Welcome to the July episode of Learn with a Lender with Joel Schaub of Guaranteed Rate!



In this episode Joel discusses the rates going up and the importance of informing the buyers. Joel emphasizes the importance of agents checking their client's profiles and making sure they're qualified to buy property. Joel also talks about how agents should always inform their clients about the rates since it may affect their loans. Last, Joel talks about how new agents should always have information on their clients and a strategy for them.



If you’d prefer to watch this interview, click here to view on YouTube!



Joel can be reached at [email protected] and 773.654.2049.



This episode is brought to you by Real Geeks.











Transcript



D.J. Paris 0:00Today you're going to learn what top 1% realtors are telling their clients about rates in inventory. Stay tuned. This episode of Keeping it real is brought to you by real geeks. How many homes are you going to sell this year? Do you have the right tools? Is your website turning soft leads and interested buyers? Are you spending money on leads that aren't converting? Well real geeks is your solution. Find out why agents across the country choose real geeks as their technology partner. Real geeks was created by an agent for agents. They pride themselves on delivering a sales and marketing solution so that you can easily generate more business. There agent websites are fast and built for lead conversion with a smooth search experience for your visitors. Real geeks also includes an easy to use agent CRM. So once a lead signs up on your website, you can track their interest and have great follow up conversations. Real geeks is loaded with a ton of marketing tools to nurture your leads and increase brand awareness visit real geeks.com forward slash keeping it real pod and find out why Realtors come to real geeks to generate more business again, visit real geeks.com forward slash keeping it real pod. And now on to our show.



Welcome to a another episode of Keeping it real the largest podcast made by real estate agents and for real estate agents. My name is DJ Parris, I'm your guide and host through the show. And today, once again, is our monthly series called Learn with a lender with Joel shop from guaranteed rate. Now, Joel is vice president of lending at guaranteed rate. And he's been doing loans at a high level since 2003. It's his 20th year, actually 21st year. And he got to that level because of what he does specifically for agents, which is that he gives back part of his commission to the buyer on every transaction. And last year alone, Joel gave back over $300,000 in closing costs to buyers who worked with him. And that puts Joe's volume in the top 1/10 of 1% of all lenders nationwide. In fact, there's 400,000 loan officers in the country. And Joel is currently ranked number 137 out of 400,000, which is amazing. Last year, he did a tremendous number of transactions, his highest amount ever, actually. But this year, he's already closed 157 transactions purchase transactions for just shy of $71 million. And if you're looking for a loan officer, we cannot more highly recommend Joel he's the very best we've ever worked with and he can be reached. So I want everyone if you're interested in reaching out to Joel, you should be because he's fantastic. It you can reach him a couple different ways you can email him. So [email protected] [email protected] Simple enough, or send him a message on his cell, which is 773-654-2049. And we're also going to talk about if you're not currently receiving his weekly newsletter, which is fantastic because it gives agents really digestible talking points so that they can understand what's going on in the world of lending with respect to rates, and maybe what the Fed is thinking and how the how the loan companies are reacting to that. And it gives you ammo so that you can talk more intelligently to your clients. And so definitely shoot Joel an email [email protected] asked to be put on his mailing list. And you'll get those talking points every single week. Joel, welcome. Oh, I'm sorry. One more? No, that's it. Okay. Joel, welcome to the show. Sorry, I



Joel Schaub 3:45Am I no fanfare, but it's just good to be back. And every single time I come on, it's one of the best days of the month because we actually get to chat. We get to go through things that will help agents grow their business, and I'm just definitely happy to be here.



D.J. Paris 4:01I'm happy you're here too. And I it's funny because Joel Of course, and his business is not immune to what's going on in the market. We know it's a challenging time for real estate with respect to low inventory higher rates than then we all would prefer. So it's tricky. We know it's a tricky year. But I loved I asked Joel just before on before he came on. I was like how's your business? Because everybody I run into whether they're a realtor, a loan officer and I almost everybody is like, Oh, it's a tough year. And Joe's like, you know, I know it's a tough year but we're actually doing really well. So I'm excited to talk with you because I want to hear about some of the things you're seeing that's working out there right now. Any edge that you can help give to an agent when they're working. You know on the buy side or sell side possibly I'm sure you see opportunities both but let's I guess maybe we should just first let's let's just get the rate question out of the way we know rates have crept a little bit up closer now to 7%. We know they were down a little bit last year. Last time we talked to in the mid 60s. So they've crept up a bit. How you know, what, what are your thoughts on rates and what realtor should be thinking about?



Joel Schaub 5:10What's funny DJ rate should have slowed buyers down, right if a payment on a mortgage on a 6.75% rate versus a 2.75% rate, but we're just not seeing that we're just still seeing buyers out there that are so strong. So in demand for properties, they're just not finding properties. And that's kind of comes back to the supply and demand issue. Right now, we're having buyers still if it's a hot property, coming in at full asking price and losing right or going above asking price, and lose. And I see this happening for the rest of the year until next year. We're just not getting enough inventory to make it either a buyer or a seller's market.



D.J. Paris 5:58Yeah, it's sort of that in between. And I wanted to read you something I found from Redfin. And no, you know what, I don't have it in front of me. But Redfin did some sort of study. And I don't know how accurate it is, I'm just assuming it's accurate, where they said that they believe that once the rates get into the high fives, like I think, I can't remember the exact specific number. But it was, it was, it was around five and a three quarter percent, right around there somewhere. And they said, as soon as that happens, and eventually we hope, of course, all of us hope it does, you were gonna see this mass influx, like that's the that's the buying temperature that people really want it to get to before buyers flood the market, which of course, if that happens, we have a whole nother set of problems, because then we have all these buyers flooding the market. So I think there's a huge opportunity right now, and it's a little bit of an uncomfortable, maybe opportunity. But I think the smart, the really, really savvy realtors are going to be talking to their clients about, hey, we know that rates are maybe a little higher than you would like. But here's what happens when they go down. And here's what happens couple of years ago, when they were at historic lows. Remember how hard it was to even buy a property then and we may see a you know, a duplication of that if rates even go down into the high fives. So I'm just curious sort of what your thoughts are, you know, we know the whole date, the rate marry the home, which I think is about as brilliant of a saying as exists because it is absolutely a smart play. But what are you seeing out there? What are you recommending to agents, buyer's agents



Joel Schaub 7:31are hear this all the time. And I want to make sure that we go through a concept where a buyer says, Well, I don't want to buy it DJ, I want to wait until rates come down, right. And then just reminding the buyer that what happened when rates went down before now you have instead of three or four offers on every property you might have 10 offers on every property. So if you are able to make the payments on the mortgage, it's still a good time to buy a piece of real estate. Now, if you can't afford it, it doesn't matter what the rate is, if you can't afford the payment we shouldn't be buying. So we want to make sure that we walk through the client's profile and understand where they're comfortable. Make sure that if they can afford rates that are in the sixes, when rates come down, they'll have already owned the property, they'll be able to refinance the debt even lower, and then just work with most banks that will allow you to refinance with no fees. Because that's usually the next hurdle that people say is Well, of course I want to buy. But down the line, I don't want to be charged 1000s and 1000s of dollars to refinance. And there's plenty of companies not just mind that if you're getting a mortgage, they will have no cost refinance rates down the line, we just don't know when rates are going to drop DJ. And the feds are talking right now, as we're getting ready to tape this, that by the time this airs, we'll have another 25 basis point increase to the Fed rates. And we may still have one more to go. Looking ahead to 2024. There's already calls for the first quarter of Fed cuts. So looking at March or April into next year is when we believe the feds will be cutting rates.



D.J. Paris 9:09I think if I were if I were practicing agent based on what you just said,

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