Secrets to Finding Off-Market Property Deals Revealed!

"Navigating Today's Real Estate Market: Insights for Buyers, Sellers, and Investors"

If you're considering diving into the real estate market—whether as a buyer, seller, or investor—you may feel a little overwhelmed. Rising interest rates, affordability concerns, and competition can make it hard to know when and how to make your move. We sat down with Faith Barrett, a real estate expert, to discuss opportunities in today’s market and how to strategically position yourself whether you're buying your first home or looking for your next great investment.

Let’s get into some key takeaways and practical tips.

1. The Current Market: What’s Going On in Real Estate?

The real estate market is complex right now. While many are hesitant to buy because of interest rates, there are still opportunities to be found, especially in areas like Shasta County, which is one of the most affordable places to live in California. Faith advises buyers to focus on affordability rather than getting hung up on interest rates. Trying to "time the market" and waiting for rates to fall could mean missing out on the right home, as a lower interest rate is likely to bring more buyers off the sidelines and create fierce competition.

Instead of trying to predict the future, buyers should find out what they can afford comfortably now and work toward that. Whether you’re a buyer, seller, or investor, the question is simple: What makes sense for your situation today?

2. Maximizing Affordability: Start Preparing Early

Affordability is a challenge for many buyers right now, but there are ways to prepare for a future purchase. If you're worried about affording a higher mortgage payment, start by taking practical steps like:

• Reducing debt: Pay off high-interest loans or credit cards.
• Boosting savings: Set aside a "practice" mortgage payment each month to build your savings and see how it feels to live with that expense.
• Improving your credit score: A higher credit score can lead to better loan terms, so every little improvement helps.

Faith suggests that buyers start these habits now, even if they're not quite ready to purchase, so when the right opportunity does come, they are prepared to take action.

3. Sellers: Realistic Pricing is Key

For sellers, pricing is everything right now. It’s important to recognize that today's market is not the same as the red-hot market of 2021. While inventory is low, buyers have more room to negotiate and shop around. Faith mentions that sellers who are motivated by necessity—whether due to a job change, downsizing, or upsizing—are more common than those casually listing their homes.

To stand out, sellers should:

• Price realistically: Don’t rely on outdated market conditions to set your price.
• Focus on presentation: Improve curb appeal, keep the house clean, and declutter to attract buyers.
• Work with a strategic realtor: A good agent will market your property effectively to get maximum exposure.

4. Buyers Have More Flexibility—Use It to Your Advantage

If you're in the market to buy, you currently have more flexibility than buyers did just a couple of years ago. The ability to negotiate closing costs, get credits for repairs, or even have the seller buy down your interest rate is more common now. Faith emphasizes that this means buyers can make more informed and thoughtful decisions, rather than rushing in with competitive offers just to secure a deal.

Tip for Buyers: Determine what’s more important to you—lower upfront costs or a lower purchase price—and structure your offers accordingly. You can’t always have both, so weigh the benefits of closing cost credits versus lower monthly payments.

5. House Hacking: Creative Ways to Buy and Build Wealth

House hacking is all about reducing your housing expenses and creating income streams from your property. Whether that’s by renting out a portion of your home, adding an accessory dwelling unit (ADU), or buying a multi-unit property to live in one side and rent out the other, it’s a great way to offset your mortgage.

However, Faith points out that while the idea sounds appealing to many, it requires a willingness to be a landlord. This means understanding the responsibilities of property management, screening tenants properly, and being ready to handle repairs or issues that come up.

Advice for Aspiring Landlords:

• Screen your tenants: Use platforms like apartments.com to vet applicants thoroughly, including credit checks and background screenings.
• Establish clear terms: Be strict with credit score requirements and rental policies. If you don’t want to handle the day-to-day issues, consider hiring a property manager.

6. Flips and Investment Opportunities: How to Find the Right Deals

Finding a great investment property often means looking off-market. By the time a "deal" hits the MLS (Multiple Listing Service), multiple eyes are on it, and competition drives up the price. Faith suggests making connections with real estate agents who are familiar with your target area, as they often have the inside track on opportunities before they go public.

Additionally, be aware of specific conditions when buying properties owned by banks or as part of foreclosures. For example, some of these properties are restricted to owner-occupants for the first 30 days, limiting investor competition.

If you’re ready to do the work, there are still good deals to be found in up-and-coming neighborhoods, distressed properties, or areas ripe for redevelopment.

7. Real Estate for First-Time Buyers: Thinking Beyond Your "Dream Home"

For first-time buyers, it’s tempting to focus on finding the "perfect" home. But Faith emphasizes thinking strategically—especially if you're hoping to build wealth through real estate. If you’re able to detach emotionally, buy a starter home that could be turned into a rental property later on. By staying flexible and being willing to move every couple of years, you can build a portfolio of properties without having to put 20% down each time.

The key is not to get stuck with your first purchase. If you’re planning to grow your investment over time, keep your options open. Buy a home that makes sense financially and move up when it’s right for you.

8. New Construction Tip: Be First In

If you love new construction, Faith suggests being one of the first buyers in a new development. Homes purchased earlier in the process tend to appreciate more than the final homes sold. It's not just about the shiny finishes or custom selections—it’s a strategic move that can build equity quickly.

For example, Faith shared how buying their new construction home early in the development meant a significant jump in value over time, with little need for upgrades or improvements.

Final Thoughts: Opportunities Are Everywhere—If You’re Prepared

The real estate market is always shifting, but there are always opportunities for those who are ready. Whether you're a first-time buyer looking for a great starter home, an investor searching for your next project, or a seller navigating today's market, preparation and planning are key.

Don’t wait for the "perfect" time; focus on what’s right for your situation now. Work on building your savings, improving your credit, and most importantly, start building relationships with knowledgeable real estate professionals who can guide you along the way.

Transcription

The transcription is auto-generated by a program and may not be accurate to the conversation. To ensure you get all the information from the video properly, you must watch the video.

Pete: What's up, guys? Thank you so much for joining the podcast today. We have today Faith and Dylan Barrett, their real estate team.

Pete: We had Faith on our podcast today. We talked about some really, really good content for first-time home buyers, investors, their investors themselves. They are in the ADU or in-law unit space and have done that quite a few times.

Pete: You don't want to miss this episode with Faith Barrett from the Barrett real estate team. Thank you so much. And if you haven't done already, I would love it if you could like and subscribe. It really would help me out and help get this content out to more people. Thank you so much. Cool.

Pete: Faith, how are you?

Faith: I'm good. Thanks so much for having me on your podcast.

Pete: Yeah. Yeah. Thank you so much for, for being here. I've, I've watched you throughout the years. I think, I think when I first saw you get it, get into the business was like maybe 2015 ish.

Faith: Dylan and I've been in it collectively for about seven and a half years. And then I was one year after Dylan. So I've been in about for six and a half years. So whatever that is on math paper.

Pete: Yeah. And we're going to get into all of that. So I want to introduce you first.

Faith: So please don't mess up my introduction. I said, please don't mess up my introduction. I'll do my best.

Pete: I'll do my best.

Faith: It's really profound.

Pete: We've got Faith Barrett. She's a local real estate agent here in Redding, California in Shasta County. And, um, her, she's, she has a team of realtors that work and her and Dylan, your husband worked together as a team. And you guys have built up quite a big team. How many people do you have on your team?

Faith: Um, we're kind of like a little bit more of like a small scale, but we have, we currently just added another person. So we have five full-time agents underneath us and then two admin staff. So okay.

Pete: Two admin staff. Small and mighty. Five.

Faith: Yeah. Small and mighty.

Pete: I like that.

Faith: I like that.

Pete: And so those five, those are buyers, full-time buyers, agents, full-time. Both.

Faith: They do both.

Pete: Okay, cool. All right. Awesome. Career highlights. You put none, but I'm going to, I'm going to kind of share a little bit. So, so, uh, I looked up faith and, and I looked up your, your number of families that you've helped and all of that in the last 12 months, you've did about 119 total family, uh, total size. I should say a lot, a lot of families working really, really, really hard. That's a lot, which is like number three in all of Shasta County for the number of deals or number of transactions, helping a lot of families out. So that's super, super. And you guys have grown quite a bit every year. You guys, you guys are doing a lot. Um, current projects and focus, our marketing really sets us apart. Um, so you guys, you guys, your marketing really, really does. I want to highlight that because your guys' marketing is top, top notch. I, I might hopefully take some notes from what you're going to share with us on the marketing side of it, but you guys have a really, really good following on Instagram. You guys should check her out, check them out at the Barrett team on social media.

Faith: Three T's. Didn't really think that through when I made our group. So it was like the Barrett team, three T's.

Pete: Three T's and, uh, I, I have you guys on, on Instagram and that's primarily, is that in your main channel?

Faith: Yeah. Main channel. And then right now we're, um, have been really stepping into YouTube and that's just been a whole nother world. So yeah, we do the podcast, we do Instagram, Facebook, YouTube, Google. Um, yeah, yeah. So there's a lot.

Pete: Okay, cool. Um, passions, passionate about supporting a local business, which we can definitely see that I can definitely see that through your guys' channels. Passionate about setting people up with financial wealth through real estate. Super awesome. Um, and I would like to talk a little bit about that too, because I know you guys are doing some really cool stuff with some ADUs and stuff like that. Okay, cool. And then, yeah, I think that was it. Uh, so it's, it's you and Dylan. Did you guys grow up here in Redding?

Faith: Yep. Born, raised here, lived here our whole lives. Um, so this has kind of always been home for us so I can officially brand myself as a Redding native. Um, yeah, so it's, it's our pride and joy.

Pete: And how did, what, what made you guys get into real estate?

Faith: Yeah. Um, so my husband, well, Dylan, um, was in real estate, actually started in Dutch Bros. Everybody I feel like that lives in Redding probably works at Dutch Bros at some point in their life. Um, so he was in Dutch Bros and was going to be working towards franchising. Um, we got a couple of locations on our radar of potentially of something that could have worked for us. And it just was in an area we ever really saw fit to live as a family, like Stockton and everything like that. And I was like, so we pivoted and I was still in nursing at the time. Um, I still have my nursing license and, uh, he got into real estate. He kind of grew up with real estate as his background with his parents, flipping doing investment properties. So he was always around real estate and I was kind of more traditional, go to college, get a degree, kind of get a stable, you know, salary job. So from that he got into real estate, uh, solely focused on commercial, which if you are in Redding commercials, very hard. Um, there's a very handful of people that do it really well at a high level, but to just kind of like step into the commercial field, it's a little bit more challenging. So after that I was like, we should really do residential. He's like, as residential, it's too emotional. And so I was like, well, yeah, he's very black and white. He's like, I like numbers. I like to see if the thing makes sense on paper. And I was like, well, I like emotions. I like to like, you know, the highs and the thrills of buying a home. And so, um, yeah, basically it was like, well, what if I step into it? And so while I was working at the hospital, I got my real estate license. And then we kind of, um, worked towards building a real estate, you know, career. Um, eventually three years into the business, I stepped out of full-time nursing. Um, so I was kind of dying every single day cause I was doing three twelves and then full-time nursing or full-time real estate. And then we kind of just transitioned that we could really, you know, build something and be sustainable with where we were at with growing the business.

Pete: So, wow. Yeah, no, that's, that's awesome. So three years in you start, Dylan started and he, I didn't know that he, he wanted to start in commercial.

Faith: Yeah.

Pete: He actually was always in commercial. We actually started out with a properties by merit, um, um, with John's gave, he was such a great start to Dylan's career, really took him in and really kind of gave him an idea for commercial world. Um, and then from there I joined and kind of started the residential side and then it was like residential picked up way significantly faster. And it was kind of like, well, at least we have that knowledge. We have that notch in our belt to understand commercial, but it's not like our priority. So we focused a little bit more on residential, which was what was selling at the time.

Pete: So yeah, that's, that's super awesome. Well, okay. And so then now, so fast forward to 2024, you guys have a team of five and you guys just moved into that building where venture used to be, right?

Faith: Yeah. So venture kind of, um, Aaron was our broker at the time. Um, he transitioned everything over to real brokerage and then we got kind of the opportunity to buy the building. And so we bought our, actually our first commercial building, um, the beginning of this year. I still don't understand the whole SBA side, but, uh, so yeah, we bought our first commercial building, um, which has been really cool as part of our investment journey just cause it's two stories. So we actually have a tenant underneath and we're kind of making residual income from it.

Pete: So very cool.

Faith: Yeah. Awesome.

Pete: Cool. Well, I got some questions here that I want to hit. Um, yes, let's see. I'm going to pull them up here. Okay. So the real estate market this year, you guys are still crushing it. And so, um, what are your thoughts just on the overall Reading market? And it's real estate, real estate.

Faith: Um, I'd say it's complex right now. Um, I definitely think that there's opportunity if you see it. Um, and there's going to be opportunity that people are going to win. I think just in any market, like post COVID, everybody was freaking out, pulling out of deals, or even just during that height, everybody, I remember when we were on vacation, it was like at the height of when COVID really hit everybody was backing out of deals and like, this is going to be the end of the world, et cetera. And then fast forward post COVID it's like all the interest rates dropped and home appreciation went through the roof. And so nobody would have predicted that. Um, so I feel that there's always that person sitting on the sideline, hoping that they can time the market, hoping that they can get the good deal. And I always am just like, at the end of the day, like what's the affordability for you in the market? If you're focused on an interest rate, you know, and you're wanting to get down to 3%, you're basically saying in some regards that you're hoping that another pandemic happens because, or something catastrophic happens to get us to that point. So I'm really on, in all honesty, with all the buyers that we work with or the sellers that are upsizing or downsizing, it's like, what does that new affordability look like for you? Um, and can you find that affordability in this market? And if so, you most likely are going to get probably what feels like a better deal in terms of compensation towards closing costs or buy-downs, um, to wait, if it versus if they were going to wait, because even with in the beginning of the year, when we saw just a little flux downward in interest rates, it all of a sudden just like irked out like all the buyers to be like, okay, I can like afford a little bit more and now I'll go after it. And so I kind of find that it just comes down to, for me, the affordability in the market. And I think it's still a great opportunity. I mean, we bought our commercial building, I mean, and you know, found a way to make it work that, you know, still pencils out.

Pete: So yeah, yeah. The affordability right now has been a huge challenge for a lot of buyers, a lot of people out there that are wanting to buy. And there is a lot of demand. In my opinion, like I do see a lot of people that do want to buy a home. And like to your point is for them to find their affordability range of where that is. And also to match that affordability with the home that they realistic expectations.

Faith: And I always tell people like, I'm like, if you're not in the realm of feeling like this is an affordable market, then make, make positive changes in your life to get it to that place that's affordable. Like so debt reduction savings. Um, how can you simplify your life? Just cause I think most people are like, ah, it's too expensive. I'll just keep living on with my life. And I'm like, Hey, when that right time comes, let's just say September is the magical time that the, you know, feds decided to cut maybe the interest rates just a little bit. It's like you might be sitting now on the sidelines watching the whole train go by because you weren't ready in preparation. So.

Pete: Yeah. So, so the, the, the amount of people I think in Shasta County, cause our average income right now is about that $70,000 range and our average purchase price I think is like 400 or something. Yeah. And so the affordability in Shasta County is actually the most affordable place to live in pretty much all of California. And so I think there's a lot of people that can afford, but just are like, what you're saying is there's, they could save, they could not go to Starbucks and they could, you know, save, you know, here and there and actually come up with an extra five, $600 for that extra, you know, higher payment versus renting or.

Faith: Yeah. Or basically, uh, you know, uh, paying down debt, like in improving their credit score. So they sit as like a better, you know, borrower. I mean, I don't think like skipping Starbucks is going to be the Holy grail that makes you be able to afford a house. Like, I don't think like you have to like compromise your lifestyle. But I think if you're making positive changes to start living within that means at an higher mortgage, it's going to be less of a sticker shock of somebody going from a 1500 payment to a $2,500 payment.

Pete: Yes. So I had clients, um, just a couple of days ago that were, that were scared of making that jump and it was about an extra thousand dollars a month that they were going to. And this is what I told them. And they weren't necessarily in a hurry. Their lease was going to be up in two or three months. I said, Hey guys, this is be a perfect time to pay that extra thousand dollars and pay like a financial advisor or someone or put it in a savings account and just see how it feels. See, you know, and then, and then they'll know exactly if it's going to be tight and how tight it's going to be to see if they can.

Faith: Totally.

Pete: Yeah, no, that's cool. So you're, you're pretty optimistic then for, for Reading, for Shasta County.

Faith: I think I'm optimistic overall because there's a lot of people that want to stay in California. So if anything, as much as people want to like, you know, turn their noses up, we do still have a lot of movement from, you know, people coming down from down South up here. Um, I don't think it's as much of a flux in as it was like post COVID. Um, but I do think that there's a lot of still grounding things that Reading offers for people to want to come back and visit, plant deeper roots, family, you know, lifestyle. Um, and so, yeah, I, I'm positive. I think that overall, I think the caveat is how realistic is the seller for when they bring their house on the market to what the market's willing to pay right now. And I think a lot of sellers right now are still stuck in more of an, it's 2021 this should go very quickly or this is, this should have no issue selling. And it's like, yeah, for sure. But you may not get that initial like reaction right off unless you're like slightly underpricing homes right now to get that artificial high of like, I got multiple offers. It's like, yeah, you did cause you like slightly underpriced the house, you know, to get it, which is fine. It's a great strategy that works if you're in that situation. So I think it's a balance. If the sellers are realistic, I think it's just a, it's a, just a teeter totter. You know, as soon as interest rates go down, sellers are going to ask more for their house. It's just a supply, you know, like that teeter totter. It's just a teeter totter. It's never like, and right now buyers have a little bit of a competitive edge because nobody's selling right now just to make a profit. Everybody's selling right now cause it's some kind of diapers, divorce, diploma, like job changes. Like there's a reason there's a motivation. Nobody's just throwing their house on the market just to see what happens. Trust me. If they are, I'm like, I might wait.

Pete: So what I heard you say is, is that that seller, if someone's selling their house right now, it's not because they're just want to sell. It's because something they have to sell. There's something that is going on that they need to sell.

Faith: Or in some regards, there are some strategic, like I met with a seller this past week and she's like, I don't really need to sell, but like if I can get a better price on my upsize house, but I have so much equity in my current house and I'm still going to make a decent profit out of it, then it's a win to me as long as I can get that, you know, payment as close as possible. So I think that there's, there's strategic sellers and then there's just dead set motivated sellers of like, I have actually a reason I have to sell. Yeah.

Pete: Yeah. I think that's so huge for sellers to have someone there to, to understand because it's not one size fits all. Like, it's not like there's so many dynamics of finance and real estate and everyone's situation is very different. And so what I heard you say is like, this person is a very different situation and, and potentially she does hit her goal of selling and buying and keeping that payment close to the same.

Faith: Yeah. I mean, I definitely think it just comes up with how creative are you on that side or how realistic do you reset their expectations? Like you bought your house seven years ago. Yeah. The interest rates might've been 5% for you, but you only paid the house at 180. Now you're looking at something that's 500,000. So what's the quality of life to what you want to move into? That's awesome.

Pete: That's good. Cool. Um, so this, this could play into kind of what you guys have been working on personally with your finance, but where do you see some opportunities right now for buyers and or sellers like in the real estate market?

Faith: Um, I think it's just, uh, for buyers, I think that right now a lot of buyers, I feel like I'm writing more closing costs into offers. Um, cash to close is less. Um, the idea of, you know, for example, there's this a really turnkey property over on the East side of Reading that I call the realtor. And I was like, you should have offers by now. And he's like, I don't, I have a lot of chatter, but I don't have offers. So I'm like, okay, cool. So now my client might not feel that pressure. They can tie in their closing costs that can ask for the closing costs. So I think on buyers end, there's just a little bit more space to breathe, to feel like they can make a really well thought out decision versus an impulsive decision. Um, so I think, and there's just a lot more conversation with like credits and getting compensation. Or I always tell people, I'm like, what's more important, the price of the home or your cash to close? Like, do you want more money in your pocket or do you want a cheaper house? Cause sometimes with asking that large of a credit, you don't achieve both. If the seller's not that motivated. Um, but for sellers, I would say, you know, again, it comes down to the motivation. If you have to sell, you're going to find a way and do things to improve the house. You know, certain things, you know, like curb appeal, keeping the house clean, like decluttering, those things go such a long way. And I think also it's partnering up who you're going to hire in real estate. Like how are they going to market the property? This isn't, you know, let's go list the house on the market and you know, it'll be gone by next week. You know, it's like, what are you doing strategically? And so I think for sellers, there's a lot of advantage that if you have a good product and it's in a prime area, there is actually like a huge buyer demand pool for good inventory. And the buyers are kind of either bored with the inventory right now, or it's not obviously meeting their demand or they're, you know, taking a little bit longer. So it's like, how can you position your house on the market to be why somebody should go after your house versus Joe down the street, like based on improvements, curb appeal.

Pete: You guys do a great job with presenting the sellers and advertising their home. There's so many properties that go on the MLS and there's like one or two pictures. And it's like, like those houses are like, those are the ones that are discounted because no one's watching that. No one's going to look at it. And someone comes along as, Oh, and it sits on the market for 60 days. But like if it's marketed, like you guys do, if you guys haven't checked out her, her Instagram, definitely check it out. Uh, do good. You guys do a great job on, uh, advertising those homes. And, um, yeah. Yeah. So, so what I heard you say, some opportunities for buyers is they're getting more credits. They're getting their help with their cash to close. It's more comfortable for them. They can, they can really be a little bit more picky let's say for buyers right now.

Faith: Yeah.

Pete: Yeah.

Faith: Yeah. And I think for sellers too, the inventory is still pretty low overall that if you do come on strong, there is a buyer demand pool for it. Um, you know, and if you price it well and you price it accordingly to the market, you should, you know, see those results relatively pretty quickly.

Pete: Yeah. That's awesome. That's good. Cool. Um, so this is a good one. So a lot of buyers nowadays are looking for house hacks or ways to keep their housing payment lower and still take advantage of real estate. Can you share some of the house hacking strategies that you've helped buyers with?

Faith: Um, I think it's just a, too, I think it always comes down that everybody wants to house hack, but nobody actually wants to be the landlord. And so it's really understanding like, do you want to be the landlord? Do you understand what the landlord means? And I mean, if you look online, I think a lot of people get overwhelmed with like the horror score stories of like squatters and like this and eviction and everything like that. And so I think if the person's savvy enough for it, like you can convert your garage, like you could, uh, you know, the garden track, that's kind of like our prime area that we invest in because of the alley where you can add an ADU, um, an in-law unit. Um, you know, if I could do it all over again, not that I, I don't know. I mean, there's there, I know that's one of your questions, but if I, I won't get too far, but if I could do it all over again, you know, in terms of house hacking, I probably would buy something that I can quickly see myself move into live in for a year, turn it into a rental and then move on to the next one and keep building it versus getting so, um, obsessed or, uh, having the idea that I have to like have this, this perfect home, because then you get stuck, you don't want to move. And then when you want to turn that into a rental, you're like, why would I upsize downsize my life to go move into a rental? So anything for multifamily is like a duplex, you know, the traditional, you know, that kind of house hack, live in one, rent out the other. But I think if the goal of it's always lands in two lanes, either a buyer doesn't want to ever become a landlord. And if that's the case and it's a pointless conversation, or if you do want to house hack conservatively, then I'm like, don't buy your favorite house on the market or the one that you're, it's going to be hard for you to move out of. And then if you're a little bit more savvy, then I'm like, try the multifamily route. We love in-law units. The ADUs are super great. Uh, the state stopped giving a grants towards ADU. If you were like a first time home buyer, they kind of obviously ran out of money or they put it on pause. Um, but you know, coming up with creativity with that in regards to, you know, finding, finding alternative income.

Pete: Yeah, no, that's good. Let's say you have a buyer that maybe is curious about, you know, being a landlord. What advice would you give someone that's wanting to maybe explore that a little bit?

Faith: Um, I mean, I probably just share our experience. We're really strict with our tenants. Um, like there's a minimum credit score. Like it's like anything above 650, like we'll consider anything below. We don't, we don't do co-signers. Um, we did it once and we realized why we don't do co-signers, um, for that. Um, so we really have like a strict policy for us. We'll, we'll charge a little bit more for our rents than most people will just to kind of get in maybe a different demographic in. Um, and you know, I think overall it's not as scary as most people think. As long as you're, if you do the, you know, vetting, I mean, apartments.com is where we run everything through. Um, it's super, it vets your, um, tenants really, really well. Like I can see down to like court collections, traffic tickets. And yeah, so you, I actually know a lot about the client, probably sometimes more than they know about themselves, but it just really makes it a very unemotional, like, Hey, you either meet my standard or you don't, then I'm calling references and really vetting meeting them in person. Um, just to really make sure like, Hey, if I'm going to, you know, and, and the other thing is, um, we only sign one year leases. Um, we made them not a mistake, but we did one where it was two years. And we were like, Oh my gosh, two years. That's amazing. And then he was late on payments. He had a co-signer. And then I'm like, Oh my gosh, we're going to be like kind of stuck with this tenant. He was very respectful, always like try to communicate his issues, which was appreciative because we could be the other side. But I think it's just getting in there. So then you're, you know, you're not in contract stuck with them very long if you don't obviously like them. And then, um, just doing routine visits on the property, you know, making sure like you're keeping eyes on the property for it. So, and if you don't want to do any of that, then hire property management. But for us right now, we just don't have it quite under management. So no, no, we are the management.

Pete: It sounds like you, it sounds, it sounds like you guys really know how to vet that, that, that customer, which is, which can really help a buyer. If you're, if you are thinking about maybe getting into that and being a landlord, renting out the other bedroom, a garage or something, that's where you guys can really help.

Faith: Yeah.

Pete: Because you can really say, Hey, go to, um, apartments.com I think is what he said. And, and really vet out that, that tenant is super smart because I've been in that same situation with tenants and not fun to have, but also there's many, many, many rewards when you get a good one.

Faith: Yeah.

Pete: Consistent income, you know, every month. So yeah, for sure. That's super cool. Okay, cool. Uh, can you share a story of most memorable or interesting closing that you ever had when that stands out to you and that you will never forget?

Faith: Um, I mean, this is a little bit more humorous. It's, I mean, we have a lot of fun closings. Um, well to one, one most memorable is we actually were a part of somebody's proposal.

Pete: Oh, serious.

Faith: That was really, really cool. Uh, so the night before he texted Dylan was like, Hey, uh, I'm going to propose to Josie. And I was like, for reals, like where, how, like where's the ring? Like, do we need to do anything? And so I was like, okay, like I'm going to get a professional photographer, found a professional photographer. Like the next day, like last minute, I was like, how are we gonna pull this off? We'll just say this. She does like professional photos for closing. Anyway. He's like, I'm just going to hide the ring. But there was so little communication. I was like stressing, but trying to like keep my composure. Um, I was like, if you get to the house, like, are you going to tell me you want to be in the front?

Pete: Hold on. So, so is this a closing that like they're getting the keys?

Faith: Yes.

Pete: Like you're giving them the keys and she's going to propose.

Faith: Yes.

Pete: Yeah.

Faith: So we're passing out the keys. He's proposing. He basically said, I hit it in the lawn and I was like the front lawn, the back lawn, like where in the lawn, like I am freaking out. Cause my photographer has no, I saw, I got there like 20 minutes early. I'm scouring through the lawn. I cannot find a ring. Yeah. He went about in that morning to hide the ring somewhere. And he said, when we take photos, I'll get down on my knee and I'll pop the question where he had the ring, where he had the ring, but nobody knows where the ring is at. And so I literally like through, uh, him coming to the house. Hey, so excited y'all. Uh, this is a Cody. She's going to take some closing voters and she was like, that's great. Like had no idea. And I just looked at him. I was like, do you want to take it in the front or the back? Like, where do you want to do this? But he's like, let's do it in the front. I'm like, great. Like lead the way. Anyway, that was probably one of our most memorable closings was being a part of that. So they sold, they closed on their house. They were super excited. She got proposed to. And it was actually funny, the random, which I know her Cody bear. She, uh, did just the photos for them ended up becoming their wedding photographer. And like when they had a baby. So it was kind of cool.

Pete: I made some connections. So that's super awesome.

Faith: Yeah. So that was probably one of our most memorable, um, cool, cool closings to be a part of.

Pete: So, yeah, there's so many of those. I mean, I haven't had that kind of experience, but I do have stories of like families that stick out because it helps, we help a lot of families. And so like, it is kind of special to be in a, an environment or an industry or to be able to connect and have some of these different, I say that as realtors and probably lenders, we probably know more secrets than most people know.

Faith: Like when people are pregnant, you know, maybe unfortunately, if they're going to be, you know, be going through some life changes, we kind of are like the first to know because we're usually the poker or the chess piece that's like changing it for people. So yeah.

Pete: Yeah. Cool. Thank you for sharing that story. That's cool. Okay. Let's see. A couple more questions for you. Say an investor called you and wanted to look at some opportunities or find some great rentals or potential flips. Any good ones out there currently that you know of, um, uh, that you could share?

Faith: Um, I feel like by the time this comes out, they're going to be gone. So any good opportunity is usually like, I feel like gone. Um, and swooped up one that I was actually paying attention. It's very interesting if it's banked own, it seems very much more that it's owner first owner occupied first for the first 30 days. So like those are really compressing the investors.

Pete: Wait. So, so, uh, say that again.

Faith: So if it's like HUD or like a bank own, um, sometimes foreclosure, uh, sometimes the first, um, first 30 days goes to an owner occupied is on the market. Yep.

Pete: So basically an investor can't buy it.

Faith: Investor can't buy it to give like first, first rights to owner occupied. So I think that's kind of been a change for some, you know, and then, you know, obviously if the condition isn't in very good condition, then obviously an investor can, you know, swoop in and take, take over one that, um, closed, uh, gosh, it closed a while ago, but I'm always looking for ones that are in a good location cause you can never change the location. So there's one, it's going to be gone by this time. This thing comes out. No, it's on Harlan. And I think it was a great opportunity. Um, they have 10 offers on the table. So that's why I say, um, but it was listed for one 85 it's in Lake Reading. Easily. You could put, you know, um, you know, it needs work for sure. Um, but the comps in that area easily could resell lowest three 50 highest. If you did some really, really nice upgrades, maybe all the way up to like three 89. So for one 85 and if you did the work yourself and you did that, you know, it's a great area to invest in. Um, the one other one that I thought was a really great opportunity, it was a little bit risky for some. I've already closed again. Um, was, it was over off of Walden, the house, the front of the house was completely renovated and then there was a four plaque, uh, four plaques that were triplex either way. So triplex or the, yeah, that was behind, but it had a fire go through it years ago. So it was an abandoned, um, multifamily and through working with the city, they were basically like, we still want to create fair housing, you know? So we would be in favor of trying to push permits through to get this like, you know, finalized and like get back to a better state. Um, actually a realtor picked it up who is also selling the market. No, no, no, no. Um, I think, I can't remember who picked it up, but anyway, I was like, that's a great opportunity. If you're a contractor, who knows how to also take and manage that investment and whatnot. But other than that, it's like the flips that are on the property flips are risky right now. I feel like in the market, like you almost have to get it, like have you guys done a lot of flips? Uh, we did one, we did one flip. It was our very first flip and we way over put money into it that we kept it. Um, and we learned a lot from that.

Pete: Two flip, but then you end up thinking we were going to flip it.

Faith: And then we ended up keeping, which has actually been a really great opportunity for us to keep it. Cause that's now our second location of our in-law unit that we're almost finished building. Um, and then we flipped a house, uh, a couple of months ago and that was a little bit of a disaster. Um, we bought it super cheap, one of seven, like had tenants issues, uh, evicted the tenants out, uh, went through this whole process with the state of California, all that.

Pete: Wow. And it's for the tenants.

Faith: Oh yeah. It took us five months to get into like the house. Yeah. But we got the house for a really cheap deal. So it was like, which is your trade off, you know? So, uh, yeah, we were supposed to flip that much quicker, but unfortunately, um, our contractor passed away. Then it went to like subcontractors and then the budget got out of hand. So we learned also a lot from that, but we did sell and we, you know, made a profit off of it, but it wasn't, it was supposed to be definitely a higher different. Yeah. So I would say like, if the deal looks good, you always are usually going to spend more money on it. But, um, overall, you know, I think opportunities right now is just really your connection with other people off market or like what area are you trying to focus in? Can somebody call around and ask for off market opportunities? I mean, that's how we got all of our garden track properties. We never bought anything on market. No, just called around. So I was just really heavily focused in the garden track for a while and just called and called. Um, so I think opportunities usually first come off market and by the time it hits on the market, it's not, it's, it's an opportunity, but I don't, I wouldn't say it's a great opportunity.

Pete: So what I heard you say is that most really good opportunities that you've found come off market and by the time they hit the market, it's already been kind of, you're already bidding it up.

Faith: You have multiple eyes now on it. And now it's like if it's owner occupied and you're going to keep it for yourself, okay, this might be a great investment. But as an investor, does the numbers make sense after like repair value? Totally. So yeah, that makes sense.

Pete: Okay, cool. Um, this is my last question, but I think you touched on a little bit. If you were a first time buyer again, never purchased a home, uh, what would you, what would you tell yourself knowing what you know today?

Faith: Yeah, I think it's just a, you know, understanding like what your ultimate goal is in real estate. Like I said, some want to buy real estate just to live a comfortable life and they find different ways to invest and that's great. And so it's like, that's going to be your lane you choose if you're kind of like thinking this is going to be the start of owning many. Um, and you want to kind of not have to like put 20% down. That's how we got stuck is, uh, we bought new construction and we're still there. Um, but it's so nice and it's so comfortable. I'm like, why would I move? And so every investment property that we've bought after had to be 20% down. So it kind of just depleted our cash and then we never could really scale very quickly because we were always in essence like, you know, recouping that 20% and then restarting over again, recouping. So I tell people of like, if you can be unemotionally attached to your house and see it as an investment, your next financial strategy position to move forward, then it's not going to be, um, such an emotional, um, you know, purchase that in a year, two years when you decide to move and turn that into a rental, it's like, Oh, but this is so nice. Like, why would I move? You know? And then I think people just get a little bit of house stuck like I've been.

Pete: Oh, I see what you're saying. Yeah. So, so that's how I built my, my real estate homes that I currently have is buying and not necessarily being emotionally attached, but then, and I've sold some, uh, but, but, um, buying and then saving for the next down payment and then putting, you know, the minimum 5% down on the next, the next one.

Faith: So you're smart. I've been in my house for seven years. I mean, we have a ton of equity into it and sure. Our interest rate now is dirt cheap because we refinanced a couple of times. But because we got into new construction, the idea of moving in town or buying something that wasn't as pretty was like, yeah, which I am, uh, I am regretting selling my place next to yours. Yeah. It would go for so much now.

Pete: How much did you sell it? I sold it for six 15.

Faith: That's still pretty good.

Pete: Yeah.

Faith: I still think that's really good.

Pete: Okay.

Faith: Cause you were like what? 2000 square feet.

Pete: 2050. Yeah. Four bedroom, two baths.

Faith: Yeah.

Pete: Yeah. 2050 you probably would still be around there. I mean, the last one that sold up there was 2200 square feet for six 40.

Faith: Oh wow.

Pete: So, I mean, I think you, you know, you still did really well. You might've been able to capitalize a little bit more on the view, but I still think you did really well for it. I was stoked when you sold. I was not like, cause you were out of the neighborhood, but I was stoked for the comp, you know, but yeah, we've been watching, we bought ours for three Oh six and uh, dang, really? Three Oh six.

Pete: Yeah. We're the member. We're the first people in.

Faith: Yeah. I remember.

Pete: Yeah. And that's always, that's another house hack or something. One of your questions is like if you love new construction and clearly I'm not following my own advice, but if you love new construction, I always tell people be the first couple of people into new construction development, not the last house. Cause we bought ours for three Oh six. And now with all the recent sales, we could probably easily sell ours for like four 99, five 19.

Faith: Yeah.

Pete: And we haven't really done anything to it.

Faith: Yeah.

Pete: So you did put a hot tub in the back.

Faith: Thanks to Pete. And that was the second regret selling the hot tub. It wasn't a regret on our end. We're like, we'll buy. I think that was the fastest I buy.

Pete: Oh yeah. Yeah.

Faith: I think I texted you in like 20 seconds.

Pete: I got so many people and you were the first one. I was like, all right. And two, you were so close. It was like easy to move down there.

Faith: Yeah.

Pete: Cool. Well, thank you Faith very much. I really appreciate you showing up and, and doing this. Um, and got, I think we got a lot of really good content.

Faith: Yeah, for sure.

Pete: Appreciate it. Thank you.

Faith: Absolutely.