Unlock the Mysteries of Mortgage Markets with The Mortgage Hub's John Cassels: Dive into the dynamic world of real estate on our business and mindset podcast as we uncover the keys to understanding mortgage markets with John Cassels from The Mortgage Hub. Get ready for invaluable insights into the ever-shifting landscape of home buying, especially with the looming policy changes from the Federal Reserve. We debunk myths and provide a roadmap for early preparation, ensuring you're well-equipped to navigate the market's twists and turns. From the recent surge in loan applications to promising trends in the housing market, coupled with actionable financial strategies, this episode is a must-listen for anyone eyeing their dream home.
Whether you're self-employed navigating mortgage qualification complexities or a salaried worker contemplating a job switch pre-home purchase, we've got you covered. In this episode, we delve into the nitty-gritty of loan approval criteria, including specific business requirements for the self-employed and the impact of job stability on loan eligibility for the salaried. Gain insights into equity growth opportunities in today's market and learn essential tips to sidestep common home-buying pitfalls. Our discussion serves as your guiding light, ensuring you maintain a solid financial footing from pre-approval excitement to the triumphant moment of closing the deal.
Join us as we explore the migration patterns between Arizona and Washington with John Cassels, offering a firsthand account of balancing business endeavors and family life across these vibrant states. Discover the irresistible charm of Arizona's sun-drenched landscapes and the strong familial ties that beckon residents back, all while adapting to the nuances of local real estate markets. Whether you're a seasoned pro or a newcomer, this episode delivers a wealth of insights into successful relocation strategies and the enduring importance of community involvement in fostering a sense of belonging. Tune in and enrich your understanding of the real estate landscape while gaining inspiration for your next move.
Unlock the Mysteries of Mortgage Markets with The Mortgage Hub's John Cassels: Dive into the dynamic world of real estate on our business and mindset podcast as we uncover the keys to understanding mortgage markets with John Cassels from The Mortgage Hub. Get ready for invaluable insights into the ever-shifting landscape of home buying, especially with the looming policy changes from the Federal Reserve. We debunk myths and provide a roadmap for early preparation, ensuring you're well-equipped to navigate the market's twists and turns. From the recent surge in loan applications to promising trends in the housing market, coupled with actionable financial strategies, this episode is a must-listen for anyone eyeing their dream home.
Whether you're self-employed navigating mortgage qualification complexities or a salaried worker contemplating a job switch pre-home purchase, we've got you covered. In this episode, we delve into the nitty-gritty of loan approval criteria, including specific business requirements for the self-employed and the impact of job stability on loan eligibility for the salaried. Gain insights into equity growth opportunities in today's market and learn essential tips to sidestep common home-buying pitfalls. Our discussion serves as your guiding light, ensuring you maintain a solid financial footing from pre-approval excitement to the triumphant moment of closing the deal.
Join us as we explore the migration patterns between Arizona and Washington with John Cassels, offering a firsthand account of balancing business endeavors and family life across these vibrant states. Discover the irresistible charm of Arizona's sun-drenched landscapes and the strong familial ties that beckon residents back, all while adapting to the nuances of local real estate markets. Whether you're a seasoned pro or a newcomer, this episode delivers a wealth of insights into successful relocation strategies and the enduring importance of community involvement in fostering a sense of belonging. Tune in and enrich your understanding of the real estate landscape while gaining inspiration for your next move.
Speaker 1:
Welcome. My name is Christina Sewick and this is the MindStrength podcast. I am here today with my inaugural guest, John Castles, with my hub mortgage. Thank you so much for being my first guest today, John.
Speaker 2:
Well, hey, thanks Christina. Yeah, Appreciate being the inaugural guest and look forward to many, many more. So let's see what we can do today to help everybody out.
Speaker 1:
Yeah, I'm really excited. So, your first, let's tell people a little bit more about you. You are in the mortgage industry for how many years?
Speaker 2:
Twenty three years we're with the mortgage hub and it's been a long journey but a great ride.
Speaker 1:
That's amazing. So you've seen a lot of things in those 23 years, I would imagine. A few up and downs, yeah, a few up and downs and just to tell everybody real quick, you were able to help people in Arizona and in Washington state. That's correct.
Speaker 2:
Yeah, yeah, we've been doing loans in both states for many years.
Speaker 1:
And today, what do you think about the market right now? I know that 2023 was a little bit interesting for everybody after that ride Of the 2021 mortgage rates. And what are you seeing out there today?
Speaker 2:
Well, you know there's a shift. I mean, we've had some great news, even though it's not the news everybody wants to hear, but the feds really change their directive on what they're looking at doing with interest rates. We're not raising rates anymore, so that's a positive sign. Typically, about nine months after the last increase, we start seeing cuts, so with that, mortgage rates will start coming down, and so we're already on that trend and we're looking forward to 2024 to seeing a couple cuts come.
Speaker 1:
Now I heard somewhere and I think it's misinformation, but I wanted to touch on this real quick. I've been seeing on social media a little bit that, oh, the Fed said that you know we're going to cut rates six times this year. Can you debunk that a bit for us please?
Speaker 2:
Yeah, so really, like you said, it's kind of misinformation. What's happened is that the Fed announced that they were going to look at cutting rates up to six times. So that means that like in their meetings over 2024, they were going to talk about should they cut rates, and that's really going to be based around what's happening with inflation. Fed has a target goal of 2%, so as they start getting closer to that, we'll start seeing those Fed cuts. That's probably not going to equal six. It'll probably be a couple less than that.
Speaker 1:
Okay, and when do you think that we're going to start to see our first cut? Maybe this year?
Speaker 2:
Well, like I mentioned, usually about nine months after that last increase. So, based on where the timeline is for that, we'll probably see summer of 2024, where we'll see the first cut. Okay, and do you see more?
Speaker 1:
applications coming across your desk right now than you did, let's say, six months ago. Oh, absolutely.
Speaker 2:
The positive thing is the mortgage rates move in advance of what the Fed's doing. So we've seen, just with the information coming out, that the Fed was going to cut rates. That's already affected where mortgage rates are. So we've seen the activity pick up. I mean we've been up anywhere from probably about 15 to 20% more loan applications since the beginning of the year. So that's a positive sign, especially going into spring. That means that those people usually we start seeing applications increase about 90 days before people actually start buying. So that's a positive sign for especially for spring and summer coming up.
Speaker 1:
And you kind of see. You saw that pick up sort of late last year. When did you see that?
Speaker 2:
Yeah, it was just right, at the end of last year, beginning of this year, and you think that this year already.
Speaker 1:
It feels like it's going to be a better market than last year. It feels more positive is what I think I'm getting from you.
Speaker 2:
Yeah, you know, I'm hearing a lot more positivity from buyers. You know, before it was well, I don't know if I can afford anything. I don't know if there's enough houses out there for me. Now it's what can I afford, what can I buy, how do I qualify? You know they're starting the conversation a lot earlier than what they have been, so I think that's a positive move, for you know what's going to happen with the housing market.
Speaker 1:
So that brings me to a question I was going to ask you when is typically a good time? Like, if I want to buy a house, should I start talking to you a week before I want to buy the house? So should I start talking to you a year before I want to buy the house, kind of. What is your kind of guideline on that?
Speaker 2:
Really as soon as possible, because you know you may have a good credit score. You think you have a good credit score. Maybe we can help, you know, increase that so that you can get a better rate or qualify for other programs. So you know, the sooner that you can start talking to somebody about the programs and you know, help budgeting. I mean if, for example, like if I was paying $2,500 a month for rent right now, but if I found out that my mortgage payment was going to be $3,500, I could actually start preparing for that by keep continuing to pay my rent at $2,500, put that extra $1,000 away in an account and really just get used to paying that mortgage payment in advance. So it's kind of, you know, like muscle memory at that point. So the sooner that you can, you know, figure out like what you're going to qualify for the plan that you're going to use programs. That's the best opportunity for somebody that's looking to buy.
Speaker 1:
So I'm thinking about my rent is $2,500 a month right now and the house that I really want to buy, price wise, the mortgage on that's $3,500, I should take a thousand of that and start putting it away in savings. Yeah, I mean, why not? That's a really good idea.
Speaker 2:
Yeah, why not get used to making that payment now instead of, you know, waiting until the very last minute? I mean, you have a little extra money, maybe you know with closing costs or down payment, or just you know having that muscle memory of making that payment per month. That way you don't have that hardship once it's time to actually start making the mortgage payment.
Speaker 1:
That's a really good idea. Now, what sort of different loan options do you have right now? What are some of your favorite products that you offer that maybe you want to tell us about?
Speaker 2:
Yeah, so I mean we have the traditional, like conventional VA, fha loans, but on top of that we also have some non-traditional loans. You know what we call non-QM. We're seeing an uptick in a lot of those programs being used because before, like for most self-employed people, you had to have tax returns and, you know, not everybody's been filing their taxes or they're behind or they have an extension in. So these non-QM programs have opened the door for self-employed people that may thought they had to wait to get their tax returns done. So we can use, like bank statements or 1099s, some options for P&Ls or just some creative programs that are available out there that they can actually go out and buy houses now instead of having to wait for those tax returns. So that's something that we've really seen being utilized. The investors really. They have a program that's a debt servicing program that if the payment covers the mortgage, then with the write-down payment we could help them buy an investment property.
Speaker 1:
Oh, that's really fantastic. And if you're self-employed, how many years do I have to be self-employed in order to come to you and say can I do an income statement loan?
Speaker 2:
Yeah, there are programs where it's a little as one year but typically it's a two-year requirement to have the business. So there's some alternative programs that will allow, like, if you've been in the business. Let's say, I was Like in a service industry and I was a sales person and I went on and started my own company. But I had a history of working in that industry. Potentially I could do it with one year's worth of being in business.
Speaker 1:
Wow, that's, that's really fantastic. Okay, so what if I'm a person that's maybe a sales manager, but I'm salaried, but I'm at, I don't know, working at x job, but I want to go work, for I'm getting a really great offer to go work for another company. Is that okay if as long as it's the same line of work, or should I not do that? Yeah, that's a great question.
Speaker 2:
So usually you know if you change positions or change companies, we just want to be able to make sure that we can verify you know what the income is. So if you're on salary and it's just maybe an upgrade in what your salary might be with the new position, you know that's a great move. You know we just have to be able to document it. Where challenges come in with income is that if you're commission only or you get paid based on like proration or you know shift differential, there's some challenges with you know making sure that you know the income is going to stay the same if you move. So if I worked at a hospital and I went to another hospital but they paid differently, we just really kind of have to dive into that. So again, if we can have as much advanced notice in Getting you a plan put together, that's really going to give you, you know, really the best steps to be able to qualify.
Speaker 1:
That's great. Now, kind of where do you see I know we touched on a little bit at the beginning here, but where do you see kind of the market ending up this year? Do you think if you're a buyer right now and you wanted to jump into the market, you're gonna have a lot of equity maybe by the end of the year. Do you think it's a good time to jump in?
Speaker 2:
Well, I mean, that is one thing is that the rate of appreciation you know is expected to continue to go up. It's a smaller number than it has been in the past, but you know house prices are still going up due to low inventory. So you know the best time to buy is, you know, ten years ago. But you know if you're not and if you haven't bought, then you know, then let's look at what your options are and see where you're at, because you know if we can get you into a house now, I mean then you'll be able to take that opportunity for the equity in the house house to go up more over the next few years.
Speaker 1:
Now, if I'm buying, if I'm buying a house, I'm excited. You know I want to. I want to get the keys. I'm looking forward to closing. What are some things that I shouldn't do once I go under contract? Like, should I go out there and buy the furniture and it's a really attractive. You know they have a great furniture. You know credit card that I can go get to get that lovely furniture over at living spaces or wherever you want to buy it from. Should I do that, you know, when I'm still in the process, when I'm close to close, to closing, is that gonna mess me up at all?
Speaker 2:
Yeah, those are what we call the do's and don'ts. So, yeah, do not change jobs, like, while you're under contract, do not go and buy a new car. Do not go open the Home Depot account Because you're excited that you're under contract and you need a new washer and dryer. You know, what happens to that is that you know we're verifying up front that you can afford the house, so we're looking into your debt to income ratio. You make changes to that debt to income ratio with a job change, so then there's might be income change or with your debt Changing because you've taken on a new debt that could actually Disqualify you for the house and I'm already you've already taken a look at everything.
Speaker 1:
I've already been be qualified. That's gonna mess me up right before closing.
Speaker 2:
Absolutely, because we're looking at those numbers and that information All the way to the day that you sign and get keys.
Speaker 1:
What if I'm? You know, I've been making my credit card payments pretty much on time, but I but I miss a payment when I'm under contract. Is that gonna mess me up?
Speaker 2:
Potentially. You know it just depends on when the reporting is done. I mean, typically we don't Pull a brand new credit report. We do verify that there is no new debt taken on. So it just depends on In that time frame if the credit report company you know updates the credit report and it's reflected on the report that we get.
Speaker 1:
Okay, so try to just keep everything just exactly as it was before I met you when we started talking. Just keep everything, don't do anything different. Yeah, what I like to tell people is live a boring life for the next 30 days while we get your deal done.
Speaker 2:
Because if you go out and that excitement gets the better of you and you decide to Make a mistake, you know if we can't fix it, then you know that could really you know it not only affect the buyer but it affects the seller, you know. So there's more than just the buyer involved in that. So we want to make sure that we do everything we can to get the transaction closed.
Speaker 1:
Okay, is there anything about a loan product that that I haven't, we haven't talked about that you that you really want to bring up and highlight.
Speaker 2:
Well, I mean there's, you know, part of the loan process is just really making sure that you know we're looking at a strong application With that's getting you know employment details for the last two years, typically Finding out assets, finding out about the credit, finding out, you know, was there a bankruptcy, was there Alamone, a divorce? Is there any federal loans that have to be paid Taxes, that are owed to the IRS? So you know, getting that information up front and then allowing us to really kind of walk through and figure out what your goals are, that's gives us the best opportunity to success.
Speaker 1:
And if I I know credit's important, but if I'm thinking about gosh, I really want to try to get the best credit possible, kind of where do I need to be to get the best interest rate for myself?
Speaker 2:
Well, it does depend on the loan programs, but typically, you know, the highest tier is 760 and above, so that's like the pinnacle of credit, you know, when it comes to evaluating interest rates. But that doesn't mean that you can't get a great rate with a lower score. It just depends on the loan program. So really, that's again something that we want to look at. You know, is it an FHA loan that we can do, or is it a conventional loan? Or, you know, if you're a veteran, can we use your VA benefits? Because sometimes those alternative programs actually will offer a rate that's comparable to somebody with a high tier credit on a conventional loan.
Speaker 1:
Yeah, I think. I think FHA and VA loans are fantastic. I think they're great options for purchasers. I think another misconception is I have to put down 20% to buy a house. Is that correct?
Speaker 2:
No, that's something that I think you know. We see a lot of advertising. You know the banks. You know they like top tier clients, so that's what they are trying to attract. But the general population can actually qualify for. You know programs as low as 3% down with the conventional. If you're a first time home buyer, there's 5% down programs. Or FHA you can do 3.5% down and VA, you know you can go zero down, so there are options with. You know low or no down payment.
Speaker 1:
Yeah, I think that's wonderful, you know, to hear that I don't need to put down 20%, because I think that is a lot of the. You know what people think. Right, I have to save up 20% in order to be able to buy a home, and that's just simply not true.
Speaker 2:
Yeah, what a lot of times people are overlooking is you know they're so concerned about, like private mortgage insurance, which you know they're not taking an account that you know if I put 5% down on a house or 3% down, they're looking at just the immediate equity that they have and not taking an account that like, well, maybe if I paid the PMI for two or three years, you know the average, you know home goes up, you know five, six, seven percent in equity right. So compounding over a two, three year period of time, you could potentially get out of that private mortgage insurance without actually having to put a 20% down payment down.
Speaker 1:
Johnny, I think the prices are just so high right now and interest rates are so high. Is it good for me to go in and buy maybe something that I can afford? You know that's a little bit less. Do you think that I'm gonna appreciate? On that Is that? I heard you say five to 6% typically a year. So should I, just, if I'm on the fence, should I jump into the real estate market and buy what I can? Do you think that's a good foot in the door?
Speaker 2:
Yeah, I mean, I don't think anybody goes out and buys their dream home like their first day.
Speaker 2:
This is not possible typically. I mean, there are somebody you know, certain people that can you know that come with a silver spoon in their mouth. But, you know, for the average home buyer you know myself, you know, I mean I bought a house that I could afford and that led me to buying multiple houses over time and I use the equity every time to move to the next house, and so that's how I was able to go from say, like you know a small condo, to you know a house with a pool. You know that my family can enjoy. So no, I don't think you have to buy, you know, the Barbie dream house right away. It's gotta be. You know, something that you can afford, something that's manageable. Maybe you turn it into a rental, you know, and keep the property. There's a lot of different paths that you can take. So again, that's where, like us, sitting down and figuring out what your goals are, figuring out what your real estate, you know truly, what your potential is, you know could figure out.
Speaker 1:
Where my dreams wanna go.
Speaker 2:
Yeah.
Speaker 1:
Yeah. So if I'm wanting to do that, if I'm wanting to do what you did and you know, buy a house and then build up the equity in it and then sell it or keep it and then go to the next one. But let's say we wanna sell it, how long do I have to hold that piece of property to make it the most beneficial for me?
Speaker 2:
So most loan programs require you to stay in the house at least 12 months as your primary residence. If you're looking at selling, there's some tax implications if you sell within a two-year period of time. There's also some equity requirements if you have too much capital gains. Those are things that we want to talk about as well. But 12 months minimum you could live in the house and then move on to the next one. I could turn that primary residence into a rental and keep doing that. I've had plenty of clients that have started off with a small house and built themselves up into what they love to be as their family home now.
Speaker 1:
We did something similar in a bought houses and fixed them up and sold them every couple years and then ended up eventually with a great piece of property. It was much different than the first one.
Speaker 2:
Yeah, I mean sweat equity is a compounding effect. As you live in the house and you do some upgrades over time and increase that value of the home while you're living there, you're going to get in a two-for-one deal basically at that point.
Speaker 1:
Tell me a little bit more about you. You were in Washington just kind of to switch it a little bit here. More to that mind strength piece. You were originally in Washington. How many years did you live in Washington before coming down to Arizona?
Speaker 2:
Yeah, so most recently it was about 15 years. I'm originally from Arizona, so I have a lot of family ties down here, but had been in the Army and then got out and stayed in Washington. While we loved our time there, it was just something that we wanted to move back to a little bit sunnier accommodations. It was something for my family. It was something that we really had to make a decision on. Is this the right move? We also had to look at the area. The great thing about being in Arizona now for us is that we have a lot of friends and family that were in Washington that now live in Arizona. There's also a lot of places that accommodate for Washington people. It was definitely something that we had, though we had to put a lot of thought in before we just jumped into it.
Speaker 1:
You've been doing this for 23 years, which is a long, long time to be in the industry. You were in Washington for 15 before you moved down here, correct? Was it just to be closer to family or quality of life?
Speaker 2:
It was a combination of a lot of different things Really the amenities that we wanted to spend more time outside. While we love the beautiful green and the water in Washington, being able to be in Arizona and wear shorts and flip flops Most of the year was an attraction for us.
Speaker 1:
Now I know you still do business in Washington.
Speaker 2:
You still run a team up there. That's correct.
Speaker 1:
Do you find that difficult to go in between the two Seamless now, or were there any reservations in the beginning when you decided that you wanted to take on that endeavor?
Speaker 2:
I think there's a lot of connection between both states we have there's a lot of golf in Washington and there's a lot of golf down here. There's a lot of hiking in Washington, a lot of hiking down here. There's a lot of things that in both states that really are complementary to each other. Then, with the people too, there's a lot of people in Washington that will come down here and visit or retire down here. That made it a little bit easier because there was already connections that I had from Washington that were already here in Arizona and vice versa. It's helpful when you can talk to agents that are in Washington and you know the area, you know the landscape, I know the developments. Still, doing business in Washington is helpful for us because we have those longstanding connections and then also being able to work with people here in Arizona and sometimes we're getting to help people from one state move to the other.
Speaker 1:
I know people from Washington come down to Arizona. Do you find anybody coming from Arizona going back up to Washington?
Speaker 2:
Not as often. Not as often, but it happens.
Speaker 1:
It happens, they want to go back up to the I mean Washington in the summer is. I'm from there too. It's gorgeous. I don't think there's a better place aesthetically. It's beautiful in the summertime. You have the, the lakes and the water and the mountains, and it's really a special place.
Speaker 2:
Well, I think that with the heat that we get here in the summertime, there's definitely.
Speaker 1:
What do you mean?
Speaker 2:
It doesn't get that hot here, yeah it's a dry heat, right, I think families that will like we send our kids up there to visit grandparents. So that's, I think, a time that when it does heat up, it's like okay, well, do I go to.
Speaker 2:
Northern Arizona or those that are from Washington. They'll go back and visit. So I've had friends that have moved down here to just be their primary and then they end up turning around and buying an investment property, maybe in Wenatchee or Central Washington or one of the islands or on the peninsula, because then they have a second home, they can go see family and they can escape the heat.
Speaker 1:
When you decided and you're a family and you decided to make the move from Washington down here, what do you think you needed in your mind to be able to go ahead and make that change? Were you fearful at all to come back down here? No, I mean were you worried about your business.
Speaker 2:
Oh, absolutely. I think that anybody that says that they don't take that into consideration is fooling themselves, because even though that I've been down here multiple times and I have family here and visited the area to live here, you really can't say that 100% everything is going to be successful. So it was something that we talked about and I think that it was something that we were prepared for. It really took the mindset to say I'm going in on this 100% and without film and I'm going to make it work. It's something that we really kind of talked about as a family what the benefits were. I mean, we weighed out pros and cons and then, once we'd really just kind of decided, you know it was okay, what's the plan? How do we get the house sold? How do we, you know, look for something when we move down here? So we really kind of started planning that out, you know, a couple months in advance.
Speaker 1:
Have you had any challenges along the way in your 23 years?
Speaker 2:
Yeah, I mean there's been some ups and downs. I mean you know there's the market, you know shifts. I mean that's the way real estate moves. It's a cycle that you know comes every. You know six, seven years. You know we've had a good 10-year run this last run, but you know it can't always be great. So you just have to be prepared for that.
Speaker 2:
And I think that you know, knowing that there's light at the end of the tunnel, you know that you have to just kind of do the work. Sometimes that might be two, three times harder, but you're, you know, putting some effort into something. But knowing that, like at the end of the day, that you know all the work that I'm putting in now is going to, you know, pay off in the future, you know it's that delayed gratification. So you just develop habits, just do the same thing. You know keep your head down and keep pushing forward. And then you know, I think, if your mind is in the right place, that you know that the outcome is going to get you to what your goals are, that you'll focus on that. And you know there's days of people you know I've taken steps backwards, but then I realize like, okay, you know it's just temporary pain, I can move forward, you know, and really kind of get back on track for that goal.
Speaker 1:
Do you have a routine that you do every day, like, do you do you get? Are you one of those people that get up at 5am and is that your? Is that you?
Speaker 2:
I mean I do and I don't you know, I mean. I'd say that I get up, I go to the gym, but I'm not you know where, like I'm cold plunging and doing you know some of this I mean you know my family is the most important thing to me.
Speaker 2:
So you know things happen with them and you know I can't always just, you know, do what's about me first. So sometimes I have to make sure that I'm having my wife with the kids or you know, doing something that family-oriented first, and then you know my routine revolves around that. So my calendar, if you look at it, it's got my family stuff on there first, and then I plan my day and my work schedule around that.
Speaker 1:
That's really nice. If you were to give some advice to a you 23 years ago, what would some of that advice be? What do you think the top couple points would be for that?
Speaker 2:
for that you 23 years ago, I mean first thing, don't you know, don't be uh like, don't avoid risk. You know, like I mean, that's the biggest thing I think is like you have to take risk, you have to be able to to, you know, put that self-confidence in that knowing that you know something that I'm going to do is going to work out. You learn by failure and so you know. It's. One of my coaches years ago said you know, phil Ford, you know, so you, uh, I would definitely say, you know, take opportunities and if it doesn't work out, then just get back up, dust yourself off and you know keep going, keep going.
Speaker 2:
Yeah, take, you know, take that opportunity to learn. And then also, the other thing is, you know, find good mentors, you know, find, uh, the people that, uh, you know really truly, you know are somebody that can, that can help you, um, and listen to them you know, that's the biggest thing I think that I would say to my younger self is you know, listen to the people that are investing in you.
Speaker 1:
Did you always?
Speaker 2:
Did I listen? Yeah, um, that's probably why I had setbacks, you know. But you know you don't always know. You know you don't always, uh, receive the information when it's given to you, right, it's, you know as they say it's. It's tough sometimes to to know that, um, what you may be doing isn't the right thing, and you know and accepting that.
Speaker 1:
So I think having having you think, you said it, you know, having it be okay to fail, you know, and learning from that, I think that's such a good thing to say, you know, because I think a lot of people are worried about feeling and they that really freaks them out, for lack of better way of saying it, and that kind of that holds them back.
Speaker 2:
Well, I mean, I look at it as you know, like look at a toddler, right.
Speaker 1:
I mean how many times?
Speaker 2:
does a toddler fall down before they walk? So I think that's one thing that happens to us as we get older in life is that we are so afraid to fall or what other people might think of us if we do sure that we don't take the risk and you know, fall down. You know 100 times before we learn how to take our first step.
Speaker 1:
Do you think you learn more in your failures than you do in your successes?
Speaker 2:
Um, I definitely, yeah, I definitely think so, because when you fail, you learn what not to do, whereas if you you know if you're successful at doing something, you don't really learn a lot from it, always because it worked out.
Speaker 1:
Yeah, I think that's really true. Now, if we're looking at kind of to jump back over to the market a little bit right now um, you know 2021, 2022, for the most part we're really good real estate years, right Do you think 2023 is kind of the worst of it that we were going to see? Do you think we're out of that now, or are you with the camp of like?
Speaker 2:
Yeah, the challenge was is that the Fed waited too long to raise rates, and this has been something that economists have talked about a lot lately is is that, you know the they probably should have had more movement in rates so that we would have had a softer landing. They moved rates at a at a fast pace that wasn't typical of what, um, the government or, you know, the economy typically supports, and so that put a little bit of a. You know, the way that I would look at it is that it's like a roller coaster, you know, I mean, it was kind of we were, you know, on this Up and down and then we hit the big hill is so, you know it. It causes, when you go up fast, you know there's a fast, you know, fall. So I think that really kind of affected people, you know, because they moved right so fast, you know people weren't really prepared for it. You know, within the real estate industry as well, it's just, you know, the, the general public.
Speaker 1:
And so somebody that got that, just got into the industry last year, would you tell them to stick with it. Hang in there, it's gonna. It's gonna get better.
Speaker 2:
Yeah, I mean they have to have the mindset that it's gonna get better, because you know, really you know again I mentioned that real estate moves in cycles. So you know, anybody that's been able to survive this last year, you know they're gonna see the benefits. I mean there's been, you know I don't know the exact number, but there's been a lot of real estate agents have gotten out of the market. There's been a lot of loan officers that have gotten out of the market.
Speaker 2:
So I think that the consumers, they really need some Expertise, you know, in their pathway to homeownership, and the real estate agents and the lenders that are around to help them. They're the ones that you know they've been able to make it through this and you know, hopefully they've learned some things, what not to do, so that you know they can move forward with a better way to handle their business, you know, moving forward over the next few years.
Speaker 1:
What do you think? It's the one like tool in your toolbox right now that would set you apart From from somebody else in your field, like if you're just getting into the industry.
Speaker 2:
So what's?
Speaker 1:
the one piece of advice that you would give somebody just starting today, and we kind of touched on that bit.
Speaker 2:
I mean just, you know like they have to learn how to. You know not only just understand guidelines, you know around loans, but they have to learn how to form great relationships. I think relationships will help in any situation. If you have great relationships, that helps with business, that helps with you know getting questions answered, it helps with solving problems. So you know, form great relationships. Learn how to network. Get a mentor Definitely get a mentor and be authentic. You know like. I mean there's. If you can't truly get people to Like who you are and trust who you are and show them that, like you're caring about who they are, you'll have challenges.
Speaker 1:
Provide them with value and and be authentic.
Speaker 2:
Absolutely.
Speaker 1:
Yeah well, john, I really appreciate you joining me today on the first ever Episode here of mind strength. I'm so excited that you were our inaugural guest. I appreciate, I appreciate your time.
Speaker 2:
Well, I appreciate you inviting me on. It's been great. I wish you much success with this.
Speaker 1:
Thank you, I hope to have you on again as a guest.
Speaker 2:
I look forward to coming back.
Speaker 1:
I just want to say thank you so much for coming on today. I think it's so valuable for people to see you know what you've done. You've changed markets. You've come from Washington to Arizona. You still work both, and I know there's other people out there that are wanting to do the same thing, so I just think it's so valuable for them to see you be successful at it.
Speaker 2:
Well, I mean it's, you know.
Speaker 2:
again, we talked about failure, you know, I mean it's not without you know, some, you know, hiccups along the way, I mean, but it can be done, you know. I think that like reaching out, building a network ahead, you know, making some trips, making some visits. You know, learning the market. Learning, you know, because there's things that are different, like you know, especially, you know, for us in Washington versus Arizona. You know it's like learning the contract. You know, like, as a loan officer, I had to learn the ins and outs of a fully different Contract on what it looked like and you know the pre-approval letter. You know there's a. You know Many lenders will just send out something that's kind of generic. Where Arizona, you know, in the purchase and sales agreement they actually have, you know, a portion of the contract that have a prequel form here Yep, which is, which is different when you're moving right.
Speaker 2:
So if you're not familiar with that, you know that could set you apart. You know, and if an agent locally, you know when they, as a listing agent, maybe you call me and and we have a conversation about the buyer and then you know they don't have the prequel form, they know that we're not, you know, in the market. So I think it helps you know if you're gonna move anywhere. You know, learn those things in advance because that can definitely set you back and, you know, maybe not have An opportunity for you to have as much success. But you know also with the family too. You know Learning where to go, where the schools are what, what neighborhoods you want to be in. You know shopping, I mean all those things that you know just If you're moving within your local market that you want to look at, you have to explore that and I think that you know For us, like we came down and stayed, you know, a few times.
Speaker 2:
I mean we'll obviously travel to here quite often for events or family, but Really spending some time, you know extended a period of time to to learn. You know when we wanted to be and you know what was important to us.
Speaker 1:
Yeah, I think, coming down to this market, in particular the Arizona market and the Phoenix area, people don't realize how big it is right, like, the valley is huge.
Speaker 1:
I think you need, like you said, many trips to come down here to see. You know when you want to live. If you have a family, where you want to bring them, schools, restaurants, where do you want your hub to be? But I mean your your proof that that it can be done. You can come down, you can be extraordinarily successful in a new market and you can work both markets.
Speaker 2:
Yeah, I mean, that's a great thing with technology these days is that, you know, we're able to Not only just talk to people, you know, but we're also able to see you, you know, with using video conferencing, and, and the great thing is is that you know if I really had to take a flight. It's not that long. So, yeah, I've actually, you know, got on a plane at like eight o'clock in the morning and went to Seattle for the day and then came back that same night, so it can be done.
Speaker 1:
Well, I think that's really encouraging, because I know there's many other people that are looking to do the same thing that you've done.
Speaker 2:
Yeah, I mean, if anybody has questions, they can always reach out to me. I'd love to have a chance to talk to them and ensure a journey.
Speaker 1:
That's really nice of you, thank you. And thank you so much for being my inaugural guest today. I truly appreciate it.