Have No Fear! Strategies for Realtors/Agents

Video Transcription

Jared Wright: Hey everybody. Jared Wright back to The Share Group podcast. Don't really have a creative name, but we're out here producing some content. And special guest today, very near and dear, knows me longer than many, is my dear friend Ryan. What's up, dude?

Ryan Prisco: Hey, good to see you, Jared.

Jared Wright: Ryan Prisco and I graduated from high school. It's BI, so most people say before Christ, but I do BI, before the internet in the '90s. We'll stop there. But yeah, Ryan, thanks for joining us in this conversation. A lot of what we do here is try to produce content for our customers, and our customers are in that real estate industry. So if you don't mind, man, just tell us what you do.

Ryan Prisco: No, absolutely. So I am a direct lender, been a lender for 22 years, both residential and commercial real estate finance.

Jared Wright: Yeah. So that sums it up in a powerful, bold statement. So 20 plus years of real estate financing, both commercial and residential in the mortgage space. So that's why I grabbed you, Ryan, and wanted to talk with you. So with what's been going on with agents for a long time, it was like the Wild, Wild West the last 18 to 24 months with the housing market. Well now the interest rates have increased, and so I thought it'd be a good time to pull a mortgage expert on and talk about what are you hearing from your real estate partners now? What is some advice that you could maybe offer for these guys as they're out there trying to find their way into real estate?

Ryan Prisco: Well, absolutely. I'm glad you brought that up. I actually five days ago, had a conversation with a really good realtor partner that I do business with, have been for many, many years, actually several decades now. And she was frustrated where she had a listing that was on the market for 80 plus days. In this current market space, and-

Jared Wright: Isn't that crazy?

Ryan Prisco:  ... she really thought about that she had to regress the price, that I'm going to have to lower the price. And the seller was adamant that, "No, this is my price point. I know the value is there." So I had a conversation with her and I said, "Okay, well in your expertise is the value there if you know were to go into escrow with this price point?" And she said, "Absolutely, the value is there." But I said, "Then why do you want to regress the price?" And she just, "I just have no activity on this." And I said, "Well, let's look at it this way. Call the seller, talk to the seller and say, 'Look, we'll give you your price point at the value it is, but to entertain some buyer activity, let's throw in a concession. Let's throw a $30,000, $35,000, $40,000 concession but you keep the price point as is.'"

You get the buyer in there, we're able to get the buyer a lower interest rate. So the buyer actually has the affordability for the house, likes the house. And I put together a total cost analysis for the buyer to show if you use your own funds to do this, the recapture cost is going to be significant. Now, if you get a seller concession, use the seller's money, lower the interest rate, you're going to save yourself $500 a month and you're going to save that capital in your own pocket going into the property.

Jared Wright: And I heard this is as cheesy as I am and as deep as I am in the mortgage space. I mean, that was a really good description of what you're able to offer, and the picture with an actual circumstance is really cool. What I saw, like Dave Ramsey saying is now is the time to buy, even if the interest rate is a little higher, because that property value in most cases will never be lower than it's now. Maybe that interest rate will be lower. So I thought it was just a really good advice that if you're still looking to buy or sell your real estate, it's still a really good time to do so.

Ryan Prisco: No, no, absolutely. And my whole approach going into an escrow is, I want to win. I want my realtor partner to win. I want my buyer to win. How can we win? What's the strategy? Let's make this happen. And in this instance, the seller won. He got the price point. The buyer won. The realtor won. I won. It worked out.

Market Strategy Changes with Time

Jared Wright: But do you think now, because the interest rate has gone up now more and more, you kind of have to find a way to win?

Ryan Prisco: Oh, 100%. I think it's all strategy. Buyers and mortgage professionals, we can't do business the way we were doing business 10 years ago.

Jared Wright: Right, right.

Ryan Prisco: It's a whole different market strategy, marketplace.

Jared Wright: Totally. I have these preconceived notions even as a homeowner what type of loan I can get or what availabilities I have. And a lot of it is over overwhelming. Even the word overwhelming is overwhelming. But the truth be told that there's a lot of things that have changed over the last few years, even the last couple of months, that utilizing someone like yourself is such an advantage because you are up to speed with the what's going on and how to ultimately win for the client and for everyone involved. So that's pretty neat. What would you offer some advice to a real estate agent now trying to go out and find listings as a mortgage professional? That's a pretty broad question, but...

Advice for Real Estate Agents

Ryan Prisco: From the street, from what I heard, sellers want to sell. They definitely want to sell. The best strategy that they can put together is how could they market the house to sell but still have a profitability standpoint in the sell? How could they structure that? I think that's the formula that they need to be aggressive with.

Jared Wright: All right.

Ryan Prisco: Because-

Jared Wright: So talk. Yeah, I want to hear.

Ryan Prisco: I think there's more marketing of the property that needs to be done. There has to be an attraction for a buyer for the property. The seller also has to be realistic. You have that water cooler talk like, "Hey, my friend so-and-so six months ago got $100,000 just over asking." That doesn't exist anymore. So I think a lot of sellers need to come back to reality in this marketplace too.

Jared Wright: Well yeah, and now sellers aren't selling just to monetize. They're selling because maybe someone died or they're getting older and they want their master bedroom on the main floor, or they're relocating for a job. So there's still going to be people that have to sell. It's just not going to be because of, dude, I made $100,000 or I made... Yeah, it's beyond that. Now there's got to be some value behind it, like you said. Increased marketing, more touches. I said this on our other podcast too, but I think I saw you have to touch someone 18 times before they're going to make a decision to meet with you in person. So there's a lot that goes to the point of what is the strategy of the realtor beyond just calling someone that might be interested in selling.

Ryan Prisco: Correct.

Jared Wright: Yeah. All right, dude. What else you have to add? One more thing. Give me Ryan Prisco's tip of the quarter, tip of the rest of the year, whatever. That can also get naughty right there, but I'll keep it PG.

The Downside of the Housing Market

Ryan Prisco: No problem. No, I'm sure you've been hearing this. It's everywhere. Fear. Fear is everywhere right now.

Jared Wright: Yeah.

Ryan Prisco: Yes, the housing market is slow. There's higher prices. There's higher rates. But this market is different than any other market I've experienced in 22 years. A lot of people are trying to correlate this market to 2007, not even close. 2007, we had over supply and less demand. This market, we have less supply, less demand. So they're two different animals. And then there's fear of recession. But the fear of recession, it's some people will be affected. Absolutely. But housing stays strong in recessions. History has shown a decrease in interest rates throughout all recessionary periods. So the media, people need to just stop listening to the media. They need to consult an expert in the field, a professional in the field, educate themselves, whether it's through publications like The Economist, Barron's, Kiplinger, The Wall Street Journal. Just take the time and educate yourself because...

Jared Wright: That's so funny. No, it's so true, man. And I think some advice that I always try to lead by is yeah, don't listen to the news. Be involved in your community, your market, understand what's going on. Because it could be different in California than it is in Nebraska. But yeah, be an expert in your own space. I think that's really good advice. The no fear thing. I mean, you and I had no fear t-shirts back in high school. At least I thought I had one, but I think I was a little bit more husky that I couldn't afford the XXXXL tee.

But no fear is true man. And I think the cream rises to the top in these situations that more than ever you have to find that value. And there's no more snake oil salesman, dude. It's provide something that you're going to do and do it. So I appreciate your taking the time, Ryan, to wrap with us. Dude, I'm going to stop the recording, but I still want to chat with you, old high school days and shit. But thank you so much, Ryan. Do you want to say your company information? How does anyone that we have that would like to partner with you? I know you're licensed in 12 states, so how do we get ahold of you?

Ryan Prisco: Very easily. I'm with Finance of America Mortgage. I'm also on Instagram. Your lender RP can connect that way as well.

Jared Wright: I love it.

Ryan Prisco: And all over Google. So-

Jared Wright: Yeah, Google that dude. He's good looking. And that's a leather wheelchair he's in. But anyway, we are telling our refs to be more Instagram involved and so there's some value behind that. So we'll definitely share your Instagram information when we post this bad boy. So thanks again, Ryan. Much love, dude. We'll talk soon.

Ryan Prisco: No, my pleasure.