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Saving with Steve, 25/05/2021

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Saving with Steve
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Guests, Brad Galbrath, Polina Ryshakow and Shane Steel

Saving with Steve with Steve Sexton

Guests, Brad Galbrath, Polina Ryshakow and Shane Steel

Saving with Steve

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The Save With Steve Show, hosted by Steve Sexton will help you with ins and outs of money. We talk about financial issues that that could be costing you thousands of dollars and keeping you up at night.

We talk about “money”… tax reduction, saving more, how to spending less and get more, 401k’s, risk management, retirement, and everything under the sun that relates to you having a healthier happier relationship with money.

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Weekly Show
BBS Station 1
Tuesday
Starts
6:00 pm CT
Ends
6:55 pm CT
Show Transcript (automatic text 90% accurate)

everyone has their own unique views and needs when it comes to financial success if you'd like to leave your financial woes behind and live a life of Financial Freedom you've come to the right place welcome to the saving with Steve show hosted by Steve Sexton the show will help you with the ins-and-outs of money we talked about financial issues that could be costing you a thousands of dollars and keeping you up at night we talked about money tax reduction saving more spending less 401K risk management retirement and everything under the sun that relates to you having a healthier happy relationship with money now here is your host of saving with Steve Steve Sexton hello welcome to the saving with Steve show where we talked about the ins-and-outs of money pretty much everything under the sun that relates you having a healthier happier relationship with money my name is Steve sex and I want to thank you for doing this day more importantly I want to thank you to all our listeners for sharing this with your friends or family or Associates we're just hit the
500000 listen to Mark we're so thankful for you and I hope we can keep giving you some great advice you're now today is all about what's going on with real estate why these price is going so high what can we do about it how do we sell our house for the most amount of money do you have to sell how do you get the most amount of money especially if you haven't done anything for your house and what about your selling and moving you have States like California where you have hundreds of thousands people leaving so let's get into it despite the uncertainty of a post-pandemic economy companies like Sunday is making it easier for investors to buy properties in Creek competition to drive the prices up for homeowners that means you we have pulling every Scout valuation officer and Shane still the chief marketing officer here to provide Insight on what's happening with real estate why these prices keep going up how long you think it's going to last okay and they're going to uncover the games that are played by predatory
Real Estate Investors things you need to know to protect your dollars now we've had so much in flux of emails whether you're on the left the right the middle it doesn't matter people are concerned about the new Biden tax proposal we're going to talk about what's in it and more importantly can't do nothing about their proposal now because it isn't light yet but what you can do right now to reduce or eliminate your taxes how last year the state of California head over six hundred and sixty-three thousand people move out of the Statewide they move they move to lower or no tax days the same thing is happening in places like New York where they just Institute a tax increase on the wealthy hey they have the ability to move so they probably will same thing has happened New Jersey Illinois and more the reality of States like California don't want to lose your tax dollars and do it will do everything in their power to keep you pay your going to have to learn how to pass your
States domicile Tessa to state registry steps we had Brad Galbraith the creator of change my domicile., that's changed my dumb ass out that cam to help good folks just like you do it right first of all I want to welcome Brad of the show Brad thanks for joining us here so much to be looking forward to it as I said before we got started heard about you being on here this is a big topic cuz taxes are going up all over from the state perspective and quite frankly many states become unaffordable so that one of the best ways is to move out of state help me understand how you got involved with the changing the domicile business so to speak many many years ago I guess maybe 20 years ago I was practicing law and Indianapolis and my wealthiest clients kept retiring and moving to Florida and they kept saying to me what what can you do to help us and I would say well I'm not licensed in Florida so I really can't I have to refer them to someone else and I realize pretty quick
play that referring away my wealthiest clients who are tuned in to this domicile issue probably wasn't the best long-term strategy so I took the Florida bar opened an office in Florida and ever since I've been helping people from higher tax states make that transition to Florida okay I just got out of my advisor friends and I've had even some client where they figure they can split a steak or one spouse is domiciled in one state and another and another and for some reason they're getting audited they're getting hit with penalties and all that kind of stuff so what determines somebody state registry where they're what states are domiciled in what determines that let's start there well for the most part when were using this term domicile it's good to specify that a lot of people called that residents must face technically call it domicile but you can of course have a residence in more than one state but you should for tax purposes only have one domicile and so there's a lot of your listeners certainly who pay state income taxable
but there is one state that is their primary residence and they may they may be paying state income tax for example in California because they owned rental property in California then they pay an Illinois because I have rental property in Illinois but they happen to be domiciled in New York and so their worldwide income is subject to tax in New York minus some of those taxes that are paid and other places so in general when you use the term domicile we're talking about really kind of tax residency know what determines your domicile is state-specific that's that's one of the things that we have talked about a little bit it's really not about the state you're moving to it's the state you're coming from because every state has their own laws that's just the way it works in our United States is not a federal law that determines which state you were dumb ass out in it's just a lot so there are unfortunately plenty of cases that I actually went all the way to the US Supreme Court about what state of person was domiciled in the argument often times was more than one state
Interstate federal government or federal courts you resolve this and and the answer has really been for the most part States going to have different laws if you aren't smart enough to make sure that you are only down the sound one stay there may be more than one state that tries to claim taxes and so we have to look very specifically to the state that you were trying to change your dumbness out from not just the state that you're trying to change your domicile to whether your New York Illinois California and New Jersey from the biggest tax dates you really need to make sure if you're going to be living in Florida or in Texas or some other like Tennessee tax free states you really need to look at the interview like for example you're from Indiana what kind of rules were down the sound test does Indiana have compared I can even be a little bit more specific than that I would say in general about half of the states in our country have a two-pronged on the south as the other states have a 1 prong down south
number of days test New York is probably the most famous of those states where they say if you haven't place of Abode if you have a place that you can live with a rented or own and you are in New York a hundred and eighty three or more days then you are statutory resident and there is no reason to the second prong of the test you are a resident of that state for their tax purposes and any of the other things you've ever heard of that you're supposed to do just simply won't matter about half of our states have a law like that even number of days the number of days can vary a little bit from state-to-state but most of them are in that six months and a day category Ohio is the one very unusual stay where where they don't have six months and a day that's 7 months in a day they actually are more liberal a surprisingly and I have said in order to hold on to as many people as they can who will continue to come back to Ohio and summer time or offseason they said you know we're going to be really live while you could be in Ohio up to seven months and if you intend
down south somewhere else we won't count that against they've gone the opposite direction of many states and their thought is that way the former residents can continue to come back to Ohio on second homes do their Banking and investing and go to the doctor there and give to Charities there and I've decided the best what's best but in general half of the states have this number of days test the second part of the cast in those States and the second part and the only part of the test in most other states is an intent test and it is based upon your subjective intent and unfortunately there's no there's no MRI machine that we can run a person through that that lights up green if you intend to be domiciled in Florida and lights up red if you'd have to be domiciled in the yard it doesn't work that way every state has come up with different factors that they may look to to objectively determine what your subjective intent might be and that's what really berries varies significantly stay in some states they say whether you have a safe deposit box
interstate is extremely relevant in another States that's just not even mentioned in some states and only a few States they stay where you give to charitable organizations really shows where your heart is and if you still giving your former State that's very indicative of your intent and yet other states a absolutely positively we will not consider that because we don't want to harm the Charity's it is very state-specific when it comes to down to those indicators vent only have one domicile where your tax date is he can't have two will certainly two states could argue about you do not ever want to have more than one domicile because that means two states are arguing over which one gets to taxi the most so that your disaster so we want to be careful so that you should not ever have more than one sick. Okay so we can you live in one state and be a domicile resident of another and you just talked about that 183 and stuff like that is there any states that have issues with that as long as we're talking about a second residence then Most states recognize
all states recognize that you may have a residence in their state and yet not be domiciled and their state now as you might imagine the people who are being audited for the most part those are people who have a helmet but also happened to be all of my clients my clients don't typically live where I live in Naples Florida year-round it gets rather warm and in August and they tend to head back North so most of my clients have a residence in more than one state and the fact that they have a residence in the Northern State doesn't mean that they are going to continue to be domiciled there but it does mean that we probably need to be even more careful and making that change of domicile it. The eyes cross the t's do as many things as possible so that it will be very obvious that the intent is to be domiciled in Florida despite the fact that there is still a home up north now the fact is but one of the analogies that I really like to use that is a visual that you can think up is an apothecary scale when looking to these and temp test
the various factors what we want to do is we want to pile up as many factors in favor of your low-tech state as possible I love whatever still weighs in favor of your Northern State and we want your low-tax new state to greatly outweigh the other state that doesn't mean that there's nothing in favor of the Northern State you may still have a resident there you may have children there you may still own a business there but what we want to do is we want to make sure that if a fact finder a quart or a taxing Authority would ever take a look and bought it or even litigate we want to be very clear to them that this case just isn't worth pursuing because you've done so many things too heavily weight that Apothecary scale in favor of your new stick things that people can do when we come right back so we're going to take a break got to pay some bills will be back in a few minutes with Brad Galbraith more expert advice for having a happier relationship with money still to come on the savings
Steve show
don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending left your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show busy saving with Steve. Us at saving with Steve. Us saving with Steve. Us will see you soon
welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton oh I want to welcome you all back to the same thing with Steve show I want to truly thank you for tuning in appreciate you letting your friends & Family Associates know about the show all the replays are available at saving with Steve. Us again at saving with Steve. You as if you're enjoying the stories of helpful information inside on saving receive that I encourage you to subscribe to our YouTube channel so you never missed a show and check out a few of our Affiliates at UK help radio BBS radio talk radio New York City e360 TV and Las Vegas TV network to solve problems and then lift your spirits as well as live a life of financial personal freedom Steve insiders Club at saving with Steve IUS you get all the replays exclusive gift from our gas and more so with that we have bread back we're talking about the factors that people look at
specifically are some of those factors that the Franchise Tax Board here in California or whatever it is you're in there in Florida will they be looking at is factors for somebody domicile provide a bit of a list of those things that are somewhat Universal but some of those gentlemen are the things that are really almost just obvious boat in that new stay if there's a homestead exemption you would file for that homestead exemption in your nice day and one thing that may not be quite as obvious but is true in many of our state's is changing to an estate there may be a form available either through a county or the State Franchise Board or the Department of Revenue the taxing Authority for the state that allows you
to complete an affidavit that says as of this date I intend to be domiciled in my new stick showing in Florida every county has one of those is called a declaration of domicile is completed in front of a notary and you just swear that that's your intent even record that with the county putting everyone on notice that you're in debt now that's not going to do it that's not going to be the determining Factor but it is very nice to have a very clear piece of paper that says it is my intent as of February 25th 2021 that I intend to be domiciled in my new stay so those are some of the universal things but there's a few others that are certainly worthy of mention and some of these are a little bit less obvious I mentioned a safe-deposit box earlier that's not relevant in every state but I would say in at least half of the states that appears either in case law or regulatory materials or state publication did that may be very indicative of a person is a cat if you
safe deposit box still in your former state it sounds like that really is your intended long-term best the place where you intend to eventually return and that could be a problem if you ever thought of it for domicile a couple other things that are interesting that people don't always think about one of those might be professional licensing many of us and many of your listeners are Professionals of one sort or another whether they're an attorney or a doctor or a nurse or a realtor or appraiser you name it did you think about it you register as a professional with your state that's a state database if the state wants to determine whether they're going to audit you are not a very simple thing they can do is look and say all right with this person is still a licensed physician in the state of California yet he says that he's now domiciled in Idaho that doesn't really make much sense to us we better inquire more so if you're changing your state of domicile it doesn't necessarily mean you have to give up your professional licenses if you're ready to even better
but in most instances people want to at least change from a resident license position as my example to a non-resident license position if there is no differentiation between residents and non-residents at a minimum change your address do not continue to use your end State address for those purposes use your new State address for those purposes yeah and that varies by state it's it's interesting though Most states will say that when trying to determine urine test again there is no MRI machine there's no easy way of determining that and it's just a little bit too obvious to just asked in a do you have a driver's license in your new state so what many states will do is they'll look to some of these less obvious thing that they believe it if you were really intending to change your town so you would probably find a dentist in a primary care physician in your new state depending on the state they may ask about other professionals Insurance professionals Financial professionals
how to professional tax professionals lawyer do you have these Professionals in your new state and a minimum do you have them in that new state and maybe still in your old stayed with him coordinating but there should probably be some connection with the new state that varies by state again interesting Lee I mentioned Ohio earlier Ohio when passing their laws made the the intestinal decision to not count those things that what they wanted to do is have have their state residents who are changing their domicile still go back for medical care in Ohio still have the Ohio Bank as their backs still have the Ohio investment professionals and CPA exam lawyer so it does vary by state but in most States your choices position whether you have that in your new state or your old State can be indicative of things like social and religious organizations your lifelong member of the Methodist Church in it would only make sense
but if you were changing your domicile to a new state that you'd probably find a Methodist Church or some church at least to attend in Florida if you're a lifelong member of the University of Michigan Alumni Association you'd probably join the University of Michigan Alumni Association of Florida are you would likely do this that's if you've been active in charitable activities you'd probably find some of those charitable activities to do it in your new stick okay so what are those things that people should consider before changing their domicile yes certainly I think it would only make sense to do it and make sure that it makes a one of the things that happens when you change your domicile is you give up your homestead exemption in your in your current state in order to get the homestead exemption in the new state almost every state says you can't have a homestead exemption homestead exemption there are for the most part reserved for those people who are domiciled in that state the homestead exemption is very significant just as an example in Michigan
exemption is very significant I've done the analysis for clients before where we ended up deciding that their savings on income taxes were outweighed by the additional costs of giving up the homestead exemption so so it is important to to not just hear that the new state is better but to do the financial analysis figure out whether it really makes sense to make that change and if you're going to do so when do the financial benefits as I told you in the beginning there's a number of people that we know that have gotten audited over this so how do you defend against an audit and how do you defend against it out of a domicile state that really is a great question because at the end of the day that's what we're all concerned about make the change and you get out of bed you know often times you've already lost if you're making a change in your going into retirement looking forward to spending some time with the kids and grandkids on the golf course and you end up in an audit that's just not what anybody wants I would say it is very important when you made your change of domicile to know the state that you're coming from the know it inside and out and that is the idea behind change my domicile.
making sure that you have a state-specific list to go through keep records of everything that you changed if your changing from a safe deposit box in your high tax date to a safe-deposit box Canelo tax state keep that information have the records as to when you change when you close the old box when you open the new one just gather information about the date that you registered to vote in your new state the date that you gave up your homestead exemption in the former State keep all of those records and importantly because many states do have this number of days test track your number of days so that if if you're asked you know for sure that you're in good shape so that even if you're audited on that number FaZe test that you're not going to run afoul of the law s.com how people can go and get involved with you how people get involved with that so they can change their domicile right so they don't get hit with the audit in the stress and all that
we have done is we have gone through the 20 highest taxed states and done a specific State analysis for each of the state's what we've done is we've outlined so that is easy to determine what is the financial benefit of changing from a state what is the income tax rate in that state how does the property tax exemption work in that state does that State have a gift tax in the state tax and inheritance tax so that you can actually go through quantify the difference between the two states and then what we have done is we've gone through the state statutes state regulations and tastes like for each state hold out the information that is specific to that state domicile decision so that is all in one place so that our clients can read through that and see what they should be doing and then we make it even easier what we do is we have created a checklist for each state very state-specific then based upon California for example what are the things the California says they will look at so that you can go through that check with
one by one keeping records as to the date that you need made each of those changes and so in doing that your chances of triggering and audit go way down and certainly if you were to be audited you at least now you. In the eyes cross the t's and that you're going to be successful in that audit if you've done the things on the checklist thank you Brad for being part of the show, the best way for people to get in contact with you get the information and someone correct absolutely calm and once they're there where you can download your package
Brad thanks for being on the show this is a big topic will probably have you back so stay safe down there in Florida will see you till the come I'm the saving with Steve show
don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money was Financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending left your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show visit saving with Steve. Us that saving with Steve. Us saving with Steve. Us will see you soon
welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton hey Brad just wonderful glad to have on the show get you the information because the last thing you want to do is be moving and find out you're stuck paying taxes from another state which is no fun and you know States like California New York Illinois to Olive High taxi they want your money I truly want to thank you for tuning in and appreciate you letting your friends family and Associates know about the show all the replays are available at saving with Steve. Us if you're enjoying the stories of helpful information inside on saving with Steve they may encourage you to subscribe to your YouTube channel so you never misses show by the way check us out at a field or affiliate that UK help radio BBS radio talk radio New York City every 60 TV and Las Vegas TV network all these networks are dedicated to empowering you to solve
uplift your spirit and live a life of financial personal freedom and also faucet is saving with Steve Sexton Facebook page and get helpful hand just an old tips for finances and check us out at the same thing with you. You ass where you can get all replays exclusive access to our after show videos guest gifts to take your life to the next level let's talk about that buying text Big Picture find tax report seeks to raise taxes by approximately 3.3 trillion dollars over the next 10 years the reality is a plant has several tax lens because his expected increase taxes on high-income earners corporations and a reduction of Taxation for lower-income earners the bottom line for his tax proposal is tax rules for individuals are in flux so we're going to possibly head up so I'm going to possibly head down so again I want to make sure you're very clear this is a proposal this is politicians posturing this is trying I'm trying to get leverage you see it on the news media
it's designed to make you anxious when be very clear nothing's in La yet so here's what they're proposing first of all the corporate tax rate going to go from 21 to 26 payroll taxes currently you pay payroll taxes as an individual 6.2% in the company pays 6.2% unless you're self-employed with me to pay 12.4 all the way up to $148,000 for the people above $400,000 were they still have to pay that qualified business income if your small business are self-employed used to be able to duck 20% of your business income deduction would possibly get eliminated after mr. Biden higher topping converter tax rate so if you're just a gross incomes $400,000 you can go from a 37 through 39 point six text next piece at 15% once you hit over 400,000 you're going to pay 20% but if you head over $1000000 in dividends and capital gains the tax plan talks about increasing the rate to 39.6 +
the Medicare surcharge of 3.8 so that means you can get almost 44% itemized deductions now before the tax cuts and jobs act we had was called the Pease limitations all it happen is it would reduce the allowable itemized deduction for people with incomes over a certain threshold it would just turn it back what they're looking to do is Cap itemized deductions benefit at 20% for individuals with incomes over $400,000 one of the positive things that might come of this is replacing the traditional deductibility with refundable tax credits on your retirement plan contribution so that means if you contribute to your 401k you get a tax deduction right now and then your funds go tax-deferred under the proposal they seek to provide a tax credit for the amount that you contribute so that means if you're contributing $5,000 you get a $5,000 tax rate in a portion of that would be refundable also 1031 exchange
this has been on the board for many many years all the systems are looking away with doing away with 1031 exchanges so that means if you sell a property you cannot refer to like type of property that could happen estate and gift tax is currently the estate tax is 11.7 you have the ability to give 11.7 million dollars per person at you know you have to marry people it's twice right there looking to decrease the estate tax just 3.5 million dollars now they're also looking at living with a gift to only a million-dollar also increasing the state tax in from 40 to 45%. One of the big issues is the step-up in basis when somebody passes away they're looking at possibly eliminating and I think this is a bargaining point but if that were to occur many people who have family-owned business in the family for decades and decades and generations and generations would now be in a position to where that farm they have it's worth ten million dollars are now going to have to pay 3.8 million dollars in tax
is when it's transferred from a father to a son now that's going to create some issues why because you have a 10 million-dollar Farm they might only make $150,000 a year they don't have 3.8 million dollars in savings which would put him in a position to either have to pay for a very large life insurance policy. Rightsell the farm so they can toss them damaged across our farmers and others across the country on top of that there's some personal income tax benefits tax deductions for people child tax credits increased tax credits go from 2 to $3,000 per child at 17 or under an initial $600 for any child under this would benefit would be fully deductible so if you didn't make any money or made $30,000 a year you would likely get a tax refund for these credits cuz you wouldn't be paying taxes next is a child and dependent tax credit this credits Max is at $8,000 per child 16,000 for family and 50% of it would be refundable in addition there looking at a first-time home buyer tax credit offers up to a 15% of 50
thousand-dollar captured 10% of the purchase price for a new home buyers and and if it's would be refundable and advanced now that's what's going on there's a lot of people but here's the thing nothing's happened yet nothing is taking place one of the things that you probably want to look at here is this what can I do well first of all if you're in control of your income and your deductions you can stay hey look this is likely to take effect in 2022 okay so if you have control of your income you can take your income into 2021 instead of 2022 and move your deductions to 2022 instead of 2021 thereby reducing your taxes on capital gains you can look to reduce capital gains by offsetting games with Las investments just called harvesting I'll send your games with your losses utilizing installment sales contracts to defer the capital gains for 30 years down the road utilize nonqualified annuities
when income exceeds $1000000 in plans when it comes to itemize deductions you can look at your herbal giving make sure you have state and local taxes writing off your mortgage interest make sure you get everything you can when it comes to 1031 exchanges you'll have to utilize qualified opportunity zones where you can defer reduce and even eliminate capital gains installment sales contracts defer capital gains there's many things that you can do to make this work now when it comes to the estate tax limit you can utilize your turbo structures to reduce eliminate taxes you can you use a revocable trust to do that as well you could do the same thing for the lack of Step Up and face is one of the other things taxpayers can do to defend against taxes considered rental property real estate you got huge deductions for depreciation that effectively credit losses by cutting a cash flow invest in oil and gas contracts are going to need a advisor developer you can invest in
killer where you get a 26% tax credit on the gear not the property by the look the increase that up to 30% got to remember what's going on is what's happening in the future this year next year and how much who really knows the key for each person is to be a good suit of their own money by taking steps Now by discussing your financial and tax situation with a tax professional financial adviser make sure everybody's on the same page and be coming as soon as possible keeping more money in your pocket now is wells in the future so that at least amount of your money falls through the cracks to the IRS we going to have some more we had Brad Galbraith with change my domicile. Calm now we're going to be talking to you Sunday and Polina and Shane are very nice ladies next week we're talking about how much you need to retire so with that I want to let you know we're going to take a break pay some bills and we'll be right back more expert advice for having a happier relationship with money still to come on the saving with Steve show
don't let your financial woes keep you up at night and prevent you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues that could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending left your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve section of the saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the show Saving with Steve. Us as saving with Steve. Us saving with Steve. Us will see you soon
welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton and I want to welcome you all back to the saving was Steve I truly thank you for tuning in that preciate you letting your friends family and Associates know about our show all the replays are available at saving with Steve. You asked if you're enjoying the stories of helpful information inside and saving the Steve please join our dating with Steve YouTube page by the way check out a few of our Affiliates at UK help radio BBS radio talk radio in New York City e360 TV Las Vegas TV network all these networks are dedicated to empowering you to solve problems uplift your spirit and live a life of financial personal freedom now let's get to our most favorite topic today which is real estate I want a welcome Elina Richard Goff and then we are cheap valuation officer Shane Steele send these are the only Marketplace that connects homeowners looking to sell their house as it is to the largest network of invest
to ensure that their homeowners are getting the best highest possible offer on top of that we are pulling in here is going to share with us what's going on with this real estate market it's crazy we were just talking earlier my next door neighbor whose house is valued at $800,000 on Zillow for kicks and Giggles you put it on the market for 975 and sold it for 1111111 dollar it's crazy what's going on and I'm curious if you can give us some insight on what's going on with the real estate market planet is the people who already own their homes are slightly older than my profit and they're a little bit more at risk so they're afraid of putting their houses on the market they don't want a lot of people walking through their property holding open houses they also don't want to be looking for the next property to move in to downsize stick I said because they're more at risk at the same time people who were playing to buy a house for Aging in
starting a family the Millennials will have a job there seeing the interest rates drop so for them it's cheaper to buy a house right now and they're looking so we're in the situation where is the Flies down the listings in California sell almost 50% compared to a year ago and the demand is not so you seen this imbalance that's when the market is so hot and crazy how long do you think this Market will last till you know you know there's a lot of seniors they don't want to go out there and look for another house or have people tripping through their house because they're concerned about the pandemic but as we heard here in the state of California the governor's planning to have the whole state open providing a few things occur do you think that will continue that way or will they take an opportunity to start putting their house on the market cuz their prices are so high I think that we will see an increase in supply for sure at the same time the interest rates are going up a little bit the market will cool just a tiny bit but the Millennials are aging still over the nest
years will see another 15 million of them Reach that means in age of when they're buying their first property so we're in this house hunting market for a little bit of time and then other thing that happened to contribute to the supply shortage is that we don't have enough materials to build you home right now there is a supply shortage and it's going to take some time for the builders to ramp up production because for the last ten years they were kind of licking their wounds from the last recession when they got really hit so they were under producing and we don't see enough on the market I jumped the gun on you cuz I really wanted understand what's going on the real estate market because not only do we have people there's not a lot of inventory out there but in the same token just last year alone California last 663000 residents because they wanted to go to a lower tax date when it comes to Sunday your company how did Sunday get started what was the brainchild behind that
as they saw that there was just kind of a terrible experience for homeowners when they were looking to sell a house that needs love so if you're an owner of a house with faded or damaged maybe isn't quite ready for a new family to move you typically want to go find a property investor will buy the house as it is no put the money into renovated and then resell it and fortunately that industry has a pretty bad reputation there was quite a few predatory behavior is that are happening in that industry has been a terrible experience the homeowners to find us trusted by her in that situation and unfortunately a lot of these buyers are low-balling the walk away from offers they started this company with a mission to help homeowners get the best outcome when they're in that situation of needing to sell a house that needs love and we're taking a completely different approach which is rather than making an offer to the homeowner what we do is we Market the property to our database of property investors so rather than having to pick up the phone and call you know a handful of different
Buster's the may not be reliable we will Mark at the property in the Inland Empire we have almost 700 property investors that are waiting to find these properties as well so we do all the work to your package up the property with photos of 3D floor plan video walkthrough we have an inspection report none of that cost anything to the homeowner so there's no fees or just fell through a Marketplace and then we Market the property to those you know it was 700 and Buster's across the Inland Empire so they're competing to buy the house and that drives up the price so that investors are sure to get the best possible price we disclose all of the offers to them on average in your area homeowners are getting 13 offers the spread from the highest to the lowest offer is usually around 7 so you can really see that range that you get in unless you've talked to the right investors you may not get the highest offer so that's that's what we're solving for is how can you Market your property effectively to
bedded group of investors in the local area I find this interesting being in the financial business I have some people come to me and they've had some things happen their life whether it be health issues or kids that they tried to help start business within their money goes away and they were like they have to downsize and all that stuff and they don't have the money to refurbish even for their house in order to where they can sell I'm curious if there's got to be other reasons why besides those two what do people typically coming to you hey this is the reason why I need to sell my property located so that's probably the number one reason and he knows, you mentioned a lot of people who are older and retiring they're looking to downsize their looking to get tomorrow portable markets and so that's definitely the component of what we're seeing people coming to Sunday and in some cases you know they built a lot of equity in the home but they don't necessarily want to put the time in the money into that whole check list of things there a real estate agent
listed on the market and so it just saves I'm a ton of time and money to be able to sell it as is through a marketplace where they can connect all these property investors World Casino and property from their parents and instead of arguing what to do about it they sell it then they show the money we were seeing some of the more heartbreaking stories I think around colder than what happened with covid-19 it's stuck with me was a woman who escaped her abusive husband and she had to move in with her mom and they sold the property at her mom's properties so the husband doesn't know where they are and they moved it's not attended the one-off but occasionally you were here we were able to solve this for them and often times of financial distress that could be related to medical bills and just the cost of living especially here in California so in some cases people just don't even have the choice they don't have the money to be able to fix up the house
turn on the market where we also see in some cases people who are landlords and they have rental properties and they're just young looking to offload a rental property I'll say they been to Home Depot 1610 time that you've told me about the family issues and things like that a lot of people you know it seems like they don't know where to turn in so they look at commercials on TV and they see the guy that says he'll buy any house for cash and all that stuff but they don't realize what goes goes behind that and my understanding and we talked you said this earlier there's a little bit of predatory type a behavior taking place could you show me how that takes place so we can open that up to people understanding oh my God I didn't realize it happened so if that's happened to me I need to look out for that
play in the space it's it is a zero-sum game for these buyers right there looking to drive down the price far as they can because that means more money in their pocket which is now in contrast to our model which is the highest price we can get our interests are aligned with the homeowner some of the tactics that these investors use and there's actually a whole industry of educational workshops and coaching to help train property investors on how to find desperate sellers I mean it's really an industry that has a terrible reputation and there's like he's known tactics that they use to try to find people in these difficult situation maybe don't have all the information they don't know where to find you and you know they might offer an offer that sounds really good and then later walk back that offer or as they walk away from the transaction altogether and some of the you know the worst thing that we prayers and in some cases will still present what sounds like a great offer and then they'll send in somebody to do an inspection it turns out it's like one of their buddies
it's coming in as a phony inspection of course they come back noting you stand for repairs but they've made up to essentially walk back that offer so it's it's essentially a bait-and-switch tactic before somebody walks through your system how would that work for dimple somebody gives you a call and say hey I need help so do they contact you by phone is it an app to fill out on your website how does that work, and it's Sunday still like the ice cream with an e at the end and there you can fill out the form to request to talk to one of our customer advisor so they'll give you a ring or you can just call us directly there's a phone number on the website I want 800 number and your number so if somebody has one 800-214-4426 call to 800-214-4426 again that's one 800-214-4426 so after they give you a call what happens in
through a process going to explain how it works now there's some additional information about the property in the situation and our goal I said with our mission is to help homeowners get the best outcome when it's time to sell their house and in some cases that means like maybe we're not the best outcome so our job is to really figure out what their situation on what's important for that one for a timeline what's the condition of the property so they gather all of that information over the phone and if it's a good fit we will schedule an appointment for one of our local market experts we have a bunch of people in the Inland Empire and they'll actually come to the property and visit the property just a gathering additional details prior to coming to the property we will have put together an estimate of a range of what we think we will get in our Marketplace from investors because we've done lots of due diligence about the property reflect that, some sort of estimated a construction budget all ahead of this appointment and then we're sort of validating things in that walk through at the appointment will present what's our Marketplace agreement which is
a 30-day agreement that lets us Market at property to the investors' on 700 and Busters in Inland Empire will spend a few days preparing a property profile with photos with the floor plan on with all of the details that an investor would want to see including like a video walkthrough and inspection report all of that information means that you don't have to have to take a break so everybody will be right back with more with Pauline and Shane is Sunday more expert advice for having a happier relationship with money still to come on the saving with Steve show
don't let your financial woes keep you up at night and prevents you from living a life of Financial and personal freedom hi I'm Steve Sexton post of the saving with Steve show where did he talk about the ins-and-outs of money those financial issues it could be costing me thousands of dollars causing stress keeping you up at night we're going to talk about money tax reduction saving more spending left your investment risk management retirement and everything is so sweet with you having a healthier happy relationship with money soon as you've ever dreamed of living a life of Financial and personal freedom you owe it to yourself and your family to tune in to the saving with Steve show join me Steve sex and out of saving with Steve show as we talked about everything under the sun when it comes to money to learn more about the Showbiz it's a team with Steve. Us that saving with Steve. Us saving with Steve. Us will see you soon
welcome back to the show that is here to help you achieve your financial goals it's the saving with Steve show now here's your host Steve Sexton hello welcome back to the show this is Steve Ervin talking with shade and Paulina is Sunday we've been talking about how Sunday helps people that are looking to sell there at his house as Shane calls it houses that need a little love and we just talked about once you make contact we're going to have somebody come over the house we're going to review the house we're going to give you an idea with the values the house and then they're going to set up a contract with you for 30 days so they can Mark at the house and I'm with that I'm going to give it back to Shane and so a property profile a few days without setting foot so you don't have to have lots of people coming through the house and then within 7 days you'll get all your offers back and the Inland Empire is an average 13 offers that are coming back weave
how to arrange ahead of time and so our goal is to get you know as many offers as we can and those get presented Tuesday of full transparency and then the homeowner gets to decide if they want to take one of the offers and if for some reason you know you decide you don't want to sell the house or don't want to sell through Sunday you can walk away after 30 days just out of curiosity or most of the offers all-cash offers there's no contingencies and that's one of the things that is really important about those investors that they are fully vetted fully vetted local investors they've agreed to our terms & conditions you know we've done our homework to make sure these are Reliable Tires so that the seller can really count on these offers when they come through and then in terms of the timeline we can close in as little as 10 days so if somebody's in a hurry Super Bass the other advantages because it's as you can leave anything behind so if you're ready to go and you got some old stuff and you just don't want to have to clean it up that's an advantage we also off
a $10,000 cash advance before closing because a lot of people are dealing with some financial situation where that can really help with the transition whether it's paying bills or helping with the move and again there's no fees I'm so the way that we make money is a percentage of what the investor is paying so again our our intentions are completely aligned with helping homeowners get the best price is more of you get paid and so everybody wins it's great to Pauline it when you take a look at a house when you're valuing it what are the things that you're actually looking at everything and that's the most important thing is your friend's house that's down the street from the best high school that's really important so schools are very very important whether it's on a busy street weather at the hospital nearby it has to be accessible Community is very important you can usually tell whether it's walkable and then depending on where you are and what's valued more by the community
I see you can also run comparables you can see what kind of property is appreciated quicker that's how you select what you value this house again so like for example I've always carry with a bunch of people the other day when it comes to like Landscaping have a backyard looks all that kind of stuff how much does that play into the valuation because investors will they will do landscaping so when you want to meet on house marketable when you want to sell it it's really important that Landscaping looks good no matter if you're selling it off Market to a property investor that's not going to factor in because that'll be part of project going to walk in and they'll probably power wash the house repaint the inside Regis some appliances to make sure they're updated redo some flooring and then they're on their way is that pretty much the size of it or
clean the office and Shane mentioned $70,000 is because every investor they have their own secret sauce right so they can save on materials they can save on sometimes labor costs they have different teams that work very patiently they know how much they need to spend on the rehab and they also have their different strategies so we're one investor thinks that all they need to do is send you no power wash it and put it back on the market the other one will come in they will rip everything out remodel it entirely and they will sell its higher because they are bedding or maybe they already have an end the buyer write the told him that that's what they want they have a family that wants to buy this house and they know that they can sell it prior to this is one of the reasons why we're seeing this range in the offers are premium right now right with everybody spending more time at home having an outdoor space so the Landscaping
and before that a lot of people will have buyer's remorse people who bought houses with huge pools once they finally opens up and they will figure out exactly how much you need and then says well the fact that we are the only ones without a pool on the Block we use our pool as much as they do which means they don't use their pool
the government spent $100,000 put in a pool and you know they don't even use it for that once a year where they have everybody over but that's about it I'm just interested in those things so I just have this one question when investors they all have their own secret sauce that they all have our own little profit margin in mind what is the typical investor looking to make when they sell and they buy a property put money into it and flip it an Investor's smaller investors will depend on their volume so if they have more properties in one month that they are flipping babies can accept if they only have one project that they're working on that they can Source they will probably look for a bigger margin and that's interesting that you ask that because I just looked at it the other night when you have highly appreciate you will see that investors are taking a bigger projects because it's harder for them to find these deals so they will be looking for projects that they can flip in a year as opposed to just six months and they will do
so they will add a second story to the house so they will add a master suite to the house they will do an addition or they will really expensive or footage they will vary from investors invest investors is because there is a huge range in so that their profit margins ranges are there is a rule of thumb in the industry is called the 70% rule how they buy which would be 70% of what they think the value of the property is going to be once it's fully remodeled I get it. So when I'm trying to make sure everybody understands this is a business like anything else if people have a plan and they want to stick those plans so if you're dealing with somebody who has whose predatory they're going to do whatever they can to make sure they make their margins really big and for somebody like yourself who's bringing together these 700 investors that are looking to get their piece of the pie and this is a wonderful market so somebody has a little bit bigger house they can actually probably do better is that right
Sara Lee be very good at this business and they're trying to buy very deep to make sure that they don't lose money right because the more money they make on the purchase the less they're worried about being able to remove the risk of front so another words are typically the new people who don't know what they're they should be doing or how to do it properly and they just been to one big class and their college and you'll see a lot of these coaches and there are many books so I can and lectures and yeah so what other words are there paying somebody 30 or $40,000 to learn how to do this we better follow the rules or follow what they've been taught when you see a lot of this predatory behavior because you know when there is a lot of profit to be made that's when you see a lot of people trying to chase that process I want to thank you for joining us today and could you do me a big favor and just
share how people can get in contact with you because I know there's a number of people who would need your help there in a situation where they don't want people tracing through their house cuz our demographic is perfect for what you guys do so please share that with us all and that farm where you can call that one eight hundred number in fact that you're an investor and if she's been working with us you know they're not all friends for a we have a bunch of great ones that were working with and we have a process for how they can go to investor. Sunday.com to sign up there and then we also work with agents because a lot of people who are in the situation you need to sell a house that needs love you know they're working with an agent to help them get the best outcome and we partner with agents as well so agents can leverage our platform to get access to the type of buyers that their client might need they can actually send us an email if you're an agent and you're interested in Sunday in partnering with us can just send an email
info at monday.com remember everybody this is not Sunday in the day but it's Sunday like the ice cream so is s u n d a e. Calm and if you want to get ahold of Sunday you want to dial one 800-214-4426 and if you're a realtor listen to this hit info at Sunday or investorettes Sunday get in contact with him they're looking to help you just like you can help them I want to thank you all for being here because what you're educating our listeners at can make a big difference especially in this market place where we've got somebody turning 65 years old almost ten thousand a day so there's a lot of people in a situation where they might need your help so thanks again for joining us I'd like to have you on sometime in the future come back for an update and see how things are going great day be safe and healthy okay Shane and Polina from Sunday if you have a house that needs a little love
you don't want to fix it up to you with three letters deal with agents all that kind of stuff and you're looking to sell it by all means get in touch with Sunday at 1 802-144-4216 we did have Brad Galbraith talk about changing your domicile so if you're looking at selling your house and moving out of California and move into a less tax day or some other place you want to make sure you change your domicile which is your state registry is if you don't State of California might be following you asking you for some money so you want make sure that happens now next week we're going to be talking about not only saving some great guess but we're going to be talking about the things you need to do how much you need to save for retirement and with that I want to thank you all for joining us hope you have a wonderful week looks forward to seeing you next time have a great day bye bye this is C-section with shaving Misty thank you for joining us for the saving with Steve show hosted by Steve Sexton to learn more about the show and how to become a guess or sponsor visit saving with Steve.
US Vets saving with Steve. Us join us again next time as we continue to talk about everything under the sun that relates to you having a healthier happier relationship with money this has been the saving with Steve show hosted by Steve Sexton