Be A VA Expert Realtor To Better Serve Our Veterans: Elaine Morgin

[00:00:00] Elaine Morgin: when you're going to invest, like realize that the military is here, spend the money and do it. Buy something decent, you know.

A three bedroom, two bath is ideal. And then, if you're a military family, think about it. You can keep your homestead. You cannot homestead in another state. But you can go downtown, turn in your orders, you can leave on your orders, and you can maintain your homestead and rent your home out. That's huge. 

[00:00:59] Tracy Hayes: Another special show. As always, I have Miss Elaine Morgin. Elaine is a top producing agent with Caldwell Banker Vanguard here in the greater Jacksonville area. Elaine specializes in VA, our veterans and our active duty relocation. And we were chatting offline at lunch a couple weeks ago and Some of the challenges that are coming up, especially with affordable housing you know, the our active duty being transferred back and forth.

And so we're going to talk about that. We're really going to dig into the VA loan and for some of you agents out there I always like to say the old wives tales, we're going to clear up some of those cause I know those will come up in our conversation, but what are some creative ways that you, when you have a a veteran or an active duty personnel.

That you can get them into the home with the current market conditions and what's going on. So Elaine, welcome back to the show. 

Thank you. Thank you. 

Enjoyed our first episode. I forget, I should have marked down what episode it was that you guys were on. Has it been, was it earlier this year? It hasn't, yeah, the beginning of the year.

Okay. Yeah. So about nine or at least nine or 10 months. Yeah. Since I had you and you on on the show. So, you've been very passionate about in, in, in our conversations. The the BAH, and you can explain it better, but what our active duty are given for housing allowance, it changes depending on what region, right, they're, they're based in.

How has that changed recently to counter, obviously, our inflation and our housing costs right now? 

[00:02:24] Elaine Morgin: Well, we had our first increase, I think we've had like two increases since, but depending on your rank and You know, where you're living, it hasn't really met the mark.

So, for example, if you're an E6, which is for Navy folks, is right, you know, it's first class. It's right in that poke where you're supposed to be in middle management, essentially. You're looking at maybe depending on where you are in your service time and all of that stuff, you're looking at minimum 2, 000.

22, 2100, give or take again, years in service, all that stuff goes involved and into it. So that price or that amount. A lot of our spouses, which I'm a spouse, you know, I'm just very fortunate to do what I'm able to do. spouses can't have a job or can't get a job because as soon as an employer finds out that they're military and now they don't want that or, you know, they work from home but now they can't work from home.

You know, there's so many different things that happen. Right. So, as a military family, we do it. We base our living on the basic housing allowance, which is BAH and we we do that purposely and You know, I'm fortunate. My husband has made e8, but we're not paid for e8 yet But the biggest thing is so maybe in sales price.

The last I checked was four hundred three hundred and forty three thousand five fifty 

[00:03:51] Tracy Hayes: median sales price in greater Northeast, 

[00:03:53] Elaine Morgin: Florida and did mostly devolve but that doesn't even give you what what is that at this rate? It's about a 20 

[00:04:04] Tracy Hayes: Oh, you're trying to challenge me here My calculator's over 

[00:04:07] Elaine Morgin: there For round number 2500.

Yeah, and you're getting paid 2000 now you're in the hole You know, so that's hard. That's hard for a military family, right? Yes, would we all love to be able to have a husband and wife working and we buy the luxury house Well, I move in three years or the husband goes and gets a second job Well, we can't because they're out to sea or they're you know, it's just not Feasible at the time.

I was thankful when my husband when we were in that transition period My husband was able to have a second job You know, he just worked odds and ends and we were able to do that But the biggest challenge right now is these families don't have the opportunity with their basic housing allowance. Yes, they make extra money You know, they have different money, but they still have to feed their families.

They still have You know, clothes to buy, things, things to buy, right? So, 

[00:04:57] Tracy Hayes: well, yeah, I mean, because right now, I mean, a 350, 000 home right now, anywhere in greater Northeast Florida, unless it's a rehabilitation home. I mean, you're, you are looking at, at best two bedrooms, three baths or three beds, three bedrooms, two baths, three bedrooms, two baths.

And, you know, if you've got a family. You know, three, four kids you're, you're cramped up. And then we, 

[00:05:20] Elaine Morgin: like, follow that with base is out of houses, so you're on a wait list. And then, okay, next alternative for on base or off base housing is Rentals, the rental prices are insane.

You know, I tell a lot of my folks will, you know, you got to break even like, let's just break even, you know, let's do one of those. But a lot of those families, they bought a 450, 000 house when the interest rate was two, right. And 

[00:05:53] Tracy Hayes: they're used to living that now that 450, 000 house is five 50, 600 or more.

Yeah. Depending on where it's at. And that's what they. Are tasting. Yeah. And then they come in and yeah. For $2,000 a month you might get a little three bedroom, two bath, townhouse. Yeah. Right. 

[00:06:10] Elaine Morgin: And if you're lucky, and so, you know, people think I'm crazy when I say this, but if you have. You know, if you bought prior, right, prior to all the craziness, and you're, you're hanging out at a two and a half percent and your mortgage is 1600 and, you know, you want to help a military family, the best thing you can do is just keep what you need, right?

And I think as a society, that's missed, you know. Some people don't change their rental prices or go up, go up, go down. One of my gentleman that I property managed for. He's like, Nope, keep it at this price. This gets me quality people. This gets them what they need. I don't need to go up. I don't need to go down.

It makes me the money I need to make. Right. And I think we miss that. 

[00:06:53] Tracy Hayes: What's, locally here in Greater Jacksonville, obviously you got Mayport. You got NAS Jacks. You got Blount Island. Blount Island. The on base housing there, what is that like? How many units do they actually have? 

[00:07:08] Elaine Morgin: Units, I'm not sure, but I know, like, in Mayport, you know, I know a little bit about NAS.

They have a little bit newer houses but on Mayport you have two options. You either go on base and enlisted housing, which is, if anyone's driven by Mayport, that's the houses that you can see right there. They're kind of like duplexes, and some are three and some are four bedrooms, depending upon what they are.

And then they also have off base housing, which is if you're on Mayport Road off of Cessie Road, it's all the way straight down there. And those are like townhomes, older they have quite a few lots open that they've not built anything. 

[00:07:43] Tracy Hayes: This is land that the government is, you know, taking control over to, obviously, for the housing crisis.

[00:07:49] Elaine Morgin: Well, just for 

[00:07:50] Tracy Hayes: housing in general, for the amount of 

[00:07:55] Elaine Morgin: Yeah, it's part of the CDC, which is like our daycare in Mayport, but that's called off base housing. And then you have houses for officers, chiefs and officers are over on base as well. There is a fair amount of housing. What people don't know is like, retirees can live in those houses.

so that we can have some military families be brought in. But a lot of times they don't. We have to remember that. Yes, the government, it's on government property, all of that, but housing is subsidized, or like, the maintenance and, and control of the operation is subsidized by Belford Beauty, which is a company that runs, not, they don't run it well, and it's sadly a mess for our military families, and it's very upsetting to see what some of these families have to live in.

And it's well known, like if you go and you Google it, it's Belford Beauty is a mess. 

[00:08:49] Tracy Hayes: the number, we don't know the exact number and that's fine, but we are the amount of sailors now in Jacksonville compared to the on base housing Now, are they given priority because they have a family versus a single?

[00:09:03] Elaine Morgin: Not to my knowledge. so you get orders. So, for example, my husband got orders. so you're getting orders and then you get hard orders. That means that you have papers in hand that you're leaving, like you're going somewhere. You can't go on base housing and you can't go on the wait list until you have hard orders.

that's challenging. So these families, you know, are coming from Washington State or Guam or wherever, Italy, Spain, all that place, and they can't confirm that they have hard orders yet. They know that they're moving. But they have not been produced hard orders, so they can't get on base housing or get on 

[00:09:40] Tracy Hayes: the list By the time they do 

[00:09:43] Elaine Morgin: get here yeah, and some of them, you know living in a hotel until they can find a place which is very stressful Same goes for like renting, you know, so sometimes it is easier when people are families are coming over It's easier to get linked up with a realtor to help you Understand the area.

So, on my website, I have a PCS guide, which is a permanent change of station. That's what we call it when we're moving. That PCS guide basically breaks down the area. Each area for everybody. You know where to look for schools. So great schools.com where to, you know, some people wanna know about the crime map, so, so 

[00:10:22] Tracy Hayes: you, so just to protect your real estate cause you can't say, Hey, that school's really shabby. Yeah. You shouldn't go over there. You refer 'em to the third party website to let them. Yeah. 

[00:10:30] Elaine Morgin: And we also have military school liaison officers. that information is there the one at Mayport is amazing She's a wonderful lady and she can give all of that information You know, I know a lot of folks that you know, I'm fortunate that we are active duty so we can see a lot of that stuff, but Knowing that there is that and you are working with the military family you can easily Google Mayport Base School Liaison, and her information comes up.

And that's a great resource for anyone that is working with a military family that doesn't have experience. I can tell them, even in my Code of Ethics, you know, I can say what school my daughter goes to and say, this is what I like about it, but I can't go and say, yeah, you want to go to this school or that school.

personally and ethically, like, it's just not what we need to be doing. But, having that resource, greatschools. com much as I hate to say it, Zillow, gives you at least the ratings, but tells you kind of like the schools, and also knowing as a military family, and you as an agent that's representing a military family, know that they have school choice.

Now, we have school choice. But having school choice as a military family is a little bit different because you can, you have first right, like you can kind of get in type deal. But knowing that that liaison is there to help you and then that gives you kind of, 

[00:11:53] Tracy Hayes: Hey, so is that special to Florida is that something dissenters just in general that every school choice situation Personnel moving in would be put in front of someone who already lives here.

[00:12:05] Elaine Morgin: That's my understanding. Yeah, that's my understanding is Military gets in if we have it if they're able to accommodate again Having that school liaison officer is the person that is the best to give all that information it's very useful. They are very helpful for those families because They know all the answers to those questions.

Tell us tell us 

[00:12:25] Tracy Hayes: a little in is let's break this down obviously very passionate about this is something, you know, you're deep into it. your husband's active duty I could just imagine you're being transferred here you've got You know, you're a young person, don't necessarily have all the connections, you know, you haven't been serving for 15 years and probably know 10 people wherever you're going to, you may not know anyone and then you've got, you know, you're telling me what your position, you may be very busy, may be deployed and then your wife's having to take this up and she's trying to handle a couple of kids at the same time.

All this stuff is going on. You know, she gets the call from her or vice versa. From their spouse. Hey, we've got new orders. We're coming to Jacksonville what happens if they're you know, she's let's say the family is in Norfolk right now Mm hmm, and they get the orders to come to Jackson.

They got to be here January 1st How does the military handle that that transfer and if they don't have a place to go to on January 1st yet 

[00:13:27] Elaine Morgin: They get 14 day per diem. So you get 14 day per diem generally. Like, if that happens, there's some change of orders or something like that, that's unpredicted, basically.

The move in rank or something of that nature. But generally the family, like for example, if my husband was to move, we would go after my husband. So he would stay on the ship or think we're lucky to be able to do that kind of stuff is he can stay on the ship and then we'll figure it out from there, but For some it's you know, hey, my leave starts here.

We're gonna do this. We're gonna do that We get 10 day house hunting leave when you choose to and stuff like that But 10 days house hunt leave You're in Italy. Like, how do you, how do you, you know, fly back over here? Usually they take it before. That's two days right there. Yeah, usually they take it before they check in and things of that nature.

But here's a prime example. I have a family. I've been talking to them since June. And they've known that they're coming from Japan. But they've lived in Japan for nine years. Wow. Their oldest is gonna be ten. And they have four kids. That's nine years of living in a foreign And then to be sent over here to Jacksonville, it's daunting, right?

I mean. I've only heard and I've had, you know, my, my best friend was stationed in Japan and it's wonderful over there and I've had families that lived there for 21 years of his 25, you know, like they're able to go kind of work at the system like we do here in Mayport and stuff like that, but this, I feel bad for her, but you know, just letting her know like, hey, it's okay.

Go follow this Facebook page the school liaison officer, if no one knows, if Mayport's Facebook page. She just had a whole breakdown with Duval County. It was great information with the superintendent and everything. But, I sent her that link and that gives her a little reassurance.

But there's still so much unknown, because they're traveling from Japan, you know, like, after nine years, they've lived over there for nine years. So, just letting her know, like, everything that you're feeling is normal. Let's get you here, that's the hardest part. Because once they get here, they will only have the suitcases that they brought.

And then All this stuff comes it's like do you could be 

[00:15:44] Tracy Hayes: a month later before all there's more than a month. 

[00:15:46] Elaine Morgin: Yeah Yeah, you know sometimes even longer, you know depends on just the transit time but yeah, so Once they get here It kind of like takes a lot off, but that travel, that travel is insane. The traveling and the, you know, I've Well, I could 

[00:16:02] Tracy Hayes: have seen, you know, just packing up for a vacation like, okay, what am I going to need, right?

Yeah. Because when they're leaving there, they got to go, what am I going to need, right? Because it could be a couple months before I see my crates come in. Mm hmm. Right? So, I mean, just the stress 

[00:16:15] Elaine Morgin: of that. I mean, that stress lasts for a while. And you can hope that you get on base. Right? Like, ugh, that would be so I think in people's head, they're like, Oh, you have on base housing.

Like, that's so easy. It's not easy. No, because it's 

[00:16:29] Tracy Hayes: always full, right? Is there any place where it's not full? 

[00:16:32] Elaine Morgin: Not to my knowledge. Right. I mean, but, you know, so the old adage, like what we used to say is, Hey, if you're living on base, you're giving the military or the government your entire basic housing allowance.

If you actually do the math, you can save money and buy a house. Well, it's not like that anymore, you know. And a lot of this stems from just the inflation and things of that nature. Jacksonville used to be the cheapest place you could buy a house. It's not that anymore. You know, I hate to say it.

Sometimes when it comes to a seller and things of that nature, it's that hard conversation of, Hey, your house is worth X. You have an offer for Y. But they want to make. Certain amount which I respect totally do but if you have a buyer that is a VA buyer and Their recession proof. Let's talk about that like VA loans are recession proof because generally most of them they're active retired.

Whatever the case is you're getting money. It's 100 percent guaranteed if you have somebody that's as a seller may say low balling you Maybe they're trying to fit it into their budget, but you're still making a hundred thousand dollars, 

[00:17:42] Tracy Hayes: let's talk about this, you know, family from Japan.

Where, you know, well, they've been over in Japan for a while. Are they a little more higher ranking, making a little more money that they're, they can expand out? Or are they more in the enlisted group that, they're enlisted groups, so they're a little tighter, tighter budget. Where are a lot of these families?

Finding that affordability home right now in the 

[00:18:02] Elaine Morgin: area having that conversation You know, I've seen a lot of texts on a few of my listings that are hey I'm not going to write an offer unless you tell me the seller is gonna take this I'm like, what are you talking about? Start a conversation. I don't care what the offer is start.

I'm not going to hey What do you think of this number? Let me know what the seller thinks. I don't want to waste time writing an offer That's what agents are saying or the action? I mean, that's what I'm hearing because that's what they're texting me. Oh my goodness. But to me, I feel like you're doing yourself a disservice.

I don't care if the offer is 100, 000 different. Why? Because it's a conversation. This is what makes 

[00:18:40] Tracy Hayes: me think of it. I'll start getting in shape when I make the team. 

[00:18:43] Elaine Morgin: Yeah. Yeah. I'll buy that, that treadmill when I'm in shape. Yeah. Yeah. I want the offer. I don't care what the offer is because it's a conversation.

We may say no and you should set your expectations. But, We know where you stand. We know where the seller stands. Let's come to a common ground because it can work If we just talk about it, yep, you're gonna have 

[00:19:06] Tracy Hayes: some Well, this that particular situation where you're talking about will the seller entertain that number?

Are you seeing that from there all different buyers are more from the VA. I'm just in general. You're hearing this Well, 

[00:19:17] Elaine Morgin: they're texting me like hey, I don't want to waste anyone's time. Like it's not a waste of time You need to write the off. Mm hmm If they like it, write the offer. I don't care. Write the offer.

[00:19:26] Tracy Hayes: Well, the thing is, right now, you're not getting the, you know, 20 offers that you were, you know, a couple years ago or 18 months ago. You know, with interest rates, you know, dropping at some, you know, I actually, I was listening to somebody this morning. I won't mention he's a, he's, he's a popular realtor, but he, he mentioned something like the 5 percent and like, no, I think six and a quarter, six and a half is probably, that's where I would set my mindset.

If it goes to 5. 875. You know, touchdown, but, you know, focus on it. But anyway, you know, we start to see that rate drop. We start to see the, you know, six is low six and we're in 7, 000 because of the demand here. We're going to see that 15, 20 offers and 30 offers 

[00:20:09] Elaine Morgin: on the right house again. Yeah. And it's going to get insane.

And like, I'm telling a lot of my active buyers that we're out searching. Yep. It's gonna be hard right now. I get it. You know, you're gonna have to pull some money You know, you're gonna be tight for a while But the moment that they drop you're gonna be in the house that you like. 

[00:20:27] Tracy Hayes: Let me let me ask you this Question because you are you like so you're extremely passionate about this more so than the average agent even agents I know who also cater to our veterans in active duty when you make an offer Like, you know, 18 months ago, you were making offers and you knew there was multiple offers.

What do you do to try to You know, obviously your, your job as the buyer's agent is to sell the offer to, hopefully the, the listers agent to obviously bring it to the lister. What are some things that you do to do that? 

[00:21:02] Elaine Morgin: In multiple offers or just in general? Well, 

[00:21:04] Tracy Hayes: just knowing that it's going to be competitive, right?

And how do you, how do you, 

[00:21:07] Elaine Morgin: you know, place that? I've set expectations to my buyers. Like, listen, when I'm in my buyer council, the questions are are you ready? And I don't mean like, hey, yeah, let's go look at some houses. I mean, are you ready to do this? This is going to be like, you're going to war like a progeny.

Let's, let's start and understand that. And then the next thing that we talk about is, you know, listen, prices are prices. We're military families, so we can't go and buy these astronomically large houses and things of that nature because like I said in my last podcast It's the here and now what is our needs and what does this house fit us?

Buying in the right area super important. You know, if you get orders in two years, if you bought low, sell high, you know, the old average can you do that? Or can you rent it? And you're still maintaining. A lot of military families are, it's 50 50 when it comes to rentals.

Like, some of them, you know, I got a closing this week and she's like, Elaine, as long as this house brings me money and we can do X, Y, and Z, I don't want to rent it. So we have those folks. And we have people that, you know, I have the conversation, well, you know, you may not want to rent it, but you have to.

Just because of the market whatever But to answer your question the things that I do is set expectations The next thing that I do is I play on terms what I mean by that is like Just because the contract says if left blank ten days, I never leave anything blank You know, I put it in there if I change the inspection period knowing that my inspector can do that it can accommodate loan approval making sure that they're already In the first done of underwriting and then they've got 

[00:22:43] Tracy Hayes: their pre approval 

[00:22:44] Elaine Morgin: pre approval not pre qualification I don't even want to see that that cue.

Yeah And then you know talking about okay. This is our budget. This is your your budget for your payment The next thing I, I use a local insurance person because they can broker them out and they can give you a vast variety of what you need. Right. And then, and with insurance 

[00:23:07] Tracy Hayes: in Florida right now, we don't know what you're gonna 

[00:23:09] Elaine Morgin: get here with.

Yeah. And, and you need to stay local. Right. You know, the locals are, they know it, they know what to expect, they know how it needs to be done. And I can call him and he can say, Elaine I gotta put it with citizens because of the age of the roof. Get out there get my four, you know, do all the things that we need and then he can say Elaine You know, I've had it just now Elaine.

They're not gonna cover it because of the hot water heater great let's make that known and See where we stand with that, you know, so Educating giving them expectations teaching them. What is Florida insurance can do because what we hear on the internet. Yes, it's awful But it's not california.

[00:23:48] Tracy Hayes: No 100 100 on on that. It's a very important thing Agents need to realize out there And you know in the loan officer as well a little bit just to know Having that insurance company because maybe when you start making those that hot water heater Maybe working, maybe fine. I mean, the inspector says, hey, it's so many years old, but it's working, okay, whatever, and the seller's like, well, it's working, but the reality is, now with the insurances, and that's the leverage that you're going to have to get that seller to replace it is, is because of the insurance, and they're going to run into that situation no matter who buys 

[00:24:24] Elaine Morgin: the home.

I had it one time with air conditioning. It was the air conditioning just stopped working mid inspection, and they wouldn't insure the home. Because on the four point it said insurance AC failed. Mm hmm. So they had to replace it. And a lot of sellers, as is their right they don't have to do those repairs.

So you have, as a buyer, it's kind of, you've got to ask yourself, do I want a deal? Or do I want to fix it myself? Like, do I want a deal where I can, if they're saying, hey, we already dropped the price enough, you know, in their mind, I'm not fixing anything. And that is their right. That is 100 percent their right.

So that's where you are in this world. It's like, what do you want? Do you want a deal? Because everyone wants a deal. Who doesn't, right? And then, or do you want to fix this stuff on your own? You know, water heaters are now, it used to be like 800 bucks, now they're a thousand, you know, installing them. I mean, go to, go to 

[00:25:20] Tracy Hayes: TECO if you've got gas.

Yes. If you've got gas Teco will set you up nicely. Nice finance plan. Yes. No interest. Great, great day. 

[00:25:29] Elaine Morgin: But I divide it by 12 so you paid off in a 

[00:25:31] Tracy Hayes: year where I was leading with that question is in, so we don't get too far off track cause I think it's, it's a valuable lesson is. How do you make, you know, we hear a lot of the agents, they want to kick the VA guy out because he wants a hundred percent, you know, well, typically they're going to go a hundred percent.

They may have some cash. So if the appraisal does come in slightly light, maybe they have some cash if they really want to, 

[00:25:54] Elaine Morgin: you know, want that money. And so I have that conversation with the agent, but also I do it on terms. So for example, if we're in a multiple offer situation, I'm not going to throw money, throwing money for a military family on an offer.

Like going 20, 000 over is not smart because they have to make up that money if they're buying it over like the appraisal comes in Lower or they're gonna do the gap They have to make that up and they don't have sometimes have enough time in the equity pool to do that So on terms what I mean by that is The buyer would be offering to pay the deed stamps The title insurance, the title search, the municipal lien search, because a seller is paying about 11 percent in interest, or 11 percent in closing costs, where a buyer, that only adds about one more percent.

So now it's 4%. And they can still buy it at market value, but to a seller, that looks like they just gave them a million dollars. You know because that that deed stamp can vary on the price of the home and things of that nature and when it closes 

[00:26:53] Tracy Hayes: But if so instead of offering more money They're offering to cover more the seller's side of the values Yeah Will you 

[00:27:00] Elaine Morgin: present it and then we can also at that point ask for the buyer to put pay on points or pay on?

something but You have two, two times to negotiate. So you have the very first offer, which you basically are saying, Hey, this is everything I want. And this is where, you know, Hey, Mr. Seller. Like, here's where we stand. Mm-Hmm, . And then you have your inspection period. Yes, there's going to be tic techy items on every single house.

The objective of a, person doing the inspection inspector is they have to check everything. It's gonna be 55 to 65 pages long, ask for money. at that point. Now that takes the relief off the seller for not having to fix anything and now you can negotiate again. 

[00:27:42] Tracy Hayes: my vision is, yeah, we are going to see, you know, rates into the sixes and hopefully low sixes.

As we did, it was October of 2008, six and a quarter. Yeah. And that's when the rates started to go down. It was in the November of 2008. We, we, we start settling back in there. We start seeing. 10, 15 offers on a home. I guess I'm trying to get really like right down to give 

[00:28:05] Elaine Morgin: all my patterns. 

[00:28:07] Tracy Hayes: Well, some of it's you, right?

Some of it's Hey, it's Elaine Morgan. She's, you know, she's bringing me a client. I know her, her stuff's, you know, in a pile, right? You've got everything squared away. We know she's got a pre approval on on that. Veteran if that's what you're representing at the point you've got yourself some of some of it is the agent It gets through the at least the 

[00:28:26] Elaine Morgin: initial.

It's just having a conversation, you know Quality work being friendly being nice. It's a weird thing And the the objective for me is get the deal closed, right? so for me, it's letting the agent know hey, I have a VA buyer and sometimes now because it VA can allow this, but you may have as a buyer to get your WDO stuff done, you know, you have to do it.

And sometimes if you want the house bad enough, then that you're gonna do that, right? Or there's been times where I just handle it, you know, I'm gonna take care of my people, like I'm gonna get the deal closed. There's no reason, if you're in Japan or if you're in Italy, I have handyman, just Whatever, right?

It's not a big deal. Just handle it. But the other questions are like, you know Once I kind of negotiate that deal we want to know what that seller really wants. Do they want a 20 day close? Do they want this do they want that that's you know Have all your stuff in a drop box get ready. Mr. Buyer because we're going we're going crazy on this But to be honest, basically just do that I'm not gonna over Sell a house that doesn't need to be, you know what I'm saying?

I'm not going to go and say you need to make this offer three thousand Hundred million dollars overpriced, right? It's all cash at the end Be negotiable be flexible 

[00:29:47] Tracy Hayes: Well, how do you handle because we're just talking about the stress and the lack of inventory on base off base, whatever And like, they want this home and, and like, 

[00:29:57] Elaine Morgin: I've written letters to people that don't have their homes for sale, and said, hey, my buyer loves your floor plan, and we just saw one down the street.

Would you be interested in selling? It's only worked once, but, yeah. Or if they want to be in that area, I just send them a mailer. You know, not like a phony one, but some people, you know, Well, I'm 

[00:30:19] Tracy Hayes: just thinking the stress of that family moving in they're stressed out and it's like, well, they want 20, 000 over, you know, either we pull it out of our savings or thrift savings plan or mom helps them out or whatever.

How do you keep them from getting too emotional and allow you? To do what you do Which maybe end up being they end up paying 20 because I just really want that house and that's their choice to do it I 

[00:30:44] Elaine Morgin: just you know, it's Honesty, like just a blanket on a statement like hey This is where we are and this all comes into the buyer console the very first thing the very first conversation We have that very first conversation like three times because they need you know, it's a lot of information So anytime that I'm starting an offer it's Hey guys, what do you want your offer to look like?

Obviously they're always gonna say, what is your opinion? That's not my offer. , it's your offer. You need to tell me what you want. Right? And then we start, and we, 

[00:31:16] Tracy Hayes: well, you must obviously, do you price, you look for comps? Oh yeah. I make sure the house is priced correctly and, and 

[00:31:22] Elaine Morgin: that sort of thing.

Yeah. Yeah. I we're getting at comps and I, you know, when we get into those multiple offer situations, I hope we don't see what we did last time, which was like. Hey, we're gonna make a ridiculous offer and throw it at the wall and see if it sticks and then it does stick and You're like, well, I didn't think that was gonna stick.

Yeah, it's 

[00:31:42] Tracy Hayes: not really the house I want. Yeah, 

[00:31:45] Elaine Morgin: yeah. But then, you know, when you're seeing all these 17, 18 offers and all that stuff as a agent selling the home I'm going through and I'm seeing You know, things that, I wouldn't put in offers, right? So then you just kind of go through and you kind of like dialogue what it is and then we break it all down.

But really, what am I doing to keep them from me not being stressed? Trust the process. It's the process. Like, we've talked about this. 

[00:32:13] Tracy Hayes: You're confidence is spilling over to them. Yeah it's. And putting them at ease because you're confident, you're, you're in control. Yeah, and, and that's. As much as you 

[00:32:20] Elaine Morgin: can't be in control.

Yeah, as much as I can't be. But, but the reality is, don't set your expectations. You know, if you don't set them. Like, if you think, hey you're gonna get this house and then you don't. You've, you've overdone yourself. You have to allow, you know, law of attraction. And just kinda like, let things go. Because.

When I'm talking to a buyer I'm telling them listen in that time. Hey, you're going to be putting in 17 18 19 offers You're going to in and it's nothing 

[00:32:53] Tracy Hayes: at least have the mindset you are. Yeah, maybe you do get it on the second or third one Yeah, yeah, 

[00:32:58] Elaine Morgin: and you know But you gotta listen. That's what I make sure you gotta listen because what I'm telling him like you know, if I, what I'll do is I'll have the lender break down and show them what it looks like if you're putting in the deed stamps, the title insurance, blah, blah, blah.

The price difference into their loan and things of that nature is not much. It's really not. But also again, going back to when I'm setting that expectation, I'm telling them you're going to do this. This is what's going to happen or a lot of families are looking for land right now. A lot of that land is in Middleburg.

You know or Nassau County or what I think 

[00:33:35] Tracy Hayes: that's the inexpensive 

[00:33:37] Elaine Morgin: Yeah, until they figure out that you got to pay for the land plus the plus the 

[00:33:41] Tracy Hayes: impact fees. It's not 

[00:33:42] Elaine Morgin: already developed Yeah, so and then you know I have a deal right now. The house is only a hundred and eighty thousand dollars But he has spent inspections and all the things that we've had to do, he's in an inspection period probably about 1, 300.

And, you know, when we're standing out there, and I'm showing him the house, I say to him, like, hey, this is a septic. You know, this is where your septic is. This is where the line is. You know, this is where the drain field is. Don't be surprised if, You know the when you have it inspected the inspect the septic company is going to tell you you need a new drain field But then mark that The drain fields working like I said that they don't like that.

It's underground. They want a mound system You know, it's everything wants to be improved, but it gravity has always worked. Like why do we need? so setting expectations being realistic, when these interest rates drop, which is so funny because 2008 and all that. I was at Disney, but I was helping my parents still in Indiana.

And, I remember when those interest rates dropped, but then I remember buying my first house at 5. And then we were like, we just stole this house at 5%. And it's like, and my first house in Orlando was like 6%. It was crazy. But, the reality is, the twos and threes are not coming back. We need to be okay with that.

What's going to happen is the balancing of the market is going to happen and prices are going to start to balance. In the decent areas, will we see 250 again? Probably not. Not for a while. If we do, we'll be lucky. But, those were the sweet spots for military families. 250, 280. 

[00:35:21] Tracy Hayes: Let's flip the side and let's go to the seller side.

Because this is where I know you have stories and you just share them. And the agents who are getting, whether it's two or three offers, they may be getting, you know, Good House is getting four or five offers on a weekend right now, may, may be going to, to double digit offers in, you know, as we get closer to summer, but you have done enough VA loans.

a question I always get is, you know, if it has a cesspool, you know, if it has I guess I'm from up north, we call them cesspools northeast cesspools, septic tank, okay, or obviously well water, you know, FHA wants it tested, right? So does VA, yeah. So the expectation that. When you're selling that home from the, from a seller side.

Not you being the actual selling agent, but these agents who are selling the home when you're making the VA offer, when any agent's making an offer with a VA, the stories I know you're hearing, I always hear it's about, oh, it won't pass a VA inspection. I'm like, well, what's the difference between a VA inspection and the inspection they get for any, are they not hiring?

If they're not getting it inspected, okay, you're out. Yeah. If they're getting it inspected, there's no difference in 

[00:36:37] Elaine Morgin: the inspection. So that's the. , I call it the 1986 wise tail. Mm-Hmm. . Uhhuh. . I only called that because that's what I think of. But back then in the nine eighties and nineties, yes. You had a VA qualified inspector, and you had the VA appraiser.

We still have VA appraisers that inspect and their word is kind of, you know, they like. Plugs covered outside. They're looking for the same thing like FHA is safety, sanitary, all that stuff. That's the appraiser that's looking for that. The 

[00:37:11] Tracy Hayes: obvious things that they can see, they're not digging into the wall, but they walk through the kitchen and they don't, you don't have the GFI or whatever outlets, right?

They're 

[00:37:19] Elaine Morgin: not that picky, but like, they're looking for a VA appraiser is looking for I'm trying to go through my head to think of, of the plug covers outside, they want nothing out of the norm, right? Yeah, yeah. They want it to be safe, right? They want the WDO to be done. FHA, they, they ask for, you know, no chipping paint, no things like that.

It's all insured and uninsured and loans, so you gotta pick which one you're gonna battle with, right? Mm-Hmm, . But as a seller anyways, it. VA, so we have a VA appraiser and we have a VA inspector. The VA inspector is not a thing. In the state of Florida, we're a WDO. If you don't have a clear WDO, we need to get it clear.

[00:38:00] Tracy Hayes: Which, on any other non veteran, non VA loan, you're, it's Florida. You want that 

[00:38:08] Elaine Morgin: anyway. Yeah, yeah. You have, you don't want remnants of powder post beetles. You don't want dry wood everywhere that's, you know, people don't realize, and I learned on my own, that termites are everywhere. When it rains and it's soggy, They come out like it's just what they do.

It's breeding ground here But when people are like it's not gonna pass VA my back to them is how do you know that? And they'll say well, it doesn't have a handrail. Well, that's not VA. That's FHA and people don't realize how easy it is to Just I mean Get a VA loan, 

[00:38:41] Tracy Hayes: but the handrail thing, like if, you know, whatever, whatever code is right.

The deck is, the deck is so many feet off the ground, I got to have a handrail, right? If I'm doing a conventional Fannie Mae loan and the home inspector is going by, , they may list that. If that's something they see that, Hey, you know, 

[00:38:57] Elaine Morgin: an appraiser is not going to see the home inspection. Right.

So, but the, the bottom line is for VA, we have to, Recreate our mindset that if you're selling and you want someone to purchase your home and let's say it is a little messed up and it's got this and it's got that, don't assume that the VA is not going to take it because it's fixable, right?

It's sanitary. It's all that stuff. Put it on the market for VA as well. Like, don't forget them. Even knowing a lot of times some people just have conventional and FHA or whatever and I'll put in a VA offer because it's the same, you know, and so people just assume, you know, we don't have VA inspectors anymore, we have VA appraisers still the appraiser is kind of the word of God, they decide what happens, they walk on water as I always explain, they're the ones that if there is conditions that need to be handled prior to closing.

They're the ones that are going to tell us, not the home inspector. The home inspector gives a general idea and basically tells us what's safe and not and all the things in the home, which is the information you want. But when I'm selling, I'm explaining what the loans are.

You know, what do they need? What are the terms? End of the day, even if it's a conventional loan, there are some times where there's conditions from the appraiser. Yes, you're 

[00:40:18] Tracy Hayes: not putting a lot of money down on a conventional loan. They're gonna be tight. Yeah 

[00:40:20] Elaine Morgin: Yeah, they're gonna be really tight and they're gonna be picky and that you know, it's up to them what they see We'll check the box for them to answer your question On to the selling side if I'm writing up a VA offer or what have you or if I'm explaining it You know, I'm not gonna sit there and tell you what's the best loan, but I'm gonna tell you Hey, do you want to get a house closed because if you get this offer?

You know, let's look through this offer. Let me explain this to you. I'm going to explain it that you know There's not anything different. Yep. You may have to do the WDO if the buyer can't and You should have done that before you put the house on the market anyways Yeah, 

[00:40:55] Tracy Hayes: or you should have it. I mean, I mean the house should have a bond on it Anyway, right you should have a termite bond on there But the in conclusion the VA is going to inspect the house some sort of like greatly different way It's not true.

It's not true. It's not true. And whether the appraiser's seeing it or your actual home inspector, you're hiring personally yourself just for it to be your eyes, they're reporting the same thing, whether that's a VA loan or any other conventional 

[00:41:22] Elaine Morgin: FHA or whatever. And a VA appraiser is just going to do what is in his guidelines to do.

You know, he's going to check his boxes as needed. So he's, he's going to look for, you know, if he doesn't feel like it's safe, it's the three S's of sanitary, safety, and yeah, he's going to look for all that. So if he feels like a plug outside that's not covered is not safe, he's going to tell you if he feels that gosh, if he feels like there's something wrong with the sighting, he's going to tell you, you know, I can't say that they go in a huge grave detail, but I'll say, you know, here's a prime example.

I had a VA buyer that bought in Winfield lakes and I told the seller, the selling agent, Hey, Before we had the appraisal, because we knew the leak wasn't active anymore, it just had the spots on the ceiling. I was like, you should just throw some kills over it and like, let's not bother anymore with it.

And it was like three spots. And he's like, no, we're not going to do that. I said, okay. So guess what? 

You got to get a roof inspection because he sees a leak in the 

ceiling. Even though we just had the roof done, they just had the roof done. We have to have a certified roof inspection now so really depending on what is going to take, you know, you know, so 

[00:42:32] Tracy Hayes: that.

You were representing the. Buyer. You were representing the buyer there. and this is what really drives me nuts and it goes into the, into the NAR lawsuit a little bit.  talking about, you know, the agents really need to explain, you know, their value. This is what we do because they don't see a lot of the things that you do.

You're making decisions or like in that case, like, Hey, let's save ourselves a lot of hassle and money. Put something on that, stain, right? We don't, we don't see we, and we know that it's not active anymore, so we're comfortable with that. But if the appraiser sees it, he wants other questions. He's going to ask other questions.

Yeah. But. The value as part of that is that agent should have took it upon themselves to pay some handyman to go in there and I don't know, repaint the whole, whatever, do what you asked to do, enough so it doesn't, you know, enough to do. Okay, it cost them 500. Yeah, whatever, you know, whatever that number is.

That is the price of peace of mind. That is price of smoothness in the process. Because getting the roof inspection creates doubt and 

[00:43:36] Elaine Morgin: then, you know. Now we have a roof inspection, now my buyers are still hindered by The condition not being because they hold the appraisal amount, you know, they hold your value.

You can close we were able to close It was a nightmare, but we were able to close But now my buyer they had to go and do that right away because seller wouldn't even when we asked for it Yeah, they didn't do it. Now. My buyer has to be hindered which they were repainting the house anyway, so it's like, okay, whatever but they, then they have to be bothered by it, and we're still dealing with it.

Hey, the appraiser wants a final inspection. Appraiser had to cancel. Hey, Mr. Bayer, they had to cancel, you know, so. I 

[00:44:13] Tracy Hayes: think there's this thing, and my, my wife and I talk about it, because we run into similar, she's run into similar situations. I you know, she had a comment someone left her about, she was still picking the weeds in the yard up to closing.

You know what I'm saying? Yeah, yeah, yeah. In this house, this house had been left, and I, I mentioned that in a previous episode as well. And we're There's some people, the old school way is, I'm gonna, I'm gonna, how about cleaning the house, right? Making sure the house is clean. I mean, maybe your buyers don't do it, but as the selling agent to represent yourself.

To have, you know, have someone go through and clean the house. 

[00:44:49] Elaine Morgin: I have a cleaning lady, and some of my sellers are like, but I can clean. Yes, you can. But, let's take this off your plate. And it's part of one of my packages. Staging and cleaning and doing all this stuff and doing a home inspection prior to listing So we know like I want this to be a smooth transition Is it always no there we gonna find other stuff that maybe the inspector didn't find or they want the real problems the real problems we're gonna handle the majority right and and there's things People who live in their homes for quite a number of years and they forget Yeah, I forgot that that was like that or oh, yeah, we just figured that out I mean one of my listings that we thank goodness.

We did a pre listing inspection because we found all the WDO It was over in the older area of Fort Caroline So there's tons of trees and then the when they bought the house with me back in 17 or 18 There was a new roof put on but we were unaware that the roofer did not put the sheathing down properly the Protection so we were able to mitigate it prior and get it done and Then we found a roof leak, but we weren't on the market yet.

So we were able to fix it Yeah, nobody knows the difference. Yeah, and but it also prepares them like You know if they don't have the money right now. Hey guys, we can do this at closing We'll pay for it at closing and thank goodness for the quality of vendors that I keep in my list Because we're able to do that.

They know that they're gonna get paid And you know, it's just being proactive instead of reactive. It's 

[00:46:28] Tracy Hayes: Because would you agree, You know, the stain on the ceiling that isn't even, you know, not an active leak anymore. You go, no big deal, it's not an active leak, we had the roof replaced.

Not a big deal. But every situation like that is an opportunity for to back out, right? For whatever situation, it just, it creates doubt, then the next thing is, next thing is, Oh my God, there's something else versus, Oh, there's just that type. When you can eliminate the obvious and, and only worry about the stuff that maybe you don't see that inspector crawls up there and find something.

Okay. That's not a big deal, but when you have the obvious things and you're not. You know as a listing agent spend some time. You're 1099 anyway. Yeah, so you need some tax deductions So you're gonna either pay Uncle Sam or paint that ceiling. What do you want to do with the 

[00:47:15] Elaine Morgin: money? Yeah, and that's what I usually do.

I have a handyman and you know, I run him everywhere, but it's like, okay Let's just get it done The biggest thing is I was just thinking about this VA loan if you're gonna tell me how many years you've been doing real estate. I'm proud of you Like that's, that's great. I'm so glad. let's get this done.

Let's be cordial. Let's be nice. Let's, just get this done. What do you need from me to help you as an agent, you know? And if you're new to the game, we've all been there. Like we've all 

[00:47:46] Tracy Hayes: been there. I think it was in Revenge of the Nerds. It just doesn't matter, right? It just doesn't matter.

It doesn't matter how many years you've been in the business. Someone may know the neighborhood a little better. Somebody may know a VA a little bit better. Work with that person. Hey, say hey, I'm glad you're on the other end. Let's get this deal done and make our, make our clients happy, your client and the buyer and the seller happy.

All right, so inspections are one of the biggest wives sales. I think the other thing is the VA appraiser, as far as value is going to be harder on it than a conventional appraiser. When in reality, a VA appraiser. Does all those others they're generally the most senior appraisers in the area Because they have to work up to that to where the VA is gonna approve them And then the other thing the VA holds them, you know One thing I like as a lender is the VA holds it that they have to have that appraiser back that appraisal back But you know, there's no leeway and them saying well, I mean, you know so much more time They need to get their butt out there and get it done.

Yeah. 

[00:48:47] Elaine Morgin: Yeah the market The market is not an appraiser. The market is not anybody but the buyers. Like, that's the market. If nobody's coming into your house and looking at your house every week, at least once, twice, you need to readjust. If you've been on the market for 84 days and you haven't had a showing, you need to reposition.

and that's a hard thing for folks because everyone's like, well, if we reduce our prices and that make us look Bad no not having showings makes you look bad like being on the market x monday that that's too long It 

[00:49:22] Tracy Hayes: does it does look a little because I mean I know as you guys talk. I mean, oh so and so dropped the price And type of thing well It could have been two way either you as a real estate agent Didn't comp it out correctly, enlisted it wrong, or you suggested, you know, a 400, 000, but they insisted on listing it at 425, and 425 just wasn't getting it done.

Yeah and 

[00:49:43] Elaine Morgin: that's the conversation. Yeah. It's a range, market is on a range, and always next is like, will I know how much it came in at, unless it's low, like, and we lost as a VA go October 2020. They took out the clause where then now a VA buyer can still walk, but the, seller does not have to sell to them at that Tidewater price.

And a lot of folks don't know what Tidewater is. So when you're dealing with a lot of VA buyers, if you go into Tidewater, the listing agent has an opportunity to state their clause, right? To state like, Hey, Mr. Appraiser. Did you happen to look at X, Y, and Z comps and believe it or not, I find RPR rarely, really, really beneficial for this, portion, because RPR gives you the list of public sales.

So if somebody just did it off market, did it, whatever, RPR is a system within MLS that will show you those. And sometimes you, as the listing agent can say, Hey, Mr. Appraiser, Did you see this off market, this off market, this off market? They have basically the same stuff that we do. They can see those things.

But maybe you bring up something. You have 48 hours to give those comps to them. Even if it's just the comps that you used, send it in. Because you as a listing agent can state your case with the appraiser and then to your sellers you can say, hey guys, everything I've shown you is this. I'm not certified to do appraisals.

I can do CMAs. I can do that stuff. But if it comes in lower, a thousand, a hundred dollars lower, he's still going to tell us it's tidewater. So we either move forward or, or they leave, you know, what do you want? if it's a hundred thousand dollars less, I'm not doing it. Well, it's probably not going to be that low, but let's be realistic and know that.

It could be just a hundred dollars difference and he has to call Tidewater because he's not getting the the appraisal to the number and sometimes, you know, we weren't seeing it a whole lot during end of 19 to May of 22 we weren't seeing a lot But we're starting to and do I think it's people readjusting the market like the appraisers?

No I think it's the market adjusting 

[00:52:10] Tracy Hayes: Because some of the people are kind of behind the wave in the sense of, you know, what's going on, obviously the rates have increased during that time. Right? So the rates increase, that starts to stagnate, you know, how much you can get for your home.

And they're still thinking, well, I should be based on the percentages of what the, they tell us nationally, our homes should have increased. I should be able to get this. And then in reality, the market in the last 18 months or whatever has gone you know, you're not seeing the increases in the pricing there, but the bottom line is value wise.

That appraiser is not just as he's doing it for the VA is not trying to lowball. He's going to. Give it wherever the market value is and ultimately the appraiser doesn't want to you know, if the price is there they're not looking to screw anybody over or cause any pain in the industry I mean, they're part 

[00:52:59] Elaine Morgin: of tidewater is the worst pain for them.

Yeah, because now they have to wait now They have a timeline. I mean for them to have to call tidewater. They're like, oh gosh Now, now, you know, 

[00:53:10] Tracy Hayes: it's time off their hand, you know, or their assistant 

[00:53:13] Elaine Morgin: or whatever, yeah, just like them, they don't get paid like right away, it's all time, everyone has limited time and now he's like, I've really pulled and push you, you know, give me what you have, let's bundle this together which is why he doesn't.

He'll explain it in the appraisal, but he'll say, Hey, your comps weren't what I was needing. if you read the appraisal, he'll tell you why they weren't. For example, when I went in Tidewater, it was a 25, 000 difference for my buyers, which is great for my buyers. Right. But then you have to have appraisal came in 25 less.

Okay. And you have to have that conversation of, Hey, This is what it is. He may say, you know, this is, you know, they can't afford to close at that price. You know, then when you do your research, it's like, why couldn't they be able to afford that price? And then you're looking at, at RPR and you can see that they have two mortgages on it.

And you can see like all of this information. It's like, well, this is the reality, guys. They have two mortgages on it. They have, you know, they may not make it. They're cut what they need to pay off 

[00:54:17] Tracy Hayes: everything for it originally. So they're taps. That's why they're 

[00:54:19] Elaine Morgin: charged Well, they may have not overpaid for it.

They may have taken a reverse mortgage on it They may have you know, who knows what they've done, but on our PR it kind of gives you a general idea Even the property appraiser you can see where the quick claims are and stuff like that so having that conversation and giving your buyers the evidence of this is the reality that's You know, it's not because the VA loan.

It's the reality of the market. The market is shifting. The market is changing. We need to realize that's the reality and the appraiser is just doing his job. Just like the inspector, just like the realtor, just like everybody else. They're doing their job. And if you can't justify the number, So 

[00:54:59] Tracy Hayes: inspections, don't worry about them.

They're the same inspections. Any else that's going to get anyone else is going to question any of the things that are listed on there. Yeah. and you as a agent, if you were the buyer's representative, you would want those brings because you want your buyer to know, you know, those issues are there.

And hopefully you have two good agents that figure out a way to solve whatever. Things need to be fixed or whatever. Appraisers are the same. They're actually I think you're yeah, can you get a bad appraiser? Of course you can I mean that there were other people go man Where did this come from?

It happens occasionally Most these guys are senior and you're able to they're they're looking to make the deal work and and so So there's nothing to be worried about a va appraisal is there anything, anything else you, you see some of these listing agents who aren't experienced in the VA process that throw out there as objections of why not to accept the VA offer?

those are the two 

[00:55:50] Elaine Morgin: biggest, I know that. Yeah, they just don't think that they have money. It's not that they don't have money. If, you know, a lot of VA buyers as they buy one or two or so on, they go conventional. Because of the 3 percent down or, that will be their rental or whatever the case is.

Right? Or maybe they 

[00:56:05] Tracy Hayes: do sell a home that they had a VA and they have a significant down payment and the pricing is better on a conventional with 30 percent down, that might 

[00:56:12] Elaine Morgin: be there. It might be, but also like VA, so I have a family friend that bought in South Florida and he's like, well, which one should I use?

You know, with interest rates right now, the VA loan is always going to be better. The interest rate's always going to be better. , do you have a bunch of money in your savings? Absolutely. But does the house need stuff? Maybe that's what they wanna do. Yep. Right. Keep cash in their 

[00:56:32] Tracy Hayes: pocket. Yeah. And are they paying the funding fee or not?

Right? Yeah. You know, that's, that's a 

[00:56:37] Elaine Morgin: factor. Yeah. If you're not paying the funding fee or you get it reduced. I'm gonna go VA. if I have that opportunity I'm gonna go VA because it's a quick cut and dry loan from free Lenders, we love 

[00:56:48] Tracy Hayes: VA loans the most forgiving loan for any boo boos that the buyer You don't have 

[00:56:53] Elaine Morgin: a DTI now.

It's all determined on the lender, but you know You couldn't ask for an easier process. Could there be hiccups? Yes. In a conventional loan, could there be hiccups? Of course. Yeah, you don't get approved. You know, I saw something that the conventional loan is the hardest to approve anybody with right now.

But at the end of the day, the VA loan Stopped thinking that they don't have money because they do. They're 100 percent financed and they're 100% Guaranteed. So, when 

[00:57:26] Tracy Hayes: you have a buyer, VA buyer, and you make the offer, you know, it's going to be tight or whatever. Do you mention in any sort of way when you submit that?

Because I know you're probably, you know, a top agent, like yourself, you're calling the listing agent and hey, say, I'm sending you over an offer. Here it is. Do you let them know? Say, Hey, if the appraisal comes in 10, 000, like they're good, they've got cash. if we need to work at, they should not fear, you know, do you tell them little things like that?

I 

[00:57:50] Elaine Morgin: tell him, how do you feel about the appraisal? And if they're like, well, we're feeling pretty good, you know, like, okay. Okay. Okay. Just don't forget, you know, are you familiar with Tidewater? I kind of do an educational question versus, hey, we're okay because I'm not going to give up my buyer's hand. You know, if we can 

[00:58:07] Tracy Hayes: save money.

Well, the assumption being is they don't have cash is why they're going 100%, but that's not really it because they're probably getting a better interest rate and you know, it's yeah. 

[00:58:17] Elaine Morgin: Yeah. I haven't had anyone ask me why they're going VA to my knowledge, but I, 

[00:58:24] Tracy Hayes: Now, well, I think the the assumption is obviously, you know, little to no money out of their pocket, they still gotta pay clothing costs. Yeah, well, I mean, you know, that's another, you know, creative way. But their assumption is, yeah, they don't have any money. And when you start getting those competitive offers, well, what if the appraisal comes in a little light? You know, what can they, can they make it?

Cause that's the first, I would imagine someone who's not educated you know, in Tidewater doesn't, they don't always, you know, you could send all the comps. They say, no, we're sticking right there. That's where it's at. And it's like 10, 000 difference. And the buyers really do want it. But if. They may not have got the offer accepted if they think they're, 

[00:59:03] Elaine Morgin: you know, overpriced.

Then we renegotiate, you know. 

[00:59:06] Tracy Hayes: But I'm talking before we even get to negotiate. What are you telling them on that phone call when you call the listing agent? Hey, 

[00:59:11] Elaine Morgin: they're, you know, They're pre approved. They're pre approved. They're ready to buy. You know, we can get this done in X amount of days.

that question comes up, which most times I'm going to look at the Comps and stuff, and I'm gonna say, Hey, I see you're a little high on this or what have you. But I'm gonna have that conversation when we need to have that conversation. And that's how I kinda leave it because at the end of the day, if we know that that person is making a good draw on that house or what have you, end of the day, every seller needs to understand if your house pays you back, you're in a good position.

 If you're going to table and you owe money, that's a conversation to have. For me, grade only lasts for so long and I just think that's unacceptable, but that's, that's me. I think that if you're going to play the game of real estate, you do it as you're getting paid. If that means that you live in the house for two years and you only made ten grand.

Guess what your house paid you and paid your closing costs, you know, so that's how I think and that's I don't think that anyone should have to think how I think but game of real estate is to be paid and not to have to pay and if it's a military family, obviously everyone says Oh military is always gonna sell the military.

That's not the case It's the best offer. Whatever is the best offer the best terms the best thing that's it but as for my buyers if I'm having that conversation I just educate, like, hey, before we go into this too deep, are you, is your buyer or is your seller prepared if this comes in lower, what we're going to do and what, you know, what's going to happen.

And generally they're like, yeah, they, we've already talked about it. So it's, it's catching on 

[01:00:44] Tracy Hayes: quicker. You have credibility. Because one, A, you're confident in it, but B, you are, and you have numbers to show it, and obviously, you know, you are active duty, your husband's active duty, and you're dealing with it, so you have that credibility space that they're, they're listening to your advice.

I want to change gears a little bit and kind of finish up with this, because it's something you mentioned when we were at, at lunch. You were looking to possibly, you know, you were looking at a couple homes to invest that Mayport, if I'm not mistaken. And maybe you're not going to you'll get the market rent, but knowing that you are, going to market that rent, the rentals to our active duty to know that they're getting that BAH and know what they're getting, that You know, someone looking at it as a long term investment, which way the stock market is right now and so forth, buying real estate outside Mayport, you know, even if you had put some money into it, obviously there's a return on investment, but know every month you're going to get that 2, 000 or whatever it is coming in every month.

Tell us a little bit about your passion here and if others are thinking about it obviously to reach out to you, but think about it wherever you may be. You might be listening to this in Norfolk right now, or TowneBank, is that TowneBank? But. You know, that these opportunities are there in the demand for military housing is there and if you do price it right and obviously make contact, you know, I'm sure there's people on base that are trying to help these sailors and soldiers locate rentals at least or agents that kind of investment is, is a solid.

[01:02:15] Elaine Morgin: Yeah. So renting the military, you can't go wrong because they're foolproof, you know, you're going to get paid. You know, they have to pay. If they don't pay, then they're with their command and all of that stuff. There's a tunnel down there that you don't want to go down, right? But I think you 

[01:02:30] Tracy Hayes: mentioned that they could lose their security clearance.

Yeah, they could. Right? And that's very vital to how much money they make. 

[01:02:34] Elaine Morgin: Yeah, that's vital to their career. Yeah. so for me, you know, my goal in life is to My passion in life is to make people understand what our military goes through. Because it's not all Cupcakes, right? You know, our, healthcare is hard.

Everything is hard. It's, you know, what we're serving our country, the, the separation is hard. My husband is deploying next month, so the separation is hard. You know, when they tell you it's undetermined amount of time, that's hard. Then you gotta move, and you got kids, and you got this, and you got that.

But if we were able to, and I get it, people gotta make money, but you also have to look at what you're purchasing. To also realize, I think we have 75, 000 military either active or reserve or retired here in Jacksonville throughout the greater Northeast, at least in Duval County, we have about 75, 000 people.

And even as they retire, some of them, you know, they're retiring at a younger age or what have you, hire them, hire them. First and foremost, hire them because they could be coming off duty from situations that we were not aware of, hire them. The next thing is if you're investing, invest moderately, three bedroom, two bath, invest in a key location, so the 2524 and 46 zip code is closest to Mayport, 404 and Oakleaf, invest in them, make, I'm not saying to lose money, I'm saying to make wise investments where if you get a 2, 000, let's say their basic housing allowance is 2200, and they have 240, you know, Whatever they've got to the rent is two thousand the utilities is 200 They can live a little bit more comfortably because they can split that money up and pay their utilities and pay You know, they may have four kids.

Well, the kids will have to bunk. Yep You know military families have animals too. We're normal, you know I'm not saying being lenient but understand like Hey, we struggle just as much as the next person except for, you know, as a spouse you're serving with your spouse and your family. And we just have different dynamics, right?

And be understanding of those dynamics. If you can invest, I have, I know of a gentleman that has never changed, it's 1600, and he has a townhouse, and he's never changed a price. But he gets people for the three years that they're here. It may be where yeah, 

[01:05:01] Tracy Hayes: yeah, three year lease 

[01:05:02] Elaine Morgin: is beautiful in it Well, you can do two years and then they can go month to month, right?

But yeah, I mean you 

[01:05:07] Tracy Hayes: that has someone in your house for three years. Yeah, especially so yeah, I think that I Don't know is this dispute an assumption. I mean you're you're enlisted personnel. They generally Probably take care of a lot of the, yeah, they're not calling in the middle of the night. Yeah, they 

[01:05:23] Elaine Morgin: deal with it.

Yeah, people are people and when my husband deploys the whole house blows up. So, you know, it's just normal things from a pipe leak to whatever else we've had in that house, but But that being said, when you're going to invest, like, realize that the military is here, spend the money and do it. And buy, you know, I'm not saying buy a shit shack, but buy something decent, you know.

A three bedroom, two bath is ideal. And then, if you're a military family, think about it. You can keep your homestead. You cannot homestead in another state. But you can go downtown, turn in your orders, you can leave on your orders, and you can maintain your homestead and rent your home out. That's huge. And if you plan to stay.

[01:06:05] Tracy Hayes: If you're on order, so you get sent to Japan. Mm hmm. You could still call this a homestead here in Florida and you might not come back for, 

[01:06:13] Elaine Morgin: who knows. Yeah, as long as your order's maintained and updated. Through the property appraiser's office. You're fine. If anyone needs that website 

[01:06:21] Tracy Hayes: nice little nice little tip there for those For our military personnel that will obviously want to invest in property and put a renter in there to cover their cost We make a few bucks Yeah And when they're not here in country and 

[01:06:32] Elaine Morgin: like what I tell a lot of people is you know still budget that you're paying that Mortgage still budget like you're gonna pay it have a separate bank account let that money funnel in there and pay yourself back, you know as you need to Get a property management company because the hardest thing is not having that.

But yeah, I mean, state of Florida makes it beautiful for us. You can rent your home out and maintain your homestead. And then if you want to buy in Florida, now you have your portability as if you were living here and you can move 

[01:07:01] Tracy Hayes: back and maybe you don't want, you're ready to. Buy a bigger house or whatever you're 

[01:07:05] Elaine Morgin: trying, and you can show rental income with the VA loan so that rental income can be used as income to help you.

And so, for example, my husband and I, if we were to rent our house, we could go wherever we still have 425,000 of our VA eligibility, right? So we can use it again, right? And make money, right? And so we call our first, like this house, now, our collateral house because we hold a heat lock on it and we're able to invest.

[01:07:32] Tracy Hayes: You're leveraging its equity to do with it. So anyone listening and saying, I'm still listening, or maybe we pull this out in a shorter video clip You know, some of these properties that are near the basis that maybe they need a little TLC, but their home runs and immediately having a renter in there as soon as the house is brought up to speed and getting that solid, whatever, you know, two grand, 2200, whatever, you know, and you, you will find these properties for investors who may want to work with you because you're, you're looking, you're looking at these properties for yourself, but you got investor calls.

Yep. Say, I'm looking for a good investment property. I want to stick an active duty in there and, Be good with it, you know, some of these properties that they can 

[01:08:12] Elaine Morgin: get into a lot of folks are investing in downtown Which I respect but military is not gonna go downtown. We're not gonna do it You know a lot of military families have one car, you know, maybe they're running all over at Mayport and NAS and make it very nice to have it all local but one thing I want to touch on is before we wrap this up is the Assumptions.

Yes, 

[01:08:33] Tracy Hayes: we didn't, that's a good 

[01:08:34] Elaine Morgin: point. Yes. So, we're hearing, oh, you can assume it, you can assume it, but the assumption part could take up to 120 days. I don't think that bothers a lot of folks, but you're assuming it at what they owe, right? So that, oh, versus market value could be vast. So as we were talking Nothing against anyone else, but if I'm military and I want someone to assume my loan, I can get my entitlements back if it's VA to VA.

I cannot get my entitlements back if it's VA to civilian. So, that's important because if they foreclose, you lose those entitlements like you're done. It's all gone. You know? So that's important to understand and also to understand that the secondary loan. You don't know how much it's going to be and it's at the market of The current interest rate so even knowing assumability sounds beautiful Yeah, you might be risking owing or having more money and then as a military family You might as well go and purchase at the current interest rate a house that you can afford in your budget or just above your budget and refinance into something, not that assumabilities are bad.

I think if, like, if you were selling a 

[01:09:44] Tracy Hayes: home up in Norfolk and coming here and you had that gap, of cash to assume someone's VA loan because you have the cash to make the difference. The important thing is getting with the right real estate agent. Yes. The important thing is getting with a real estate agent that's going to evaluate that, look at what you have, look at what the situation is and whether that really makes sense because I think a lot of people, yeah, they hear assume, but they don't realize.

Well, if I'm selling the house, I'm not just selling it for what I owe on it. I still want to sell it for what it's worth, you 

[01:10:15] Elaine Morgin: know. You want to make money. Yeah. 

[01:10:17] Tracy Hayes: Everyone does. Well, yeah. Why would you, why? Cause you could turn around and sell it to right now. Cause the demand, any buyer at its full, someone's going to buy it at full price and you're going to make that extra 100, 150, that whatever that equity thing is in it.

You don't want to leave that on the table. That's your money. Yeah. 

[01:10:33] Elaine Morgin: And also like The assume, like assuming it's taking quite a long time, right? The VA has to decide if they're going to do that. 

[01:10:40] Tracy Hayes: that they got it, we got to go to the servicer. Who's ever servicing that mortgage.

And then ultimately the VA has to stamp it too. 

[01:10:45] Elaine Morgin: Yes. Yes. And the servicer has to really say, okay, I'm okay with this. And that's up to them. And then you have to get another loan. You have to get qualified for. Either a HELOC or a secondary and the secondary could be more it could be, you know It could be like we were saying like 

[01:11:04] Tracy Hayes: well, they're in none of them are gonna go to 100 percent No 

[01:11:07] Elaine Morgin: Yeah, you're gonna have 

[01:11:08] Tracy Hayes: to have 

[01:11:09] Elaine Morgin: some sort of down payment Yeah So when we talk about it won't come in at a hundred percent we're talking about that there you can't go and get a VA at 100 percent and You can't do a secondary at 100%.

So you're going to put out money if that. Now, if it was a family member and they were assuming, you know, that could be something different. But that's not the realm we're in. The reality is, is that you're still going to have to bring money. Which, and I told you this, I was like, man, if I could figure this all out.

Yeah. it's what's going to pave the way. However. It's not going to pave the way, it would maybe pave the way for a retiree easily, you know, but you still have two mortgages, you know, so you got one potentially at seven and you got one at two. A seven 

[01:11:55] Tracy Hayes: would be a really great interest rate for a second mortgage.

Right? Yeah. Right? What are we saying? I would say more like eight to 10 is probably going to be your area for a second or 

[01:12:05] Elaine Morgin: HELOC. Yeah. Yeah. So, I mean. I had $60,000. That's not cheap. Mm-Hmm. I 70, a hundred thousand. That's not cheap. that is Well debt. You don't need to accrue. 

[01:12:15] Tracy Hayes: Right. Yeah. You need to do the math is like, do I, do I just get one loan at six and a half and I gotta bring money to the table, you know, and wait 120 days.

Hopefully they approve it or I just, you know, or did I did that reverse? Do I do just one loan at six and a half and close in 30 days? Yeah. Or less. Or do I get the 3 percent mortgage and the 8 percent mortgage, maybe it gets approved, maybe it doesn't, 120 days go by, your seller's not going to, because by now they've already got other offers in where someone's on a conventional loan or a VA who's willing to just go 

[01:12:48] Elaine Morgin: 100 percent again.

Yeah. And I really think that it's going to happen like the FHA where like the assumability, well maybe not because FHA, people were able to assume a different. Type situation, but after the recession FHA is like, yeah, we're not going to do that. Well, I think 

[01:13:05] Tracy Hayes: because of the demand you know, I, I think my in laws, they bought a house where they assumed an FHA loan and they actually stayed in it 30 years and paid it off.

Right. And obviously you don't have that situation anymore, but at that time you know, the. The value increase probably was very stagnant. Now, those people who did, when 3 percent was around, 2. 5%, as you know, some of these VA loans are at. And the demand is so high, the values have gone up so much that you really, you know, you got 100, 200 more on some of these houses over the last two years, depending on where they're 

[01:13:42] Elaine Morgin: located.

Yeah. Yeah. And I'm going to say what a lot of people are saying, right now is the right time to buy. Just buy, because you're going to have the time to look, you're going to have the time to really decide what you want, and it's not going to be, 

[01:13:56] Tracy Hayes: like, Well, it is the time to buy, because I think if you look back, if you bought a house in 2005, and lost value in 6 and 7 and 8, and you still, say you're renting that house, or you still live in that house, you now have significant equity in it.

So, if you're looking for a short term, You know, turnaround, maybe not, but if you're looking, Hey, I want to, I want to buy a house and rent it to an active duty service member for five or 10 years, you're going to turn over a profit there of significant equity, because it's just going to, especially the, these homes, I think the treasure, would you agree or disagree the treasure isn't some of these fixer uppers to go get a renovation loan.

Fix that puppy up and then turn around, rent it out for the next five years. Yeah. 

[01:14:40] Elaine Morgin: Well, make sure that you're coming back. You know, it's your primary after two years, so you can kind of play the capital gains game. Because we've got to, you know, we don't want to be taxed too much when we sell it, but you kind of go back and forth.

But yeah, I tell all of my buyers look at the ugly pictures because ugly pictures are going to be on the market longer and they're usually treasures. That's what my house 

[01:15:02] Tracy Hayes: where you're going to get the smoke, more significant upward growth over time. IRS tip. If I read this correctly, I'm going to put that star in here.

Cause meanwhile, if you buy a place you want to renovate, And you sell it within 12 months. It's it's just like you getting a commission check at 1099 as your income. You don't have capital gains on that. So because we were looking at my wife's like, Oh, we're going to, we're going to have capital gains.

We're going to need to reinvest in all this other stuff because we're doing a little fixer upper and I researched that. So the IRS has helped itself out by saying, well, if you flip it within 12 months, you're just going to have regular taxable. It's well treated like a 1099 that income. So.

You're putting, yeah, I made 50, 000, but I spent 25 and fixing it up, right? So you're putting that on your tax return. that was an investment, but you're not getting capital gains until after you've owned it or the 12 months. Wow. You can double check the IRS on there, but I read it in several different places because we were doing the same thing.

[01:16:02] Elaine Morgin: But it's, it's, the renovation loans are nice. They're, there's something, they're a little hidden gem in cells, but. The idea is like people don't want to get the quotes and the that's the pain. Well, that's where 

[01:16:13] Tracy Hayes: Top agents come in because you've got the contacts. Because I, I think right now in this time, being creative, getting that, maybe that extra sale every couple of months is, Telling say hey, I got a renovation.

I got a great guy solid crew. I know they're got a history They're gonna show up to work They're gonna they can go in there and give you a number and I know they're and if they tell you they're gonna get it Done in 90 days. They're gonna 

[01:16:33] Elaine Morgin: get done in that. Yes. Yeah, true, but I will say God, I just wish I could make that the assumptions actually be something of relevance because They would be great.

[01:16:46] Tracy Hayes: there's people smarter than me, obviously in the banking world. And I, you know, you and I have these ideas that come in and how does the compliance and the CFPB and all these other people come into play, but at the VA actually stepped in knowing they know how many 3 percent loans are out there.

They know that number and they know the, the statistics of the, the active duty moving around especially and, and the other veterans using it, that the VA actually created some sort of, or are willing to, some sort of program that they were willing to back it up because it's, it's the lending institutions that are taking the risk on that second.

And should someone fail, it's the second that gets screwed every time. Yeah, 

[01:17:24] Elaine Morgin: it kind of like makes me think of. Subprime loans and bubbles and 

[01:17:29] Tracy Hayes: I mean, if they, if they came out a second, even then went to 90%, you know, for, and then maybe even capped it at 200, 

[01:17:35] Elaine Morgin: 000 or something, they, your entitlements could be more.

If you 

[01:17:40] Tracy Hayes: have entitlement, you can, you know, utilize that or some sort of, I think that would be a home run and that would be a walkthrough. And I think we'd see them, but I think it takes, it would take a lot of I think there's investors out there for it. I mean, there's investors that want to lend money.

I mean, there's, that's what they do and it's how they make it and to, to have the VA back some sort of, if that's even possible, I don't know. That's not what's, but it's outside my pay grade on that one, Elaine. Awesome having you on. I hope some people listening to this, some agents out there which we know there's, there's still quite a few who just have misconceptions of the VA loan.

Maybe there's some your husband shares this throughout the web and the Navy. There's some people that are looking to come to Jacksonville, know that you're. The expert here in what service you're gonna deliver to them. Cause I know you, I know you get a lot of probably emails from people that are deployed and saying, Hey, I'm getting transferred to Jackson while my wife is in Washington state.

Can you, yeah, that stuff goes on 

[01:18:35] Elaine Morgin: all the time. And if anyone needs help, I don't, you know, real estate doing this is just my job, right? But it's my passion is to help people and to get out there and. Give you the right information. You know, I, my hardest day is when I have to explain to them the items that they weren't explained, the items that they weren't taught, you know, how important it is to make sure your homestead, if your homestead, you know, you can make money on that house, you know, all the things.

Yeah. Little tips like that. It's just so important. 

[01:19:06] Tracy Hayes: Well that you're not just for the sale. Yeah, you want to be hopefully, you know anything else they do in the area or if they do want to move somewhere else Hey, can you refer me an agent and whatever you you'll do that? But even that little to oh, we're hey, we're getting deployed to Japan What should we do at the house and you're able to sit down and educate?

So well if we rent it out This is what's gonna happen. We sell it. This one's good. 

[01:19:27] Elaine Morgin: Yeah Yeah And I and I love doing that for people and I love being part of people's finance Ideas and and questions and being a part of their families. It's more than just real estate for me. Yep.

100 percent I 

[01:19:39] Tracy Hayes: appreciate you. We'll put all your contact information We'll be in the show notes and obviously I'm gonna put this over on Facebook on your page, too Thank you. So everyone be able to tap in and share it and so forth. So 

[01:19:49] Elaine Morgin: appreciate you. Thanks coming on. You're welcome 

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