Water Claims Can Follow a Property Longer Than Sellers Expect

And now live from our Smokehouse studio, it's time for Real Estate Jerky. All your real estate questions answered by our provocatively lean expert hosts, Edward Ed Parco, MBA, veteran and president of Lending for Living. We'll give you something to chew on. Real Estate Jerky is on now. That's my California. Welcome to Real Estate Jerky where we always give you something to chew on. I'm your host, Ed Parco, MBA veteran and president of Lending for Living and Loan Squad. Our studio is located right here in Modesto with our producer, Mike Murray. I'm proud to bring you the latest updates and insights on the real estate market in our community. Thanks to our partnership, iHeartMedia and the station KFIV, you can tune in and never miss episodes by subscribing to our podcast.

Stay up to date by following us on social media. Joining me today is Mike Kelly, Re/Max Executive Realtor. You ready to get going, Mike? Absolutely I am. All right, first before we get into anything else, I just want to let you know we put together a Real Estate Jerky website um with all the videos we've done, all the radio shows, everything, you know, and the we now have a community corner on there that actually does all the local events in in your area. So if you're listening to us and you can hear us where you're at, you can just go to realestatejerky. com, click on the in the header, the community corner, and you can find out all the events that's going on. If you have an event and it's not in there, just send the information to info@realestatejerky.

com I'm sorry, radio@realestatejerky. com. Info was my other one. Info was my other one. I was helping the brave I was doing yesterday. Uh but we and then we just I I we needed to do it because we we're getting pushed to where people want to sponsor us and we had to show something that they have. So that's what we did. So go check it out, realestatejerky. com. Pretty pretty awesome. Let us know what you think. If there's anything you need to know, if there's a problem with it, reach out to Mike and then he'll tell me. Yep, yeah. We we want seven levels of communication Yes. because you get things done faster that way. That's right. That's what the government thinks, right? Is that what the government thinks?

Yeah. Yeah, so if you I don't know if we'll have it today, but if we do listen to it, it should be our our new opener. It's a little different than our normal opener, but it was time. And the best part of it is we own it. Yeah. We don't have to pay somebody else to record it and pay for the licensing of the music. We already did that. All right, now that I'm done with that, what do you got? What is going on? Do you want to start with your little national numbers? Sure, because I definitely don't want to talk about rates this week. No, no, no, no, no, no, no. Uh my my mom said if you got nothing positive to say, don't say anything at all. That's pretty negative. All right, so let's just go with inventory because that's up in national numbers.

We have inventory is up 16,325. Yeah, let me see if they're private. That's probably one of the biggest jumps in a week um in a long time. In a while, in a while. Yeah, so that's 890,303. If you look at NAR's number, National Association of Realtors, I'm sure it'll be 110 to 115,000, much different because they use all the stuff we did. That's just a single family one because that's from Altos. Yeah. Not Mintos, Altos. I need a mint. Yeah, so this week was really challenging because of everything that was said in the UN. The UN meeting? Yeah, yeah, yeah. That was and that just messed with the market. Actually, it's messed again as I tell everybody else, and it gets really cut up on our other show about oil.

Oil is the problem. It really really is. So you you know, the Feds can uh raise the overnight rate uh 25% or 0. 25 um and everybody's thinking, oh, interest long-term interest rates are going to go falling down. No, not necessarily. Oil kind of has a way of messing with that. Well, what all that's going to do is uh slow down people buying. Yep. But what they can the Fed can do and will help even though there's the oil problem, is if they buy more mortgage-backed securities, which then comes with its own issues down the road that they're buying so many mortgage-backed securities and things happen from it that really messes things up. So you just have to be there is no right answer except get out of the war.

Yep, that's the very right answer. And then buy today, not tomorrow. Refi later. Yeah, I mean when Trump told Iran he was what did he say he was going to do? He said he had two options. He's not sure what he was going to do, either diplomacy or just annihilate them. No, actually yeah, he said uh he threatened to annihilate Iran, which was viewed by the markets as an escalation and sent oil prices and yields higher. Later that day uh he met with Iran and they supposedly had a productive hour, three-hour. It was a three-hour tour. Yeah, they were on Gilligan's Island. And then the other guy, the Iran guy, came out the next day and said uh what did he say? Where did he go? He said something. I don't remember.

He's the is he the acting president or something like that for Iran that has no power whatsoever? Yeah, the one who came Yeah, so yeah, exactly. That's the guy. He sits on about we're not going to be pressured into there it is. Iran will never surrender. That's like their normal chant, isn't it? But we're open to diplomacy. I thought their normal chant was death to America. That's the second one. Oh, that's the RGC. Yeah. Okay. So the question really be, you know, again, it's going to all depend on what happens. And he keeps saying the primary is where they'll stop. I don't know. It sounds like a good thing. Well, you've been talking about that for a couple weeks, saying that you thought this would go through through the primaries and then maybe come to a decision of no more war.

Yeah, well, I say a lot of things. Yeah, no, no. Well, it's you know, it's following the main thought of the uh our community of USA. That's right. You're listening to Real Estate Jerky. I'm Ed Parco, MBA veteran and mortgage advisor, and alongside Re/Max Executive Realtor Mike Kelly, go check out our new website, realestatejerky. com. And if you because if you missed any of the shows, you can find them there. And any of our daily podcasts will be there also. You can even if you miss us so much, you can just find out everything about us. You can go back and listen to a show from 2018 if you want to. I don't know why. Yeah. You can't you Well, it'd be interesting to go back and listen and see what the heck you were talking about at that time.

I was not on the show at that time. No, you came four years ago in August August 6th. 6th of 2022. Yeah, according to the website. Yeah. Cuz I did do the history of the show also then. Yeah, it's pretty interesting. It's it's a very It's a well-built website. It's authority site. So I don't we don't build websites. We build authority sites. It's a different. A website is just something you throw together. This is something that shows who everything is and it's in perfect thing. Uh the one thing I use when I do anything like that because people will say, Ed Parco does those websites. I go, no, I do authority sites. It has to do with SB7 framework, which is story branding. If you don't understand what that is, go get the book and read it and then come back to me.

SB7 program. It has to do where you are the guide and your client is the hero, and it's all about guiding them. It's the same thing they do in movies that do real well. Top Gun, uh what's the other one? Uh Star Wars. Hey Luke. Yes, Yoda. Trying not to do I couldn't sound like him so good. Anyway, so that's we're just happy to have a place where you can go. And then especially the community corner. It's amazing. I didn't know how great it was going to be when they put it together. And now it has all the local events. And if you don't have your event on there, reach out to what did I say? radio@realestatejerky. com. There we go. All right, so what do you have? You got some numbers you want to get into?

Or is there any other No, I want you to talk about Exactly. Yeah. before we get into your numbers, why not put in a claim for water? And what's the yeah, the clue report? A water claim happens to be So stop back and explain the situation. Let's go back. Let's go back. Um have a seller um in the mountain communities of California and uh they had a massive water leak in their master bathroom and they put in a water claim or an insurance claim uh back in April of 21. Well, there's a clue report and I think you looked up what clue report stood for. It was comprehensive um Keep talking. I'm trying to remember. Anyway, yeah. Um anyway, it has to do with what's been claimed against the property for insurance.

Correct. Correct. And we everybody in the industry, the real estate industry, have been told by insurance agents that the clue report the report stands for five years. So your claim stands for five years. Well, we found out yesterday a few days ago So hold on. It's comprehensive loss underwriting exchange report. That's what it is. So it's a clue report. They got no clue. And what was funny is you said it stays on for five years and falls off. And according to this, it says it stays between five and seven years. The question is who's rolling the dice which year it comes off? Well, I talked to an insurance agent who had given us a quote on insurance on the property, which was, you know, we thought pretty high, 6,800 for the year.

And that's not a fair plan policy, people. That is that is just a regular homeowner's hazards insurance uh policy. Um and that's with a $5,000 deductible of 6,800 bucks a year. So back to the thing, if you have water damage, unless it is absolutely so major and there's no way you can fix it, don't make a claim. Just don't do it. It is a kiss of death. All right, so so what you're saying is get your real estate and mortgage questions answered by the experts at Real Estate Jerky. Contact us at radio@realestatejerky. com. Call me, Ed Parco, directly at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. We were in a conversation about uh you were talking about how there was an issue with somebody who has a property up in the foothills.

They have a clue report on it, which was a comprehensive loss underwriting exchange. And you were getting the whole thing about what that is, and I cut you off because we had to go to break. Yep, and it was fine to go to break because I got to have a break. Um so Your your actual wheels caught up. We property goes on the market. A few days later, we accept an offer that is workable. Um find out that the clue report comes back. Seller knew uh that it would that they had done a claim five years ago. Um we always were told by insurance agents that ever spoke at any of our marketing meetings about clue reports that the information only stays on for five years. Find out a few days ago that really it's between five and seven years.

And like you said, it depends on who's rolling the time dice. It's going to be seven years. You know it's just going to be seven years on something like that. Well, you know it's going to be seven years on water. Okay, fire, wind, theft, liability, not a big deal. Water and people don't understand because I've had many people go, I got a leak. I'm going to put a claim in for it. And I'm like, no. No, and that's what I've always told people. But when you prop when you list a piece of property that the claim was done five years ago, you're thinking, oh, I've always been told five years is fine, so we're going to be good. We still have to disclose it, which they did. Um but it is very expensive.

It's like the kiss of death. And here's the here's one of the biggest problems. It's all the tertiary things that can happen due to that water. And one of the big ones starts with the letter M and ends with the letter G. Uh mold. Oh, I'm sorry. Uh mold is like is like the biggest thing since sliced bread when it comes to health issues, you know. Well, not only that, you don't know if it's there and if it dried right and what was done. Yeah, unless you tear the walls apart and do it in a uh what we called a uh damage-oriented inspection. And you don't want that. So even though even though And I understand if you get flooded and you have other you don't have a choice. You Well, you yeah. You but if it's something small, just take care of it yourself.

Yeah. Now, way back in the day I'm not trying to say hide it. I'm just saying there's no reason to put it on that. You can still disclose we had this issue, but it won't mess up the insurance. Right, you need to disclose that you had that issue. It's like a home down in the La Loma area that wound up with 9 ft of water inside of it during the flood in the 90s. You know what it's like? It's like getting pulled over or by a cop and he gave you a ticket for speeding and that's on your thing and now your insurance goes up or he just gave you a warning and you took care of it yourself and didn't do it again. Right. Right, right, right, right, right. Not exactly, but yeah. It's similar. It's similar.

Insurance the the risk of damage is what will keep fees up high. Right, cuz there's cuz the insurance company is now taking that over. Right. You can you'll put a claim into the new insurance company, not the seller's insurance company. Exactly. Yeah. So the new insurance is like, hey, there's a potential we're going to take a loss. You're going to pay us for that risk. And as a seller, your initial your initial thought is I'm I'm being wronged for something that I did fix a long time ago. Um but the the liability is still there. Yeah, it's a that's a issue with everything. It's the same issue with I had a client call me wanting to do a refinance past client. I'm like, great, I've got all the information, run her credit.

She forgot to tell me she's got she's 90 days behind on her mortgage. Oh. Sorry, you can't do a refinance these days. This is not 2005 where you can have a 475 FICO score and we be able to do a loan for you. It's not that way. Private money maybe, but that's not on a primary residence. You can do private money on a primary residence. We always thought you couldn't. It's just so tedious to make sure you cross the t's and dot the i's. It's not worth the headache. It's like we when it used to do a cash out refinance in Texas, it you can't. You mess with you do. Well, we used to so I we used to do refinances in Texas and a lot of people would never do a regular refinance in Texas because it there was a old law and so what we did is we shorted every loan by $5 and we covered that $5 so that we never went over and paid two months on the principle and then there was a whole issue.

So that's you can figure a way around things, but things like this don't do it if you you can get around it. Don't do it. Yeah. And then, you know, the other things is if you have a water claim you made the water claim and then you get some little small thing happen don't make another claim. Well, don't make a water claim to begin with. Yeah. I I I know it's easier said than done. Just understand if you do that that will be on your thing for in the Clue report for five to seven years. Five to seven years. I just plan on seven years. It's going to be seven years. And that's maintained by LexisNexis. Did you know that? I did not. And that's why do they rhyme? Cuz there was Lexis and then the other guy has a Nexus and then they came together and now they're LexisNexis.

Interesting. Yeah. So It's not like Lululemon. The best stretchy pants ever. Um So California even Ventura. You just don't make the claim. And I understand if you have something catastrophic you have to make the claim cuz there's no way you can repair it on your own. Well, the difference if you had a fire on a Clue report guess what? There's no mold. It's not going to catch back on fire. It's not going, you know, but you do have damage. Did you remove all the damage wood or did you leave the No, they said that wood's fine. It just got black marks on it. You know what I mean? Cuz have you ever been into a I saw some house where their garage burned and then they redid it and you can see those I'm like, why didn't they just replace those?

It's just Well, because it was it was still load bearing. We talked about this earlier in the week. It's like I knew a guy who bought a Ferrari. I mean, it was just paid cash for it. Came home that night, wrecked it. Well, that was stupid. Why did he do that? Well, that's cuz he's an idiot and he was flying it with his brother trying to, you know, show off and and you know, he hit the the curb thing and broke the wheels off everything. There was like $70,000 worth of damage. Well, they take that back to Ferrari and take every bolt out of it and everything out of it and redo everything. It's still a wrecked Ferrari. Yeah, still a salvage title. Even though they actually they sold it like it was a regular vehicle.

You know what I mean? Yeah, back in the day. Not like a cuz it was a I guess it would be almost like a remanufactured, right? Cuz they redid everything. A salvage title would be somebody who didn't send it back to the manufacturer. True. Right. Yeah. And the frame was still bent and the front was to the left of the back. You know what it is? It's you're listening to Real Estate Jerky. I'm Ed Parco, NBA veteran and mortgage advisor and lending for a living alongside Remax Executive Realtor Mike Kelly. All right, Mike, why don't you do the numbers now? Now, in the state of California, uh uh Redfin who only looks at single family homes says we have around $107,000 $107,000 residential properties are currently listed in the state of California, which is down about 3.

5% year over year. So what does that mean? No bubble. Uh nothing's going to burst. realtor. com Well, they're saying with these rates going up, it's going to cause some problems. We'll get into that a little bit later. You might lose a little bit of equity. You're going to see some reductions. In fact, we'll probably talk about reductions in a little bit. Um realtor. com we're tracking about 156,300 listings and it seems to be that's been holding steady for the last month, I want to say. We've been 156, 157. Um you know, so not a lot of properties. There's still some demand. The demand isn't high as it was um in the beginning of the year, uh especially March, February and March. Wow, that was two really nice months in the Central Valley.

Um Those are the best months. Those are the best. There was no other months better than those. Uh and in in in our little county of Stanislaus, we've got 868 active properties on the market. Those are all price ranges and those include condominiums and town homes and single family homes. Uh currently for the month, we have 370 pending sales. So that looks like let's do that math. That's 1,238 homes. You need a calculator? No, I was able to do that in my head. And then uh we've closed 182 through since the beginning of September, September 1st to today um which is not like February or March. Those were the best months, the very best months. I thought was the February No, it was March and April.

Was it March and April? I thought it was February and March. Maybe there was Yeah, that's why it was so great. Nice try, but no. Go back to your numbers. You'll see. I don't want to. I'm a numbers guy. You are a numbers guy. Anyway, uh yeah, so I don't want to get into the mortgage backs. So the NBA has put out their information for last week and they were saying how uh refinances are 39% of the market out there, but um they're almost like 62% uh less than last year at this time. 62% less. Less. Yeah, year over year. Okay. Yeah. So I mean, that's that's a horrible number. When you did the national numbers, did you talk about um the percentage the percentage of reductions? No. Okay. Did you want me to?

Yeah, because I want to tell you what's going on in the state of California. You know, you're just so demanding. I am sometimes only, you know, every 14 months. Every Why is it only every 14 months? I could see the only number I can come up with. All right, so inventory I didn't talk about median list price either. It was $439,900, which is up 900 this week. Yeah. Days on the market was 70 days on the market and price cuts is 42. 07. So they got rid of the I guess it was 42. 09 last week cuz it's down . 02. It's down . 2. Wow. Yeah, which just means that, you know, so that just means 42 people out of 100 will reduce their property. I think it's going to be worse this week. I mean, next week will be worse because of the fact of what's going on.

Yeah. The annihilation in or the diplomacy. It's No, it's just because as rates get above seven and keep trickling out cuz we're now there easily. Yeah. That payment keeps going up and that's expensive payment. I have a client who's in contract right now with a VA and she even got their house reduced uh $12,000 and then she comes to me and she starts talking about, hey, I'm thinking about buying land. Well, VA doesn't do land loans. Well, they can do a construction loan. I go, yeah, but it's like, you know, $400 a square foot now to build. But I can do a loan, right? Yes, you can. But the house you're getting right now, you're putting no money down, no closing costs. You got a great rate because I locked you way before these rates got worse and you just got it reduced like $12,000 and um I went through the note.

She goes, oh no, I was thinking about buying another one. Okay, fine. Then find that person who wants to sell that piece of land and then work out a deal. Yeah, put 20% They're going to want 20% down and have them carry. Well, the piece of property she really wanted uh we'll talk about when we come back. Oh, you cut yourself off. That's so cool. This is Real Estate Jerky on Power Talk 1360 KFBK and I'm Mike Kelly, a Remax Executive Realtor here in the Central Valley right alongside Ed Parco. You know, he's an NBA, a veteran, a mortgage expert and president of Lending for a Living. And we were just discussing uh the options on a VA land purchase. All right. Well, I was talking about what my client called me about and they wanted to I thought maybe they wanted to cancel the property and which they're right.

They can do whatever they want, but it's such a great deal. Um I think they're only paying $189,000 for a property. Where? Manufactured on acreage sitting on a permanent foundation. Yeah, it's been there. Um needs a little bit of work, but she's like, it'll be new. So she's like, but I want to buy a piece of land and I want to buy, you know, like a manufactured home or whatever. I'm like, yeah. How much land does she want? I don't know. What the problem is she found a property that she knows the person. It's $35,000. It used to have a manufactured home on there. It burnt down and she's like, so is there EPA, you know, I go, I don't know. Why don't you talk to the people in LA and see how easy it is to build on a property now when something's burnt down on it.

It's not. So do you need to go research all that and be careful because there might be a reason it's only 35,000 for three acres or whatever it was. Did it burn down because of a forest fire or did it burn down because I have no idea. I just burned down and so it's got septic and well and all that stuff, which is a great thing and cuz it's really nice to find a piece of property that has a mobile home on it that's not on a permanent foundation and then you can buy just buy it and then replace it with another one. Everything's there already. That's the best way to do it. All those things are there. And sell the mobile home for like 1,200 bucks. You can't do anything. Just move it to the side. Okay, be your ADU.

Well, the other thing is how old is it? If it's 78 or older? 79. Oh, is it 79? Yeah. If it's No, it's June of '76. You're all throwing me off. So if it's think about it cuz if it's not on a permanent foundation and as long as the thing has not been moved, you can always put it on a permanent foundation and then now it's real property and now it's worth more because it is on a permanent foundation. And those are anywhere from $5 to $20,000 depending on what that thing is. Meaning who's doing the foundation, how big the thing is. But it's something you can always add to later. Right. Well, you know, I got a shovel and a concrete mixer. Could I just do it myself? Yes, you can. Um you know, when you were talking about national our median national Well, I cut you off when I got into this whole thing about Yeah, that that I didn't I didn't mention the statewide for California.

We're looking at a median price right now approximately late $901,420 as of August of 2026. I know we're in the near the end of September, but that's still a lot of money for a piece of property. And and uh California even though we got all kinds of billionaires leaving, property prices are still up there. They're not Well, they're not dropping anytime soon, but eventually the question will be if people can afford what will happen. They'll just sell their shares of Nvidia and SpaceX. Right. Move to Arizona. No, they'll just buy with that and stay here. What are you talking about? They're not moving. They can afford it. They can afford to be paying taxes that are stupid taxes. Yeah, but also during all this crazy stuff going on with the war, our median days on the market in California are only 27.

You were saying it was 70 for the nation and we only have Really? We're only We're only what? 27. Yeah, we went down one day from last week. It was 28. Really? I thought it was I thought Oh, that's Stanislaus Oh, it's Stanislaus County was 50% reduction. 50 50% reductions and we're looking at about 40 days average on the market um for Stanislaus County. 41. 2% of all listings in California are being reduced. Those are listings that are um offered through a multiple listings So, and in a nation you said was 47 point two? Something like that. Yeah, something like that. Anyway, that brings you to date with the state and the county. How exciting is it? Yeah, I was looking at it because we have numbers on our real estate jerky websites, Stanislaus County numbers.

Yeah. And but they're they're only monthly, they're not weekly. I have it set up if you want to go in there and adjust it daily, you could. Oh, cool. You could. I could. For the people. Cuz I got access. Otherwise, it's just going to show you uh the what an average for the month. Yeah. Which is okay because you don't have to know constantly every second and whatever the things are. Well, it doesn't mean anything. Well, it doesn't for whom? Most people looking to buy a house, what they want to know is is there a home in the location they want to be and can they afford it? And is the school system good? Exactly. Unless they don't got the kids. And they're and they're not going to get the kids. But it always, you know, you got to look at those schools the school district the schools this leads into because that affects your resale.

You got to buy think about things that affect your resale. That is correct. You always have to and that's like when you do any remodel, any painting, anything, well, some yeah, does will somebody else like it or will they go, okay, that that Bronco stuff in the pool's got to go. Well, it can't. You got to redo the whole pool. I know I'm picking on Raiders. My neighbor at my last place had a Raider thing in the pool. You really should contact your realtor. And it's like you know that you'd have to sell that to another Raider fan. You're listening to Real Estate Jerky. I'm Ed Parco, NBA veteran and mortgage expert at Lending for Living, alongside REMAX executive realtor Mike Kelly. Well, with it and is with as many crazy uh Raider fans we have in the Central Valley, that could be a selling point.

Yeah, well, it could be, but I'm just saying that when you do something so specific for one group of people, that's different. I mean, there are places that they put a kitchen, they have a kitchen in the garage, which is for some people is good. Some other people is like, no, I don't want my extra kitchen in the garage. Yeah. In the garage. I want it out the back. I want a big barbecue and all this other stuff. People see my area, they're like, wow. Yeah. Yeah. Well, it's like oak cabinets in the in the '80s with the tile countertops, the luxurious tile countertops. Well, the best part is when it's salmon color. I like the salmon color. Yeah, throughout in the kitchen. Then we have a we have someone that's like, they're talking about my kitchen.

Yeah. Well, we have more than one someone probably right now. We just had to have somebody Marge, I guess it's time to paint. You know, uh so when we were putting our pool in, we had slated for new windows, Marge was doing her bathroom, and then we had to cut the doors out because we had that huge increase because they found our sewer line was in the middle of the pool. Yeah. And then we had to redo all that stuff, which was good to redo the sewer pipe because it was time, and then all the water pipes because they, you know, you get galvanized and after time they just get bad. So now we have great um water pressure. Oh, that's right. Yeah. Right. So what I was getting at it was what's it getting at?

You're getting at um Marge Oh, oh, doors. So now we had to go we had to cut the doors out. So now we're actually hired a company and they came out and measured for everything to replace all the doors. the bathroom finally. The back doors, the French doors. The French doors, yeah. Yeah. Garage door, interior door. I just, you know, as you do things, one thing leads to another. The door doors. Yeah. I think that was a song by Inxs. No. No? Not one thing leads to another. Was it The Fix? It was The Fix. Okay, one thing leads to another. Yeah. Yeah, all right. Well, you should not be singing that. I'm not trying to sink. I was just trying to Yeah. Um yeah, remodels. I always refuse to finish the remodel.

There might be a piece of trim in the living room and there might be one casing that needs to be painted, but I'm not going to finish it because as soon as I do, my wife will say, we're selling. Oh, is that why you don't finish? Yeah. Or they'll say she's saying, I'm moving to Colorado. I said, goodbye. I'll stay here, make this payment, you stay in Colorado and make that payment. And I understand, you know, grandma and the grandkids just keep getting older and older and Eventually they'll be gone. Yeah, you don't want to miss out on those years. Right, but Oh, that's why we just go there is Right, I was like, the problem is just like your children, that's why back in the day people bought smaller houses, lived in it for forever and had the kids grow in.

Well, we have four kids, we only have two bedrooms. Well, the four of them will be in there until one will leave eventually. forever Yeah, they do fly the nest. And then you have a huge house, you got to then downsize, which then it makes no sense to downsize. So you close off half the house that you don't need, and what do you do? Well, we talked about an article a couple weeks ago where um there's a big movement of children coming back to to roost in the family home because the family home is big enough for them to fit in the family home. Well, that's why they made all those McMansions back in the day to have three families living there. Yeah. All those big McMansions. 5 ft apart. Wait, I think 10.

I think 10 ft apart. All right. Yeah, and so we got, you know, it's just over time things are going to be there. All right, so uh I had this little uh thing where last week I talked about a couple weird stories. Okay. And this Zillow Gone Wild roundup, a 27 room house, nine bedrooms, a speakeasy, a great hall, a tavern, secret passageways, a cook stove, two protective natural strings springs. Let's see if I can get my mouth to work. English gardens and fittings pulled out of a ward off Astoria Hotel. It's on 9. 25 acres asking 989,000. Wow. You wanted to get it? 985 That's it? Yeah, but that's not here. It's not local. It's in the uh the country of New York? Yeah, I don't have uh it didn't put the state to put in here for me.

Oh, okay. Yeah, sorry. So that is very inexpensive. So just figure you got to live there. Well, the problem is a one-of-a-kind house is very the reason I brought it up is it's really hard to appraise that house because there aren't any other houses like it. Yeah, you can't say, well, this one down the street sold for this. Right, because it's so much easier when it is a um when you a track home because you have other track homes to do it. So unique properties are very hard to sell and very hard to get rid of. Sometimes you don't want to get rid of them because you can't. Real Estate Jerky on PowerTalk 1360 KFYV is always bringing you the latest information in the real estate industry. And if you have any questions or comments about our discussion today, feel free to email us at radio@realestatejerky.

com. And uh before we I don't know if I said this once or twice today, uh real estate jerky. com go check out. It has all of our past shows, all of our current stuff, and a bunch of stuff about us and the history of the show. And the best part of it, which we'll talk about here and usually in the fourth segments, which will be the community corner, I'm going to leave that to Mike to talk about uh as we get closer to the end of it. Okay. All right. So one of the articles that we we get unless there's a producer sends us thousands of articles and we have to go through and and narrow it down to five. I just don't know why he doesn't narrow it down. Thousands and thousands. And one of them was um and I also listened to a podcast uh this week about this and it was about uh the guy on the podcast was saying that buying is the best thing to do and the guy who was the host of it is saying, no, I think renting is the best way.

And they had the little article. So Marco Watch took on a question of 20 or 30 somethings are asking. The overall was buy a house, build wealth, and but with prices and rates where they are, many younger people are run rerunning that math. And I can understand that, but as I always say, real estate is a long-term investment when you own it. It's not a short-term investment. The difference is when you so what a lot of people say, well, put your money in the market and because you're going to have a a 10% return. Yes, but the difference between the market and we can get more in this thing in a second, the market and a house is if I buy $10,000 worth of stock, I got to put $10,000 down. Right. If I buy a $500,000 home and if I'm a vet, I put nothing down.

If I'm anybody else, I can put 3 to 3 and 1/2% down. And my say my house appreciates $100,000 over 10 years. Well, guess what? I only put in uh let's say 3% on 500, that's $15,000, but I gained $100,000. That's the difference. You're using leverage to make more money. Yeah. You can't live in a stock. Right, you can't live in a house. You can't live in a stock and stocks go up and down just like everything else. But here it's but the problem is the short-term. If you only look short-term, you are correct. Yeah. It's the long-term because it over time you eventually your mortgage payment is cheaper than rent. I always think it's interesting that just about every writer of an article like this always leaves out the gained depreciation of the property.

Almost always leaves it out. Doesn't think about it. But the question is the person who's writing this, do they own a home? They probably don't. Yes. And I get it because I didn't buy my first home till I was 31. Oh, you're a late bloomer. I'm not a bloomer. I said bloomer. Gen Z. Yeah, anyway, so it wasn't that. It's just I lived in San Diego. Yeah, expense. And not only that, I mean, I by the time I I mean, I got out of the service at 23, I there's no way I could afford because I the income I was not making enough. It wasn't until I got more that I bought my first house. I rented up into that point. So when people are like, well, you know, I'm in my 20s and 30s and I can't buy. Well, you know what?

Most people didn't buy until their 30s because they had to save the money for the down payment, which you don't really have to do today. It's different for veterans. But the big thing for me, if you look at this rule, renting buys flexibility and keeps cash free. So if you know you're going to move in 2 years somewhere else, if you know that, hey, the way I'm doing my I'm a a Vibe coder and I can live anywhere in the world, I'm going to live in wherever. Well, then don't buy if you're not going to stay in the community. Don't do that's the only thing. And one of the things they brought up in that show I was listening to, they were saying how, well, how how long will it take you to sell your house?

On average, it's 70 days, we'll say right now, right? Say 90 days. Yeah. National average. How long will it take you to break your lease? Depends on your lease or what will it cost to break your break your lease because And can you? Yeah, sometimes you can break a lease by paying the full lease. You know, you're leasing for a year, you've been in there 3 months. Well, you you got uh 9 months worth of uh lease to pay. Yeah. Yeah, you can just Payments, yeah. And I don't know the whole rule of that if there's new rules, but that's how what I saw. Renting is so renting is like a gym membership. Owning is buying the gym membership is cheaper this month. The gym owner is the one who gets the building in 30 years.

That's the difference. Yeah, that's very very true. I like that analogy. That's pretty cool. Renting isn't throwing your money away and buying isn't a guarantee. The question is how long you stay like I said and what you do with the difference. And so you got to run the numbers, not the internet information. Stop listening to those people out there. Yeah. Yeah, don't listen to who's the the guy that always talks about um investments over real estate? I don't know. You're listening to Real Estate Jerky. I'm Ed Parco, NBA veteran and mortgage advisor of Loan Squad, alongside REMAX executive realtor Mike Kelly. If you have questions or comments for us, feel free to reach out by emailing us at radio@realestatejerky.

com or go to our website realestatejerky. com and fill out a contact form or whatever you want or you know what? If you're we have a calendar of who we're looking for. It's on there. If you're one of those people, please apply to be on the show. You can do that on the actual website. Community corner. What's the realestatejerky. com. So this this Saturday So what So uh so you're talking about the the community corner now is what you're bringing up that we have on our website? Yeah, on our website at realestatejerky. com. And what is it? It is a calendar of events for four counties. Um right now there's some stuff going on in the Modesto area uh that looks pretty interesting. Uh not only do we have We Own the Laughs at uh the State Theater uh this evening um with uh featuring Aida Rodriguez.

So it shows all the local events. Yes. And if your event's not on there, please reach out to us and we'll make sure it gets on there. But anyway, go ahead. Yeah. Please. radio@realestatejerky. com Um there's also a backyard benefit at uh 1525 Marsha Avenue and I've known this guy Dave Dow, uh pianist um for years and years and years, great guy. Um Red Dave Dow and the Red Tie Art. Uh that is his band and it looks like they're going to be headlining that concert. Is that who's that the thing? At the backyard barbecue? At the back at the backyard benefit concert. I don't know if they're barbecuing. It says a barbecue. You know it does where I see benefit concert. Oh is that what it says? Anyway and then you've got the Modesto history of low riding in the 26 holiday.

It's a free community event uh downtown on J Street between 10:00 a. m. and 4:00 p. m. So that's pretty interesting. All sorts of stuff going on. All right so there's a lot of stuff going on. So yeah so go check out realestatejerky. com go to and click on the community corner in the navigation and you're going to see the stuff change there throughout the day if it changes or I guess add to it. Absolutely. Yep. You can search you can search by county. Yeah I want to own the lass and we own the lass Modesto featuring Alden Aida Rodriguez huh? You talked about that already. Aida. Right. Sorry. She owns them. Does she own them? Well I whoever she is. Did you talk about the edible how that was earlier this week?

That was Thursday yeah. Yeah Thursday night edible extravaganza but guess how many years it's been going? Uh 40 years. 40 exactly because you just read it. 40 40 years. You know and but and I I don't know if they have bunco every bunco every Friday night but they have bunco at the Eagles Club. I mean what's an Eagles Club? At the Eagles Club yeah. Uh probably has to do with Boy Scouts I think. Uh that or Falcons. Well and you know Silent Sky the Prospect Theater Project um always puts on some pretty interesting local um uh theater. And so you got Silent Sky that was running uh 25th and 26th so you could see it tonight. Uh you'd have to go to their website to be able to purchase tickets but it's also running October 2nd, 3rd, 4th, 9th, 10th and 11th.

And if you can't find it just go to our website because you can click on the the organizer for price and it takes you to another page and then you can go right to their website. There you go. Yeah. And then also you can look at what read listen to some of our old shows. Yeah but this is this is See how bad Ed was in in 2018. And how he hasn't improved at all. Now you're doing really good. You're That's right. Except for speaking. You're pronouncing most of those words correctly all the time. Uh this website it's worth a few minutes to go to and check it out and it'll take you more than a few minutes. You can do deep dives on all kinds of stuff. A lot of helpful I think you were surprised how how nice it was.

It's very professional good looking and does it it gives you more than something to chew on. You can read some things too. Yeah correct. And that's a wrap for today. We really appreciate you. We appreciate you Mike for being here. If you have any questions or comments you can find you can go to our website or hit us on social media or shoot us an email at radio@realestatejerky. com. Give me a call Ed Barco at 209-404-1915. Reach out to Mike Kelly at 209-968-5633. If you miss any of the shows don't worry you can find them at our website at realestatejerky. com. We're proud to live in this country. You can still build personal wealth through home ownership. Join us on Real Estate Jerky. We always give you something to chew on every Saturday at noon, Sundays at 3:00 p.

m. and then also Wednesdays now at 7:00 p. m. Thanks for being on the show Mike. Thanks for having me Ed. My pleasure. We'll talk to you next week. Bye. Cuz we got small towns and farmland. Folks who still make a living with their hands. Where I come from a man is still a man. That's my California.