Ep. 52 – Hurricane Ian, Real Estate Investing, Airbnb and 1031 Exchange with Real Estate Investor Steve Krupp

Matthew Maschler:
Welcome to the Real Estate Finder podcast. I’m Matthew Maschler, real Estate Broker with signature real estate finder.com or real estate finder.com. Signature Real Estate Companies and with me the co-host Stacy Garcia. Hi Stacy, how are you? I’m great. How you doing? I’m good, I’m good. And then joining us in the studio today, we welcome back, uh, Steve k Croup. Um, he, uh, if you remember Steve, uh, I don’t, I was gonna look up which episode it was, but eight Earl episode eight <laugh>. I I knew it was early on in the podcast. He has a tattooed on his arm. Yeah. Early on in the podcast, uh, Steve came in to talk about, um, uh, vacation rentals, uh, Airbnbs and Picassos and vacation rentals. And Steve has, um, a lot of experience with vacation rentals and, and some new, um, experience since episode eight. Cause that was such so long ago. Well, it was about a year. Yeah. Welcome back. Thanks.
Steve Krupp:
Yeah, it’s great to be here. I was really excited when you were like, yeah, let’s, let’s talk about it again. So we let’s
Matthew Maschler:
Do it. A lot’s changed. A lot has changed. But before we jump into, um, Steve and the, uh, vacation rental market, I need a couple minutes. I don’t just wanna talk about the storm, uh, that just passed, passed through Florida, did a lot of damage out on the West Coast and some damage, uh, on the East Coast because there’s such a, such a large storm. Um, and, and what that means for our market, uh, for our real estate market. Um, on the, on the negative side, I mean, besides a million other negative things, uh, we are going to see insurance rates go up in Florida. Uh, there was so much damage from the storm, uh, infrastructure, bridges, et cetera. Uh, that there, there’s no way that the, um, insurance companies are gonna absorb that without, uh, increases. And, uh, what, what my concern is, is for people who, um, have, uh, mortgages, uh, where the insurance is rolled into the mortgage, a petty, a petty mortgage where their principle interest taxes and insurance are, are rolled into their payments.
They’re going to, people are going to see their mortgage payments. It’s supposed to be fixed, right? You got a 30 year fixed mortgage, people are gonna see their mortgage payments, uh, skyrocket almost because of these increases in insurance premiums. And that is gonna force, uh, some people to sell because they’re gonna be unable to afford, um, their, their current homes so that they may not wanna sell, but their, but their payments are are, are gonna go up significantly. But where are they gonna go? Well, that’s a different story, right? <laugh>, that’s a different story. What about refinancing? Well, yes. Look, all those things will happen, right? Some people will have to refinance. But refinancing in, you know, rates, rates are up.
Steve Krupp:
Florida lost 25% of their housing stock. Yeah. So, you know, it’s a lot of displaced people are now looking for a place to
Matthew Maschler:
Live. Ah, but in the way of the before, it’s, that was the next thing I was gonna talk about, right? The insurance, insurance rates going up, which will cause people who are in contract right now, or not right now, but in the future, uh, current homeowners payments to go up. So that’s troubling. It can actually lead to some foreclosures, um, if people can’t afford their mortgage. So that’s troubling. Um, insurance payments, insurance premiums going up, um, can negatively affect the housing market in, in a lot of ways. But what you said, were they going to go, um, and this now lack of housing stock, um, certainly anyone who was planning on coming down, right? You, you were going to rent something in Naples or Bernita Springs or Right. That, and you have a deposit, but the, but the unit’s uninhabitable, right? Uh, if, if the, that per person still wants to vacation in Florida, they’re gonna look for vacation rentals that are around. So, so demand will actually increase, right. Which is good for the market, but, um mm-hmm.
Steve Krupp:
<affirmative> Yeah. On the east coast,
Matthew Maschler:
On both coasts where there’s not so much damage. Right? Right. Right.
Steve Krupp:
That’s true. Anyway, where you
Matthew Maschler:
Still buy it and then Bradenton Sarasota is, is did, did much better. Then north as
Steve Krupp:
You go north
Matthew Maschler:
It gets less and then Yeah. And then anywhere in the panhandle, so on, on both coasts, um, you’ll see, you’ll see more demand, um, for, uh, for, for vacation rentals and for existing product. But
Steve Krupp:
Both, but, but the companies that are, um, selling it have, uh, sent me reports on the upcoming year and they’re forecasting a decrease in demand because of the economy. Yeah. And also they said that Airbnb, um, inventory had doubled. Now that’s not housing stock, it’s just people who purchased and then turn the houses into Airbnb. Right? Right. So that’s another competitive factor in the Airbnb market.
Matthew Maschler:
Right. But, but even, you know, like even, even in a, in a bad economy or a bad, a bad market, right? Uh, a vacation in Florida can be less expensive than a vacation in the Caribbean. So that you, you’ll see, so while you’ll see, um, you know, if, if there, if you’ll see the demand shift, right? You’ll see a different, uh, customer, right? Because if, if the lower end customer is out of the market, but maybe the next rung of the market comes down into more affordability. Yeah. So I People
Steve Krupp:
Who’d fly Yeah, they’ll drive,
Matthew Maschler:
Right? Maybe they didn’t renew their passport, so they wanna stay stay in Florida. So, so there’s, there’s that balance will always exist. Um, when you talk about housing stuff, um, my uncle lives in Punta Gorda, which when Hurricane Charlie came in, in 2003, I think it was, and just wrecked that region. And that’s right where this storm hit, right? Uh, people said north of Fort Myers, but it, it really, I mean, the eye was, came right in between his house and where we had dinner to celebrate his 80th birthday <laugh>. I saw, I saw it on a map. Wow. Um, 155 mile wind winds ripping, uh, roof tiles off his house. Um, but 20 years ago that caused such a, uh, building infrastructure caused such a boom, right? Because so much construction and inventory and growth happened in the last 20 years that it actually was an economic driver. And we’re gonna see that there’s going to be a lot of construction on the west coast. So a lot of that older products, newer product, uh, survived the storm, uh, much better than older products. So a lot of older products will be rebuilt. It’s,
Steve Krupp:
Uh, sad to say, but yet it’s, there’s a great opportunity here. Yeah. You know, a lot of people suffered a great loss and, and for them, you know, my heart breaks, but,
Matthew Maschler:
But, but, but the money, the federal money going in and the, and the insurance money going in and the rebuild money going in for the next eight years, there’s going to be tons of construction jobs, opportunity and growth and rebuild on the west coast of Florida. Uh, that will replace a lot of that housing stock. So there’s, there’s a good economic driver, there’s a lot of economic loss, but there’s a good economic driver, um, going in, you know, every construction crew from Tennessee to Georgia is heading down to the west coast of Florida right now, on the negative side, we’re gonna see, uh, a shortage of contractors, a shorting of materials, et
Steve Krupp:
Cetera. Yeah. And the usual scam artist that Florida is right for
Matthew Maschler:
The scam artist. If you get a, by the way, if you get a text from Netflix or Amazon, I
Steve Krupp:
Get a text that
Matthew Maschler:
Ignore it, ignore its, my daughter was convinced that there was a problem with our Netflix account. I said, Lindsay, it is my Netflix account. Mm-hmm. <affirmative>, Netflix doesn’t know you. You have your own profile on Netflix, but you don’t have your own account. They don’t have your cell phone number. Right. So whoever that is, that’s catfishing you and pretending to be Netflix. Yeah. Just ignore, there’s so many text scams. Um, the, the big scam, obviously your antivirus is out of control and, uh, they, they get access to your bank account somehow. Yeah. I’m,
Steve Krupp:
I’m worried about people facing, like property scam when someone trying to steal their deed or their tax things or, I mean, yeah, there’s all sorts of,
Matthew Maschler:
Of tons of criminals out there looking and scam artists looking for opportunity.
Steve Krupp:
And especially when people are, are hurting, you know? Yeah. Cause they, they need help.
Matthew Maschler:
So, um, so yeah, on the negative side, uh, the price of insurance, um, you got that text today from Amazon. One of our producers in the back got that text today from Amazon. Oh my goodness. So yeah, on the negative side, the biggest concern for me in the market that I see is, uh, insurance, uh, rates skyrocketing for all
Steve Krupp:
People. And that’s right in front
Matthew Maschler:
Of us. And that’s right in front of us. That’s happening right now. That’s going to cause some softness in the market that’s going to cause some amount of foreclosures or for some cells. Uh, but then again, there is still demand. So the, you know, just because foreclosures come in, but that attracts investors. Uh, so we
Steve Krupp:
Will, even with the hurricane coming. Yeah. Um, Stacy sold the house in a day I did for people in California, because, you know, they’ve got an earthquake. I mean, they’re like, Hey, there’s a natural disaster wherever you are, you might as well
Matthew Maschler:
Go. Let’s revisit this. What day did you list that house?
Staci Garcia:
Well, it was coming soon until Friday.
Matthew Maschler:
You listed the house on Friday. I everyone knew a hurricane was coming on Friday. Mm-hmm. Yes. On Friday. Everybody saw the storm. Everybody knew it was heading to Florida. Oh yeah. We, I, you know, we knew it was coming to the west coast. So here in Boca, I didn’t carry that much. You know, I had paper knew,
Steve Krupp:
We knew I
Matthew Maschler:
Had enough toilet paper and water for Covid.
Steve Krupp:
Now it’s butter by the way,
Matthew Maschler:
But, well, butter disposes. I still have my 2020 toilet paper and water <laugh>. This is true. Listen, I’m there. So,
Staci Garcia:
So, so do I actually
Matthew Maschler:
Listen to house on Friday with a storm dead set heading to Florida. And,
Staci Garcia:
And then Saturday we had open house. I had a really good turnout for a while, uh, that my open houses have been like ghost. You know, there’s no one there. It’s crickets. But I had a really good turnout in and behind the guard gates too. So that makes it even more important cuz they tried to get through the gate, you know what I mean? It’s not like George Random driving around. And then, um, yeah, I got a cash offer that day and went under contract. And then today’s the last day of the inspection period.
Steve Krupp:
So she sold the house in a day. Yeah.
Matthew Maschler:
Super agent Stacy today. So you, you, you went to contract Friday before the storm mm-hmm. <affirmative>. And the storm was Well
Staci Garcia:
Yeah, but it was, it was, um, yeah, it was coming. You had to
Steve Krupp:
Give, I think you had to give them an extra day or two. I
Staci Garcia:
Did. Because of the, because of force by your Right. That’s what I wanna talk to you about.
Matthew Maschler:
Possibly possible. What day was the original inspection period? Supposed to end
Staci Garcia:
Friday, I think Friday. It was five days.
Steve Krupp:
But Stacey, even, even if it was a hurricane today, it’s like, no, no, no, you want two extra days, you’re gonna pay for it
Matthew Maschler:
<laugh>. So, all right. So sa so listed Friday before the storm mm-hmm. <affirmative>. And then the inspection period was during the storm. Right. You know, I, I talked about Tuesday when the storm was in Cuba, uh, and there was a tornado in Delray. So Tuesday was when, when our area was affected. Yeah.
Staci Garcia:
Monday was the inspection.
Matthew Maschler:
The inspection was Monday. Mm-hmm. <affirmative>. So they were, they were able to get the inspection. Yeah. Done. Um, and then you guys went back to life on Monday. So why did they need more time?
Staci Garcia:
Uh, I think they wanted to know that after the storm passed that the house was gonna be intact. Yeah. They inspected, they weren’t sure whether it was gonna come back. So they want to inspect it after
Matthew Maschler:
This storm. Sure. We got a lot of rain and water and, and scare on Tuesday and Wednesday,
Staci Garcia:
Monday when that was going on in the inspection. Mm-hmm. <affirmative>, like we were getting those feeder bands, you
Matthew Maschler:
Know what I mean? Right. Right. So, so,
Staci Garcia:
So, so the buyer said, well, what happens if right now I know that we’re buying this house and we, what happens if something happens to this house while we buy
Matthew Maschler:
It? So now, so now on Thursday they can come in and see Yeah,
Staci Garcia:
They
Matthew Maschler:
Did on Thur. So why did they need time?
Staci Garcia:
Because it was, unless the money was
Matthew Maschler:
Due, was was Friday the original inspection date or wouldn’t you time it was a deposit issue.
Staci Garcia:
That’s Yeah, it was a deposit issue. Mm-hmm. But we said, you know what, you can, you can’t extend it. Cuz I do understand the scenario.
Matthew Maschler:
So, but you send it until Friday or Friday from a,
Staci Garcia:
The money we extended until the deposit, we did extended till Friday, but they had to pay more.
Matthew Maschler:
The inspection period originally ended on Friday.
Staci Garcia:
Um, I’m trying to think. No, it was a three day ins, it was a five day inspection. It
Matthew Maschler:
Was a five day from Saturday, so
Staci Garcia:
Would’ve ended Wednesday.
Matthew Maschler:
So that’s why you gave ’em two days. So you gave, you gave ’em from Wednesday to Friday was two days. That makes sense. That makes sense. You gave ’em from Wednesday to Friday on the inspection. And when you’re saying the money, you’re talking about the second deposit? No,
Staci Garcia:
There was no second deposit.
Matthew Maschler:
How much was the first deposit?
Staci Garcia:
10,000.
Matthew Maschler:
And that’s usually due within three days. Yep. So
Staci Garcia:
It was, it was
Matthew Maschler:
Due. And so that was the 10,000 was during the hurricane Wednesday during the hurricane?
Staci Garcia:
No, the 10,000 was due before that, but Yeah.
Matthew Maschler:
Well, if you want to come through Saturday, Sunday, Monday, Tuesday. Yeah. During the, during, during the, during the rain. So yeah. You, you know what’s interesting, the reason I talk about first and second deposits mm-hmm. <affirmative> is generally the first deposit is the binder that’s just to hold the, the, um, right. The contract. And it, it used to be always be a thousand dollars. Right. And you would write the check and it would be, um, with the offer. The problem is now that we’re doing electronic signatures and we’re emailing offers, you can’t email the check. So that’s why that first deposit became a three day deposit. The second deposit’s the real deposit. And usually we schedule that for the day after the inspection period. So if you extend the inspection two days, you, you, it’s rightful to, to extend the second deposit three days. But they combined the first and second deposit. So you had two different issues going on at once.
Steve Krupp:
Right. Well from the, from the seller’s point of view, it was, okay, you wanna keep my house off the market for a couple more days, so gimme a couple more dollars.
Matthew Maschler:
Yeah. Right. And it didn’t cost them more money. Nothing. Right. It
Steve Krupp:
Was just, it intended to buy it, the
Matthew Maschler:
Inspection.
Staci Garcia:
And actually at that time, damage, everyone was closing down at shop, you know what I mean? Down here, we didn’t know what was
Matthew Maschler:
Gonna what day
Staci Garcia:
Wednesday.
Matthew Maschler:
Yeah. We, and you couldn’t. Right. So we put it out the
Steve Krupp:
Table, put so much per day,
Matthew Maschler:
Many days. Did the banks close? I can’t remember if the banks closed.
Staci Garcia:
I know that our office
Matthew Maschler:
Closed. Our office closed. So like, I’m not a, I can’t, I don’t deposit the checks. I give it to the office. The office makes the deposits and the offices were closed so they couldn’t deposit the checks. But, uh, and I don’t, I don’t remember, I don’t remember hearing that the banks were closed. Um, oh. But it’s very interesting. So force you, you asked about force majeure. I did ask that. So force majeure means act of God and force majeure comes in when, uh, you can’t perform under the contract due to an act of God. Mm-hmm. <affirmative>. So it really has a much more to do with the closing. Yeah. Um, I would argue, and it’s not really clear, um, if you that, like if I’m in the inspection period and I can’t inspect, right. Because if my inspection period ended Wednesday and my inspector canceled because we were getting tons of rain on Monday and Tuesday mm-hmm. <affirmative>, um, I couldn’t inspect, I, I would almost argue that force majeure should extend that deadline. Uh, from my reading of the contract. It’s not clear. Um, I stopped caring when I realized that, uh, the buyer can cancel the contract. So,
Staci Garcia:
Well that was what I was worried about actually the
Matthew Maschler:
Buyer canceling.
Staci Garcia:
Yeah. Because, um, one of her concerns was there’s a storm out there and I know this house has a brand new roof and brand new gutters and even has accordion shutters mm-hmm. <affirmative> and all of that. But what if the house isn’t here next week? You know what I mean? What if when the storm passes, there’s no house or it’s damaged. So really her concern was we wanna inspect it after the storm where our inspection is today before the storm hits, the storm’s coming. And once the storm passes, is it okay if I have this, the house inspected for the four point, um, wind mitigation, uh, for the insurance? And I said, oh, absolutely. I understand your concern. You’re concerned, yeah. You want the hou the inspection was great. Right. And she wants to make sure that the this stayed that way it stays in the same condition and we can’t guarantee it cuz there’s a storm.
Matthew Maschler:
Right. But my point, you asked me about force maures it, but my point is, um, I was looking into it and, and it’s not clear to me, and I was going to take that further. Right. But what I realized is there’s actually a stronger provision. The buyer has the absolute right to cancel. Right. So, um, the buyer could simply cancel. Now. Well, the thing is what
Staci Garcia:
She didn’t wanna cancel. Yeah,
Matthew Maschler:
I was gonna, second time you interrupt me when I time, sorry, <laugh>, of course she doesn’t want to cancel. Right? The seller doesn’t want her to cancel either. Right. But the threat of cancellation is what brings both parties to the negotiation table to come up with a reasonable accommodation. Right. So you don’t have to invo if you’re in inspection period. You don’t have to invoke force maur and say, I can’t perform under the inspection period. I have an automatic, um, out extension. Right. The claim is an au See, force Maur doesn’t give you an out. You, you said out force Masure does not give you an out at all whatsoever. Force Masure gives you an extension of a deadline. Mm-hmm. <affirmative>. So if you were supposed to close Wednesday Right. And the closing office was closed, right. The, the, the title company was closed on Wednesday because of evacuation orders in the state of emergency. That doesn’t give the buyer the right to cancel, doesn’t give the seller the right to cancel. It gives the, um, the, the contract has an automatic extension. Um, now there’s a, a, a time limit and it’s probably 30 days, right. Um, it could be seven days. It just depends on, it’s
Steve Krupp:
A declaration of emergency perhaps from the governor.
Matthew Maschler:
It’s in the con it’s written in the contract and in in any contract it’s negotiable. But the Florida as this contract has some standard terms. Right. The force provisions are in there. You can simply read them and see if you have, um, you know, it goes, you get a reasonable amount of time. And when, when it’s open, but no more, then sometimes it’s seven days, sometimes it’s 30 days. Depends on what it is that you’re claiming. And that’s only
Steve Krupp:
If people are fighting about it. But like you said here, both people want the deal to go through.
Matthew Maschler:
So, but, but, but not even fighting about it. Right. If, if you, if if your mortgage contingency has to be in by an X day, uh, then, and you can’t possibly perform under the contract, you get this automatic extension from Force Majority. Yes. So
Steve Krupp:
You don’t lose your
Matthew Maschler:
Deposit. Right. The clear. Right. Right. Right. So the clear thing to remember is force majority does a lot of people think, oh, force majority, I can cancel the contract. No, you can’t cancel. It gives you automatic extensions of deadlines. Now, what I was saying about the inspection deadline is I don’t know how it, if it automatically affects it, I stopped researching it because I didn’t care so much because, uh, of this stronger argument that you can simply cancel and that brings people to renegotiate all inspections. Right. The bo the only reason a seller ever agrees to any kind of credit whatsoever is the buyer has the threat of cancel. Right. So, so you said, what if the buyer doesn’t wanna cancel? Well, of course they don’t. We had one in our office. Wasn’t one of my signature, one of my finder agents, but it was another signature agent, uh, represented both sides.
The asking price was 4 75, the offer was 400 and seller. Agreed. Um, but the south side, well, it’s as is now. It’s 400. Right? It’s 18% off, off. Ask Buyer does an inspection, buyer has the balls to ask for a credit based on the inspection after that $75,000 discount. Now I say balls, what? I don’t know. Cause it wasn’t my deal wasn’t my, wasn’t my deal is did the inspection uncover something the buyer didn’t know. It was, it was a, it was a, there was a roof leak. Did the buyer know that when they came in, they knew it was a, you know, knew it was a fixer up or knew there was, it was an old roof. Knew, knew it was a roof leak, and that’s why they got such a great deal. And then they still had the balls. Right. But if they didn’t know, if the inspection revealed new information, then I, I withdraw that and the buyer is absolutely right to ask. But the only reason the seller agrees to, in this case it was $5,000 is the threat, is that the buyer leaves. And even though the buyer, we knew the buyer wanted it, and some sellers will say, I’ll put it back on the market. Right. If the buyer doesn’t want it, I’ll put it back on the market. The seller can’t cancel on the inspection. It’s the buyer’s option. I
Steve Krupp:
Have an interesting question. Yeah. You know, you, you list a house buyer makes an offer. It’s less than your listing price and now you’re gonna make a counter. What if you decide I want a counter for more? Can you go above your listing price?
Matthew Maschler:
It happens all the time. Huh. E ESP especially, um, right From November of 21 until May of 22, everybody was starting low. Right. And then we were, they were having bidding wars. So, so yeah, it happens all the time. Someone lists a, a property that’s rightfully worth four 30, uh, for 3 85 and, um, they were expecting, uh, to get more. So, um, yeah, I’m not,
Staci Garcia:
I’m not a fan of that, but I can stand
Matthew Maschler:
It. So, um,
Steve Krupp:
You know, oh, so it’d be somebody who’s listing low on purpose and looking to
Matthew Maschler:
Mm-hmm. <affirmative>, but maybe they didn’t list low on purpose. Maybe they listed low and didn’t realize. Right. Not until they got the offer. They, they listed for 3 85, they realized they should have got more, someone offers them three 70. I had to
Steve Krupp:
Correct the agent that listed our condo. Yeah.
Matthew Maschler:
Machine listed for 3 85. You got an offer of three 70 and you counter at 400. Right.
Steve Krupp:
She was missing the whole cast cap, cap rate aspect of commercial
Matthew Maschler:
Property. Yeah. So, um, so yeah. Um, so what’s interesting is, um, you know, do you remember crazy Addie? Yes. Right. Uh, electronic stores, car dealerships, they put an net in the newspaper. Um, they have to honor the price. So crazy. Eddie says that this television is going to be $299. He gets to the store, it’s $350. Um, he gets shammed up. I I said crazy, Eddie, because he did violate this little, often you see an unbelievable price for a car in the Sun Sentinel. Um, they actually sometimes will put the VIN in the vehicle identification number. So then when somebody says, Hey, I sold this Mazda three, right. Uh, for this price. Oh, I’m sorry, we sold that one. This one that’s the exact same is more, you know, you’re, it’s, it’s, it’s called bait and switch. That’s, that’s what I’m trying to get at.
Why can the electronic store and the car dealer, um, why do they have to honor their prices? But real estate doesn’t and, and real estate doesn’t. Right? Isn’t it bait and switch? Um, that’s the right if, if I list for 3 85, but I have no intention of accepting 3 85, did I commit bait and switch? And I’ll tell you why. I see you thinking, right? You’re trying to think both sides in, in, in real estate, the offering price is not a binding offer in a, in a car salesman. In a, in, in that kind of commercial, in that circular, it is, if public says bananas in 99 cents, bananas have to be 99 cents real estate because they’re making an offer. It’s
Steve Krupp:
A bit in the ask market versus one that’s just
Matthew Maschler:
Retail. The, well, the store is making an offer, and then the buyer’s there to accept the offer. Um, in real estate, when you list a property for sale, you’re not making an offer. That’s why I, I don’t, I hate when people say offer that, uh, because you’re not making an offer. You’re making your, you’re soliciting bids. It’s invitation. An interesting distinction. It’s an invitation to bid distinction. Asking price in the MLS is an invitation to bid, which is why if three people come and they all make offers, now as a seller, am I obligated to all three people? Right. So, and that’s also why the buyer makes the first move. The buyer writes the offer. Um, because the seller, the seller’s advertisement, it’s not an offer for sale, it’s an invitation to bid. Right.
Steve Krupp:
So it’s not like a first come, first serve. Right. I I didn’t imagine getting multiple offers at the same time. But you’re
Matthew Maschler:
Right. And, and one of the reasons for it legally is there are other terms besides price that have to be negotiated. Right. Um, so when, when someone lists a property for sale, um, it doesn’t, you know, cash financing, how many days still closing, how many days is the inspection, how many days does the deposit, all of those other terms are, are, are not in that, in that offer to sell. Right. That’s why it’s not an offer to sell. That’s why it’s an invitation a bit. Right. Plus’s plus property,
Steve Krupp:
What you’re leaving behind or
Matthew Maschler:
Not. Right? Right. The personal property, you know, the inclusion stuff. And that’s why it’s not a binding offer to sell. And that’s why real estate agents can commit a beat and switch. And in the, in this market, um, buyers felt, buyers felt that, that it was a bait and switch. Right. Right. They’d come in and see a house and sure, it’s not fair. The price was so much more money. But when Publix wants to sell anonymous for 99 cents, all the, there’s no other terms to negotiate. And that’s why it’s a binding offer for sale.
Steve Krupp:
Very interesting distinction.
Matthew Maschler:
Yeah. Very interesting distinction. And it’s something that you will not hear, uh, at too many places besides the real estate.
Steve Krupp:
Well, that’s explains why I’m able to respond with a higher offer. Mm-hmm. <affirmative>. So I got an answer, but now I’ve got a reason. Yeah,
Matthew Maschler:
Yeah. Right. Most real estate agents will give you an answer, but I don’t know any of that’ll give you that reason. Yeah. You have to really understand this stuff. And, and, and I just, it’s just, I’m almost 50 and I’ve done been doing this my whole life mm-hmm. <affirmative>. So, um, you know, and it’s, it’s, it’s, so I sometimes I say like, I always say that in my bio that I’ve been doing this my whole life. Mm-hmm. <affirmative>, but like, I’ve been doing it my whole life. Like, like I, I, I, I was, I was coming down to Florida doing real estate deals with my dad when I was 12. Carrie, this briefcase. So, uh,
Steve Krupp:
Well, I’m new. I’m, I’m fairly new. Cause you’re fairly new. Yeah. In only a couple of years, but we, we really scored a home run on our, on our Airbnb sale. Yes.
Matthew Maschler:
All right. So fill me in. You, you, you sold your Airbnb. Well, we
Steve Krupp:
We’re listing it Uhhuh <affirmative> for five 80 Uhhuh <affirmative> and, um, five
Matthew Maschler:
80. Yeah. You didn’t pay. And how much did you buy it for? I was gonna say you didn’t pay five 80 for that
Steve Krupp:
House.
Matthew Maschler:
2 2 77 9. How, how long ago? Three years. So 2 77, 3 years ago, five 80. So before Covid
Steve Krupp:
No, we’re right in the midst. In other words, when they shut down all of the travel industry in Florida mm-hmm. I bought the condo. It’s kind of like buying
Matthew Maschler:
Summer of 20. It’s
Steve Krupp:
Kind of like beachfront now. Yeah. In Fort Myers.
Matthew Maschler:
Right, right, right.
Steve Krupp:
And so we bought the condo, we’d lived in it for months, and then we turned it into an Airbnb. We had it on for a year. It paid us $60,000 and now we’re gonna sell it for five years worth of returns up front because it pays to do so. Yeah. And, and there was a lot of, Hmm. Some work involved with running an Airbnb. You know, it’s a great idea. It seems really fascinating and exciting and you meet people and, but after a while everything gets old.
Matthew Maschler:
You know, it’s a very interesting concept that you just said. Right. You knew you were making 60,000 a year, so you said five years upfront. Right? So selling now versus doing work for the next five years, you decided, wow, I’d rather not do work for the next five years and get the same amount of money now. Well,
Steve Krupp:
It’s more than that. The Federal Reserve has decided to cr crunch the real estate market to dust mm-hmm. <affirmative> and I don’t want to be one of the victims. Right. They’re also destroying the retail industry. People recession travel. So I don’t know how the next five years are gonna fare, even though the hurricane helped me. Right.
Matthew Maschler:
But, but, but I like, I like this concept of, of valuing the business on five times, you know, five times what? Yearly? Well, that’s where
Steve Krupp:
The cat profits comes in because the real estate agent wanted me to list for less mm-hmm. <affirmative> a lot less. And I was like, well, wait a minute. You’re not looking at the commercial aspect. Right.
Matthew Maschler:
Because, because then it’s not worth it to me. Right. Uh, I, I don’t want two years of returns or three years of returns up upfront. You know, my son is taking, uh, AP economics and he’s a senior in high school, and he’s saying everything he’s learning is stuff that I’ve talked to him about. But here he’s learning it like form with formulas and it’s very Right. Very formal and the, and the reasons. But I never took an econ class in my life. But this yearly valuation is something that I always think about when I, when I value my properties. Right. I, I, you know, and to me, eight years was always the break even. Um, but everybody can, everybody sets that number differently. Right. When you, when you buy a hotel or a restaurant, something we, we like it. Some people look at 10 years. Yeah. We
Steve Krupp:
Like the idea of the rental, but the Airbnb aspect of it is, it’s, it’s too much. Yeah. Every week you have these people coming and going and
Matthew Maschler:
You’re, you’re, you’re running a b Airbnb.
Steve Krupp:
Yeah. And even though we’re not the ones cleaning it, you’re still involved. Yeah. Yeah. And, uh, so we’re moving away to a different, in the, in the next property, we’re gonna be doing this furnished finder where we rent by the month, by three months at a time. It’ll be much less work on our part. And it should be another
Staci Garcia:
<crosstalk>. Matthew and I were talking about that last week. Uhhuh <affirmative>. Right. You said, I get this, I get good money and I don’t hear from my tenant who, who rents annually. Hopefully I never hear from them. And I still make great money. Right. Once a year, um, with a renewal option. Why would I wanna rent every week if I could rent once a year?
Matthew Maschler:
Right. I can make more money gross on an Airbnb. Right. Cause the rentals is higher, but on a, cause the rental’s higher. But I, I’m, I have to, I have to stock it with the toilet paper. Exactly. I have to do the work’s more intensive. My annual rentals are passive income. I generally don’t hear from someone maybe once or twice in the course of the year. It’s
Steve Krupp:
More than just the stocking to get you, you, you’re striving to get these five star reviews mm-hmm. <affirmative>. So now, you know, I’m constantly texting people and communicating with them so I can get good marks on my, you know, I don’t need good marks on.
Staci Garcia:
That’s a whole nother podcast right there. The, the five star reviews, because, um, we had talked about that. The, that becomes extremely important, right? Yeah.
Steve Krupp:
That’s part of my selling price now.
Matthew Maschler:
Well, as a, as a customer, right. Someone who rents on v rbo, I’m looking at the reviews mm-hmm. <affirmative> and, um, I’m looking at the reviews and I’m looking and, and I want the responsiveness from the host. Right? Right. If I, if I send the host a question, if I’m looking at five different properties and I send a host a question, and if he doesn’t respond for four days, well
Steve Krupp:
That’s, that’s the rental company. My response comes in after they’ve made the reservation. But here’s a, but my reviews from the people who, who rented and stayed there, the, they demonstrate my communicative skills.
Matthew Maschler:
You’re responsible for all of it. Whether you take a portion of it and assign it to a different employee or worker, it’s a different story as a customer. I don’t see all the different people in parts or beyond it. That’s true. You said, okay, this percentage, there’s a, there’s a term we learned in law school about property rights. They call it a bundle of sticks. Right. You take up big bunch of sticks, you’re starting a fire and, and you hold it in your hand. Right. Each stick represents a different, right. You have all these different responsibilities as an, as an Airbnb host. You, you’ve offloaded it some to a management company, but, but the customer doesn’t see it. A customer wants to see
Steve Krupp:
A monolithic
Matthew Maschler:
End. If you, if you didn’t have that company, you’d have to do more work, but then you wouldn’t have to pay them. Right. So you’d get more dollars. Right. So there’s always a shift of how much work you wanna do versus how you’re gonna paid as an annual, as a renter, as a landlord of an annual rental, I have very little work to do. Correct. Uh, and you, you, you have to either pay someone to do the work or do the work yourself for these Airbnbs, and you’ll get a higher rate of return for more work.
Steve Krupp:
For more work. And we’re ready to move on to the in between. Hmm. But now we’re gonna look at the, the, the three month rental.
Matthew Maschler:
And my father traveling
Steve Krupp:
Nurses,
Matthew Maschler:
My father always would say this, and especially like someone like, like for starting to teach, right? Like when my kids were like 15, right. Um, that the way to make money is work risk or knowledge specific knowledge. Right. And, and those are the three ways to make money. So if you want to take, you have, you can do the work, right. Get a job, do the job, work, construction, plumbing engineer. Um, you take risk like you do with real estate or stock market, or you have some kind of, uh, knowledge, maybe knowledge that someone else doesn’t have. Right. And that’s people who maybe, uh, trade stock or, or, or, or make other, make other investments based on the knowledge. And then you need a combination of ’em, right? You’re gonna take, you’re gonna take your know, take the work that you do and add the knowledge that you have, and then you can create, create wealth and create money from that.
Steve Krupp:
I, I spoke to a couple of gentlemen that had, that were doing rentals and mm-hmm. <affirmative> and Airbnb and, and tent regular tenants. And, and he was also, he said to me right now, things are kind of shifting in the market, especially with recession, but he, he felt the sweet spot was single family homes. Because the next generation, and even the ones who are a few years be, I’m in my sixties, so maybe the ones in their fifties or forties, they, you know, or, or the ones who are trying to buy houses now and can’t. There’s gonna be a larger and larger rental market
Matthew Maschler:
Mm-hmm. <affirmative> for single family homes for single.
Steve Krupp:
Right.
Matthew Maschler:
And well, because all covid d you need that space. People need a little bit more space. You’re safe at home, work from home school, from home. So you, and then the condo has a lot of shared amenities. So people in the con who are in condos during the shutdown of Covid, when the common areas were closed and gyms were closed, certainly as a society we’ve moved towards more value to that sustain family home. The
Steve Krupp:
Affordability for the, for the next generation is mm-hmm. <affirmative> is very questionable. And then the point you raised with insurance, when I bought the house in Palm Coast, the insurance company, I stupidly was being upfront and sent them a copy of my inspection report. And then they answered back with, oh, you need to fix these three things before we’ll even give you insurance. And my sent
Matthew Maschler:
The inspection report to that insurance company. Yeah.
Steve Krupp:
And, you know, I didn’t, he’s anonymous guy. I had nothing to hide. And they told me, well, you know, you can’t buy your house. And I said, I don’t need you. So I bought the house with our insurance, and then I insured it afterwards from the same company who had insured it for the 15 years prior without any incidents. And we haven’t had any since. The point is I could make that choice and a lot of buyers can’t. So I’ll be able to rent the house I can buy because I can decide whether I want the insurance or not. Mm-hmm. <affirmative> and not everyone has that ability.
Matthew Maschler:
Absolutely. So, so, so renting the single family home, because there’s gonna be some, some more demand for it, more appreciation for it. Certainly we saw appreciation of single family homes go higher than condos during the, during the last two years. And as people can’t afford to buy a home, if the choice becomes buy the condo or rent the home, maybe they’ll be more willing to rent the home from you. Definitely.
Steve Krupp:
Well, I’m looking for the, we were lucky enough to buy a home and then subsequently they decided to build a hospital a mile from the home. So I’ll have a constant market or try of traveling rental
Matthew Maschler:
Professionals and that’s good. Could be a good Airbnb also for people who want to live near, stay near the hospital for a certain duration.
Steve Krupp:
Right. But I’m not gonna do the two day and three night rentals like I did on the beach because it’s too much work for me to constantly live after them and look after the people who are working for me. It’s another responsibility I don’t want.
Matthew Maschler:
Right. But are you still thinking short term even though longer?
Steve Krupp:
Maybe I’ll
Matthew Maschler:
Mix it up a week, minimum a month minimum. It’s,
Steve Krupp:
It’s probably gonna be by the month. By
Matthew Maschler:
The month. Yeah. Yeah. Or a month minimum. Right.
Steve Krupp:
Because I want, I I, I’m tired of the, of the company that sends anybody to my, Hmm. I want to personally and I don’t want to do that so often. So rent by the month or by the three months or something and Right. I don’t have to deal with that.
Matthew Maschler:
Some friends of mine had a, had a bachelor party in Miami. They rented a, a house for three nights. Right. That’s not what you’re looking
Steve Krupp:
For. No, definitely not.
Matthew Maschler:
You want someone, you want someone who’s, you know, you saw the hotels go into that extended stay model. Right? Right. So you want that extended stay, that executive who’s in the area for a few months, really, uh, where a sweet spot’s going to be, especially on the west coast, is these construction workers and all these people that are coming in from, and they
Steve Krupp:
Need a place temp
Matthew Maschler:
And they’re all gonna need a place to stay. They’re, I mean, right now, contractors and, and work and construction workers are coming in from Texas, Tennessee, and Georgia and everything down to the west coast. They’re gonna need a place to stay. And they’re the ones that can sign the month to month leases. Right. Or the six month. Right.
Steve Krupp:
And they have dependable income and Absolutely. Yeah.
Matthew Maschler:
Very. Absolutely. So, um, so I was, I was a little sleeping when, when you texted me the other day that you wanted to come in and talk about e x and I said, yeah, sure. Come in. And that’s Tuesday at 11. So I want to go look up, um, what you said in the text that you wanted to talk about. Cause I think there was some things that you didn’t, um, well,
Steve Krupp:
It was the experience of having the Airbnb for your year mm-hmm. <affirmative> the kind of stuff that, uh, people might be interested in. Hey, I’m, I wanna get into this business. What’s it sort of like? And you know, so we had, we learned two things, the whole business itself, which is why we wanna sort of move into something less intensive. And then we had the, the real estate experience of, of finding the broker and, and, uh, even the commission, you know, first it was decision should I sell or not? Then it was decision. Should I list or not? Should I do it myself or not? You know? And so I finally realized that and Stacy’s been invaluable in, in thank you helping me make those decisions with real estate agents because of her experience with you guys. So, right. That really helped. I
Matthew Maschler:
Was looking for the word cap rate. You wanted to talk about cap rate. Yes. And you mentioned it before, uh, that the, that the listing agent, uh, said,
Steve Krupp:
Well, they, they were just looking at the property value in terms of a place to live, and they weren’t thinking about the commercial aspect. And so
Matthew Maschler:
There’s several ways to, to value a property. Um, you know, you get an appraisal and there’s several ways to evaluate it. And the most common in residential real estate is the cops, comparable sales. What did other similar homes sell for? Those are the comparable sales. But when you’re, um, buying or selling a business, it doesn’t matter what comparable buildings sold for, it matters how much does the business make, um, the income. Right. Because you could have a $300,000 condo and a $400,000 condo, and the $300,000 condo makes more money. So to an
Steve Krupp:
Invest, some have different rules, right. And they say you can’t rent it all and then no income.
Matthew Maschler:
Right. So the investor, he doesn’t wanna know what the similar unit sell for, he wants to know how much can I make? And that’s called the cap rate. And that’s what I was hoping you would explain to our audience today.
Steve Krupp:
Yeah. So when I bought, when I bought the condo, it was 2 77 and then we put a few thousand in and we stayed there, whatever. So I’m just thinking, okay, at 300,000,
Matthew Maschler:
The basis of what you bought for was 300,000. Right? So you wanna a rate of return.
Steve Krupp:
And so I was making 60,000 a year for that year. That was 20%,
Matthew Maschler:
20% rate of return. Phenomenal. Nothing to sneeze at and willing to do a little bit of work. Right. And change the toilet paper for that kind of rate of, of
Steve Krupp:
Return. Right. And now I’m still, when I’m selling it at five 80, it’s 8.5. But yet for, for people, that’s still a healthy return and they, they might want to be in Airbnb and the flexibility
Matthew Maschler:
Is great. And so I wanna break down what you said. You bought the property for 300,000, so you were making $60,000 a year. Right? It’s a 20% rate of return now that the property is worth 5, 5 85, you didn’t pay 5 85, you only paid 300. But if you value the property at 5 85, if I sold it right now, I’d have 5 85 in my pocket and you wouldn’t have to change the toilet paper. Right. So if, so, if I sold it right now,
Steve Krupp:
I’ll buy it. Not change, it’s
Matthew Maschler:
Worth 5 85. At 5 85, that 60,000 a year is no longer 20%. Right. That $60,000 a year is eight and a half percent. Right. Eight a half percent is still a good rate of return. Exactly. But is it worth the work, or can you take that 5 85? Well, the other, to find something else, the other
Steve Krupp:
Aspect, its, there’s nothing wrong with the 60,000 a year and even if it dips some, so if it’s 45 or 50, it’s still a very good return. Mm-hmm. <affirmative>. But the point is that the real estate aspect of growth seems capped because of the nature of the economy and interest rates going constantly
Matthew Maschler:
Upward. Now, uh, did you sell it already or
Steve Krupp:
I, it, we had the re then that was where Stacy helped me figure out, okay, let’s list it and what percentage, and then my wife Lauren is South African and we were sitting having coffee and this gentleman said, oh, there’s a South African lady down there at Caldwell Banker. And so we ended up listing it with a, with, um, because of where she came from. Uhhuh
Matthew Maschler:
<affirmative>. But so a realtor is not allowed to do that. A realtor can’t choose a client or choose a customer based on their national origin. That would be a violation of fair housing. A customer is absolutely allowed to
Steve Krupp:
<laugh> all
Matthew Maschler:
Day long. You are allowed to choose your realtor based on their national, national origin. So if anyone out there is looking for a Jewish realtor, feel free to call me <laugh>.
Steve Krupp:
But my realtor really is Stacy. Yes. No matter what this lady said, I’d be like, Stacy, what is she out of her mind? And you know, that’s
Matthew Maschler:
So, um, but you listed it already.
Steve Krupp:
So we, we signed a contract with them. It’s not on the MLS yet. It’s a pocket listing for your listen as if the podcast comes out before she gets it on ll
Matthew Maschler:
We do have one signature agent up in that area. Um, uh, Dina Kleiner, we should, uh, reach out to her and let her know. But, um, there’s, there’s something we should talk about. Have you, have you looked into the 10 31 exchange yet?
Steve Krupp:
I I, no, I have not.
Matthew Maschler:
Okay. So you really should, right? Because you sell this for 5 85, they’re going to say the go government’s gonna say, okay, you bought order for 300. Right? Maybe you put in another 25,000 over the years you owe taxes income tax on $200,000. Right. Um, if you are thinking about buying another investment property with this money, right? I don’t know what you’re thinking of doing with it. If you gotta invest it in the stock market, if you gonna just put it in the bank account, I I
Steve Krupp:
Taxes may, I may rein. And that the question I have is what’s the timeframe for 10 31? Because I intend to reinvest mm-hmm. <affirmative>, but I don’t know if I want to reinvest in real estate right now in mm-hmm. <affirmative> in that market to waiting for when I hear the first maybe rates are gonna drop mm-hmm. <affirmative>. Right. Then it’s time.
Matthew Maschler:
So I think off the top of my head, it’s 180 days.
Steve Krupp:
Okay. So I’m six months. Yeah.
Matthew Maschler:
And one thing you can do is do the 10 31 exchange. And if you don’t buy something, then you just get your money. So, so you just hold
Steve Krupp:
On. Is it any property or is it only a rental
Matthew Maschler:
Property? Okay. It’s r it’s real estate. It has to be real property.
Steve Krupp:
Okay. So I’m gonna buy a house, so then I won’t have the profit.
Matthew Maschler:
Right. So, so you can’t, um, so you can’t sell your real estate and buy a tractor, right? Right. You can’t sell your, uh, real estate and buy a boat. I’m buying
Steve Krupp:
A home
Matthew Maschler:
Or dock. But you do have to to put it in a different account. No, no. You can’t touch the money. Let, lemme go. Okay. So you, it’s a 10 31 exchange. So you have, you need a, just like you have a title company that holds escrow, you have a 10 31 enrolled agent. Um, if you touch the money, you, you’re taxed on it. So the sale proceeds go are held by a 10 31 company. And then when you buy the property, the, the money’s released from the 10 31 property. That way you never touched the money. I
Steve Krupp:
See. And then I don’t have to pay any income tax on it and
Matthew Maschler:
Right. Well, you, it’s a deferral.
Steve Krupp:
Okay.
Matthew Maschler:
Right. Because then you buy the new property, there’s no, you, you didn’t, all you did was exchange one property for another property does not trigger income tax. You’ll eventually, when you sell the property, it’ll tri trigger an income tax. Right. But just like if you held onto your property, you wouldn’t pay income. Right. You, you’re not paying income tax on the 2 85 that you made. Right. That’s called phantom income. You made it, but you didn’t book it yet. Right. If you buy a stock and you sell it and buy another stock, you’re gonna pay income tax. There’s a special exception for real estate, um, that you can sell the one piece of real estate and that way someone’s living in, in New York and they wanna sell the, sell the real estate and buy real estate in Florida. Um, there’s a way to
Steve Krupp:
Do that with stocks. It’s, it’s by selling puts.
Matthew Maschler:
Well, yeah, because you didn’t actually legally sell the property. You just created a, a fiction, you know, and it’s, every democrat candidate for president always talks about closing this 10 31 loophole. Um, and loopholes are part of the tax law. The government creates tax law to control what we do. Right. Um, the government wants us to sell real estate. Uh, the stock market is very liquid. People buy and sell stocks all day long. The government doesn’t need to come in and encourage people who are just holding stock and doing nothing with it to sell it. Uh, they do want to encourage people who hold real estate to sell. And why is that good for society or the economy or the community? Well, if you have an old shitty shopping center, right. And all around it’s being the areas being redeveloped, the community doesn’t want that old shitty shopping center. Sure. But you’ve owned it for a very, very long time. You’ve owned it for 50 years, it’s worth 10 million. And if you and your basis is very, very low, so if you sell it, you’re going to have to pay half in tax in taxes. Now you have $5 million to invest and your cap rate on the $10 million, you were making a great rate of return. Now you take that $5 million to try to invest it somewhere, you’re going to cut your return in half. Right. So no rational seller would do it. So I
Steve Krupp:
Should pay you and not my account.
Matthew Maschler:
<laugh>. Well, the accountant didn’t suggest doing a 10 31 exchange. Well, I
Steve Krupp:
Just asked him, how much tax will I pay?
Matthew Maschler:
If you’re se anytime anybody’s selling, uh, investment property, they should be thinking of the 10 31 exchange. Right? Right. So, but I’m, I’m, I’m going to the Why Society benefits from a 10 31 exchange. Now you’ve sold it the real estate market’s, not that liquid. We’ve created liquidity. Now you can use, now you put that $10 million in 10 31 exchange, you can invest that 10 million somewhere else. Right. And if you buy an old decrepit property somewhere else and invest it and build it up, now both properties Right. And your basis goes
Steve Krupp:
Up cuz you put the money into invest it so
Matthew Maschler:
It works. So, so society benefited one from the sale and two from the reinvestment of the new property. So, so 10 31 s are, are a good thing. Even though in political season it’s easy picking to say we’re gonna close that loophole. Right. Because what’ll happen is closing the 10 31 exchange will kill the real estate market. It’ll kill liquidity and it’ll, and it’ll, and it’ll slow down development. So if you are going to, if you want to take, put your money to new work and invest somewhere else for a higher cap rate, as long as you’re staying in real estate and
Steve Krupp:
What you’re stating is the law of unintended consequences. Yeah. Which no politician will even think about, unfortunately. Well,
Matthew Maschler:
If, if you’re saying the 10 31 is bad, you have to understand what it is. Right? Well, right what it is, why did someone create it in the first place? Yes. Right. Understand what it is before you say it’s bad, it’s bad because rich people aren’t paying taxes. Well yeah. But you’re getting a benefit and it’s okay. Once you understand what it is, then you can decide if you wanna close that loophole. Right. Um, so, but you said, what do I have to buy? You could, you can sell farmland and buy a condo. Right. As long as it’s real estate. So what’s funny is that there’s some funds like REITs that are specifically set up for people who are selling 10 30 selling properties and that don’t wanna pay their income tax. Then they invest in these REITs that are set up as the buyers. Does
Steve Krupp:
That take away the six month, um, deadline?
Matthew Maschler:
Well, yeah. As long as you Right. That’s why these things were created. Sometimes 10 31 buyers are desperate. Right.
Steve Krupp:
They’re running
Matthew Maschler:
Out of time. I’m running out of time. I have, I have 30 days to close. Hey man, I’m so
Steve Krupp:
Glad you told me that cuz now I know we have buyers
Staci Garcia:
Have into, we’ve run into a couple of people that were under the crunch.
Matthew Maschler:
Yeah. If, if, and, and, and that could be good. They could be real buyers, but so many people that call me on ten thirty one s are full of shit. Right. <laugh>. But, um, but yeah, you’re a real buyer. I have this money, I have to put it to use that buyer. What’s great about that buyer, they don’t need the best investment ever.
Steve Krupp:
They just want a good cab
Matthew Maschler:
Rate. Right. They need a good investment. Right. They don’t need the be. So some of our investors are looking for the deal of a lifetime. Uhhuh <affirmative> great deals. They’re still looking for good deals. But, but it’s just more important to do the deal. They have to do the deal. Right. Even if they park it in a hou, they buy a house
Steve Krupp:
Like an option that
Matthew Maschler:
Expires and then sell that same house a year later.
Steve Krupp:
Uhhuh <affirmative>
Matthew Maschler:
Just to buy themselves time. So somehow, how does the
Steve Krupp:
Re the re works? It gives you an extension?
Matthew Maschler:
No, no, it’s you’re buying
Steve Krupp:
Shares amount of real
Matthew Maschler:
Estate. You’re buying shares. So you’re, you’re buying real estate so that now you just own it and you get your
Steve Krupp:
Dividend. So as soon as you get it, I mean as soon as you sell it, are you back to 10 31? Or does that somehow get you out?
Matthew Maschler:
I, no, no, no. You’re, you’re, the, the money, the dividends that you’re paid are your, are, are, are your rental income. Okay. So you pay in income on your rental income. Right. You pay the, you pay income tax on the 60,000 a year that you’re making. Um, because,
Steve Krupp:
So, and then the read of course, that goes with, so now you can pick REITs, but, uh, are the specific 10 31 REITs? It, it,
Matthew Maschler:
It’s, it’s not a reit. It’s similar to a reit. It’s just set up perfectly Exactly. According to these laws to to be a real estate investment pool.
Steve Krupp:
I’ll have to look into
Matthew Maschler:
That. Yeah. I can tell you a flying the name of one or two of them. Um, but yeah, it’s a, it’s a, sometimes it’s a good thing for someone who just doesn’t want to do the work anymore. Right. Um, I just
Steve Krupp:
Wanna park it somewhere because I do plan on buying a house mm-hmm. <affirmative> in the future. And then, so that’ll be a perfect, I know I’ve got six months. I can just leave it in cash or I can put an arena and gain some
Matthew Maschler:
Income. Can I tell you a fun little Sure. 10 31 hack. Of course. All right.
Steve Krupp:
I’m sure you’ll listeners will be happy to hear
Matthew Maschler:
It. So, residential real estate, um, is not considered investible investment. So when you, another tax loophole, right? Right. When you sell your primary residence, I think the first $250,000 of gains is tax. I’m married
Steve Krupp:
To luxury woman, so she gives me another half a quarter, a million dollars. Thank you sweetheart.
Matthew Maschler:
Right. <laugh>. So, so if you buy a house for 400,000 and you sell it for 900, if it’s your primary residence, there’s no income tax. 250,000 a person, 500,000 for a married couple, no income tax on the $500,000. Now, if you have a much, much bigger gain, uh, you cannot 10 31 in your primary residence, you have to say, is this re, is this, is this a primary residence, not an investment, right. Or is this investment? Uh, so for instance, your investor who likes to live through the construction Yep. Is if they live there for the two years mm-hmm. <affirmative>, they can sell $500,000 tax free. Right. They lived there for only one year. And it has to be two years of the last five years. So you can live there for a year. You can rent it out for three years, and then you can live there for another year, two years of the last five years. Um, so you live there for a year. You rent rented out. So like for instance, I had a house that I lived in when I was renovating my house.
Steve Krupp:
Right. How do I remember,
Matthew Maschler:
Had I lived there for two years, I could then rent it for three years and then sell it. Um, and it still claim it’s my primary residence. Um,
Steve Krupp:
Right. I wasn’t there long enough.
Matthew Maschler:
Two of the last five years, years. Right. Let’s say, um, you sell your primary residence in Palm Beach County and you have all these investment properties in, uh, in, in, in St. Augustine area. Um, you 10 31, this one, and you buy a new investment property and you rent it out, you Airbnb it, you rent it out for a year or something. Uh, let’s say you take the one with the most value and you decide, you know what, we don’t wanna, um, rent this one out anymore. We’ve decided to live there. Mm-hmm. <affirmative>, we’ve decided to move in. So you, so you take the proceeds, right? You, you said 300, you sold it for 5 85, sell 5 85, rented out for a year, Airbnb it, and then at some point in the future you decide that that is your primary residence. Um, you moving,
Steve Krupp:
Right? Well, from what you’ve just said, it’s, I think it’s simple for me. We’re gonna take the condo proceeds. So we’re planning to move to the villages. Mm-hmm. <affirmative>, where, um, it’s like summer camp for adults. It’s a mashup of Disney World.
Matthew Maschler:
So you take the 5 85
Steve Krupp:
And we’re gonna buy a house.
Matthew Maschler:
You buy the house in the villages and then, and you rent it out. Well,
Steve Krupp:
We’re gonna
Matthew Maschler:
Live in it. Don’t listen to me. Yeah.
Steve Krupp:
<laugh>,
Matthew Maschler:
Listen to the man. You have 5 85.
Steve Krupp:
No, we’re gonna rent out the pa Wait, we
Matthew Maschler:
Have,
Steve Krupp:
Wait, we have another house we’re gonna rent out.
Matthew Maschler:
Listen to me for a second. Okay. You have 5 85. Yes. You buy the house in the villages and you rent it out. You did the 10 31 exchange. You took a 300, you didn’t pay the 2 85. Right. Income tax. 5 85. You spend 5 85 on the house in the villages. You’re buying an investment property. Well, I can you rent it out.
Steve Krupp:
So, but I can’t do 10 31 and just buy a primary residence with it.
Matthew Maschler:
No, it has to be an investment property. Oh, okay. So now you rent it out. After you rent it out, you say, you know what, sweetie, I kinda like this house. Let’s move in. Mm-hmm. <affirmative>, you move in it, you’ve changed. Once you move in, you’ve changed it to
Steve Krupp:
A
Matthew Maschler:
Primary from an investment property to a primary residence. Well, what
Steve Krupp:
If I did? Yeah. But my problem is I have another primary residence, but I’m also selling,
Matthew Maschler:
You sell that. You take the $500,000 of your,
Steve Krupp:
I I think we have to sit down afterwards, figure out all the pieces of my
Matthew Maschler:
Bustles. You can only have one primary residence. Right. You sell your primary residence. You don’t pay taxes on the first 500,000. I’ve gained wherever you invested, I don’t care. You can invest it in real estate. You can invest it wherever you want. Mm-hmm. <affirmative>, you could buy a REIT that way. You don’t have to do the work or if, or you p you park it in cash until you see the right property. Right Now you sold that primary residence, you’re probably living somewhere that’s now your primary residence. You live there for two years. If you decide to rent it out, after you move to the villages, you’ve turned your primary residence into an investment property. Not good. Cuz that 500,000 you’ve, you’ve given up on that 500,000 tax advantage. Right. You may wanna sell it. Capture the 500,000, buy something very, very similar. Uhhuh <affirmative>. Right. If there’s a gain, if there’s no gain, no problem. But if there’s a gain, you sell your primary residence, you don’t turn your primary residence into a rental property. You sell your property primary residence to grab that tax benefit. Okay. You, um, but when you move the 10 31 money into the villages, you rent that out for a year, then you move in, you turn the investment property into residential. Right. And then you turn, then you
Steve Krupp:
Switch
Matthew Maschler:
Things around. Yes. So you can only do one at a time. You have to choose what’s best for you. Right. But the hack is you buy something for 300, sell for 5 85, put it in 10 31 exchange, buy the house that you really eventually wanna move into. Rent it for, for 5 85, rent it for a year. Now you’ve moved the gain. Um,
Steve Krupp:
And there are no laws with rental in terms of how much or to whom. So it could be family for an amount that you want.
Matthew Maschler:
I wouldn’t tell you not to play that game. I would tell you to actually rent it out. Well, if
Steve Krupp:
It’s a real rental, you can still, it’s like loans. You have to charge a market
Matthew Maschler:
Rate. I would tell you that your, your, your intent should always be that you intend, when you bought it, you intended it for,
Steve Krupp:
Hey, I sent my insurance company a copy of the report. I understand
Matthew Maschler:
You bought it. You intended it to be a, to be a, uh, rental. A rental. And, and look, a lot of people buy property in Florida for a rental and that they’re one day going to retire to Right. Rental.
Steve Krupp:
Well, we plan to do that with a condo. Right. We lived in it for the first nine months and then decided to turn it into a rental. Right. But it wasn’t our primary
Matthew Maschler:
Residence. Right. So, so all, so all the hack of the 10 31 is you move that money into an investment property that eventually becomes residential. Two years. Right. Grab that, grab that tax free money and then figure out somewhere else can you rent in the villages.
Steve Krupp:
Oh yeah. We actually, we See that was another advice a gentleman gave me was he said, keep your rentals close. Yes. Because you don’t want to be going all over the place. And you know, so if we like it there, then after we lived there for a little while and decide this is for us, we’ll buy some smaller houses that are, cause I found that the, the sweet spot is two three bedrooms. Right. 1500 square feet. Once it get’s bigger than that, that, you know, you don’t get price per dollar as as well performance. So we may buy some smaller ones there and rent them out. And the other demographics are huge bulging population. That’s a decade or so behind me. They’re can have affordability problems with buying homes, but they still wanna retire. Mm-hmm. <affirmative>, they can pay rent and they have a reliable source of income cuz they’re living off 401k, social security and other, you know, annuities. Things that, that you don’t have to worry about. So that’s, that’s why I’m planning to kind of go there. And I’m also waiting for a drop in the real estate market. Everyone is. Which is why it’s time to get out. <laugh>. Yeah. So I’m listing all my properties with Stacy because no one moves them as fast as, sorry,
Matthew Maschler:
I
Staci Garcia:
Gotta start moving up to Orlando. Something
Steve Krupp:
<laugh>. That’s right. I just bought the houses up there. You’re gonna have to sell those in
Matthew Maschler:
A few years. So let me talk about the villages for a minute. Cause I know you guys asked me about it. So it’s a good time to answer the question, especially when it’s being recorded. Um, the Villages is a, uh, a, a fun little kingdom. Yes. Uh, in Florida. And when I say kingdom, I mean like, you know, like the Vatican is in, in Italy, but it’s its own little fiefdom. Right. And there’s other countries like that. Stein and Monaco. Uhhuh. <affirmative>, right. Monaco is its own country, but really should be part of France. So the villages is its own little kingdom inside Florida. Uh, I think it’s, I think there’s three counties that meet. Um, so some of the villages could be in this county, that county that. Right. So so it has its own more than, it’s like a government. It’s, it’s like a super hoa but it’s really runs like a government. Well
Steve Krupp:
That’s why I say it’s like Disneyland and Century Village mashed together without the rides. Cuz you have this overwhelming management that keeps it clean and there’s no garbage and there’s rules and there’s, and, and then
Matthew Maschler:
Disney World famously has a, has its own private government as well. And that’s what was recently in the news about taking away that status. Exactly. But the, so the Villages has the, the, the developer basically runs it as its own government
Steve Krupp:
And they had no, no pooling of water or any sort of damages in that aspect from the hurricane, which was very good to know. Yeah.
Matthew Maschler:
Cause it’s a very central, um, location.
Steve Krupp:
And they control the building so they, they’re aware
Matthew Maschler:
Of it Florida and, and the buildings are up to code. You could lose, you can maybe lose some roof tiles, you replace them. Um, but they, um, they have their own mls.
Steve Krupp:
Yes. V ls that’s called,
Matthew Maschler:
They have their own mls. So as an outside agent, you cannot access the village’s internal MLS system. There are plenty of agents in the villages and surrounding areas that are members of, um, aura. Yeah. Uh, not, or a stellar mls, uhhuh <affirmative>. Um, so we can list in and we can view stellar mls. I’m part of, uh, that’s the, that’s the main one for Central Florida, Orlando to Tampa. Um,
Steve Krupp:
You can see older village homes that people have sold in mls, but the new ones are only
Matthew Maschler:
Ls it, so Yeah. Anything new from the builder is coming through the villages. Right. They won’t even pay you a referral. Right. If, if you went to the Villages and say, Hey, I’m bringing you a customer, they’re like, get in line <laugh>. They will not, they will not pay you a referral fee. They will not even say thank you. Right. Right. Um, they will not pay a referral fee, um, if you’re bringing them a buyer. Um, because every agent, everyone knows an agent then bring, bring me in from Yes. From Florida. I want, my mom wants to buy a place that I wanna come in. Then they just, they don’t wanna pay me a commission. Mm-hmm. <affirmative>. Right. So you, you can do all the resale, you can list and do resales, uh, all around the villages. Um, but you can’t actually list, uh, in the villages, uh, they’ll tell you that. They, they’ll they’ll tell you that you can’t even do that. Right. But once somebody owns the property, no one can stop them. So we’re, we’re already signature. Real estate funder is a member of Stellar mls, uh, which is, uh, we’re a member of several, uh, MLSs throughout, I think I’ve done. So
Steve Krupp:
I’ll be able to sell my properties through you when I’m Yeah,
Matthew Maschler:
Yeah, yeah. We’ll be able to list, um, that, that’s stellar MLS that controls that area of the world. Um, so I I’ve been meaning I’ve owed you that answer for a
Steve Krupp:
While. Yeah, I know. Actually, funny cuz we were in, again, a coffee shop. We like to drink a lot of coffee. Lauren, you know, loves the gluten-free bakery products up in St. Augustine. It’s a lovely little place. And we’re sitting there, a lady comes in and we’re chatting and it’s Rashana and she happened to be Jewish. And so we’re, you know, we’re talking and, and we mentioned that we were looking at, you know, the villages and she said, do you know what kind of people are there? And I was like, um, yeah, but we’re just going there because it’s summer camp. Relax. You know. But you know, people have, um, this skewed view or I see pros and cons and people complain. I think the biggest plane is from the people who pick a year round and then mm-hmm. <affirmative>. And they don’t think about how they’re gonna feel year round. We’re not gonna spend all year round there. We’re going there because we love all the clubs and all the activities. And the music is every night there’s music everywhere. Mm-hmm. <affirmative>. It’s like being on a cruise for a musician. It’s heaven. Yeah. You know, because here all the musicians are 25 years old up there. They’re all my age. And,
Matthew Maschler:
And the and the audience is your age. So they, they, they like your current
Steve Krupp:
Music. They have a lot more in common. Every time we come back here to Boca, we’re like, we’re not in sync. People go to work every Monday morning and through the week and we’re like different life. Yeah. I, that’s why we look at
Matthew Maschler:
There. I’ve suggested the villages for my mother’s several times and she, she just refuses
Steve Krupp:
To, you know, but we’re not gonna live there year round. We’re gonna travel, go, you know, we have Palm Coast, we love it there and we love the water and the whole idea. And then we’re selling St. Augustine because we actually realize that all the benefits of owning that condo in Airbnb, we still have by owning the house in Palm Coast. Uhhuh, <affirmative>, we all we need is boat. Mm-hmm. <affirmative> so great. Too bad we can 10 31 to a boat if I live on the boat. Can I, oh, okay. <laugh>, I read that if you live on the boat, you can claim it as your primary residence. For
Matthew Maschler:
What
Steve Krupp:
Purposes? Irs?
Matthew Maschler:
For the cell of
Steve Krupp:
The boat? No, for as a home. In other words,
Matthew Maschler:
Iris doesn’t care where you live.
Steve Krupp:
Right. But I’m saying that I can claim the boat as a home.
Matthew Maschler:
No, but, but, and
Steve Krupp:
Then I can rent it.
Matthew Maschler:
But for what? But no, but what would be the benefit be? Oh, you can sleep on a bench there. I just doesn’t give a shit <laugh>. But when you sell the bench, you, you gonna pay income tax, right?
Steve Krupp:
No, I’m saying if I pri if I sell a primary residence, uh, and I have some, oh, I, I see
Matthew Maschler:
What you, if you live on the boat and when you sell the boat Right, you pay taxes.
Steve Krupp:
Yeah.
Matthew Maschler:
No, I was, now most people probably wouldn’t report the taxes. That’s a different
Steve Krupp:
Story. No, I’m talking about, um, you can use it as well, whatever. It was a different thought up. But you can actually use a boat as a residence and there’s some tax event.
Matthew Maschler:
Just, okay. I mean, look, you can put a peel box on your, on your tax return too. Right? Right. The artist doesn’t care where you live. Um, I, I don’t know if the sale of a primary residence tax exclusion applies to boats
Steve Krupp:
Because I have the home in Palm Coast and I have the dock. If I put a boat on the water and it is legally a home and somehow I rent it, I’ve doubled my
Matthew Maschler:
Right. If you put, if you have a house on the water and you have a dock and you tie the boat to the dock, you did not increase the square footage of your home. <laugh>. Even if you could sleep there, <laugh>,
Steve Krupp:
Even it has a bathroom. You
Matthew Maschler:
Can, even though there’s a bathroom and you could cook and you could be on that, you could be on that boat for months. Right. You’re not including that in the square footage of the home. No,
Steve Krupp:
But it’s a separate place to rent. You wanna live in a boat,
Matthew Maschler:
You can certainly rent it a house. You can certainly rent that. You can certainly live there. Right. Jarius doesn’t care where you live.
Steve Krupp:
Just not through Ian. Right.
Matthew Maschler:
<laugh>. And, uh, you know, it’s funny, I I had a similar conversation and the person was saying irs, but they meant the non Florida state where they used to live mm-hmm. <affirmative> and, and, and they’re talking about living in Florida now. And then Florida says it’s the primary says I go, it doesn’t matter what Florida’s rules are. Yeah. The rules are you’re trying to avoid taxes from the state you used to live in. <laugh>, their rules are what matter, not Florida’s, Florida. Don’t give a shit about how many days you stay in Florida. Right. You can spend one day in Florida, you can spend 360 6 days in Florida. It doesn’t matter to the state of Florida.
Steve Krupp:
Right. It’s the one you’re leaving.
Matthew Maschler:
It matters to the state you’re leaving.
Steve Krupp:
Exactly.
Matthew Maschler:
So, you know, and, and the IRS doesn’t care what state, what the IRS would rather you live in Florida because they got
Steve Krupp:
A deduction. There may be another thing that, like you said, oh, these 10 31 customers and you know, I know they’re running out of time. Maybe people leaving California and New York have the same sort of issue. They wanna bring so many days that they’re not responsible to pay the income tax, which could be quite a lot of money.
Matthew Maschler:
Absolutely. Or they, they’re closing on the sale of their business. They gotta be a Florida resident. Before they
Steve Krupp:
Do that. My account said, I you should close after, you know, January 1st, you have a whole nother year to deal with taxes. But your, your idea’s much better. 10 31. I I would, and I didn’t know I could just park it. I thought, I thought, ah, the hassle of holding it, buy a whole new place or
Matthew Maschler:
Whatever. You don’t have to have a, uh, uh, simultaneous closing the, the 10 31 agent. We’ll hold the money. Right.
Steve Krupp:
I got six months. So now I, I got some time to think and then if I change my mind, I can always just say, yeah,
Matthew Maschler:
You can change your mind. Any, anytime you Yeah. The IRS is
Steve Krupp:
Happy to take the money,
Matthew Maschler:
Happy to do it. Right. All right. So thank you so much you for joining us. This
Steve Krupp:
Was an honor and a privilege. I love being here with you and just like, uh,
Matthew Maschler:
Yeah. Thank you. Any investors out there would like to buy a a a a 10 31 exchange. Airbnb running at a time. Yeah. Yeah. I’d like
Staci Garcia:
To close, you know, the 10, the Airbnb market is, um, it really needs a spot on the mls. Mm. You know what I mean? It’s very hard to find an investment property that is made to be an Airbnb.
Matthew Maschler:
It, it’s very hard as a realtor to find and identify the investment property. Right. Because the people who are selling the investment properties, they, they, they’re, they’re listing it as residential. They’re not listing it as income. Yeah. Uh, so yeah. I had to educate my agent. Yeah. Right.
Staci Garcia:
So when I look for it, cuz I do have the, the buyers that for it, I have to really, really, really scour through every property. Unless somebody says this would make a great Airbnb. Right. And then I still have to do my research. And
Matthew Maschler:
I don’t know if you can search like words like that on the mls. You
Staci Garcia:
Can search words, but
Matthew Maschler:
It’s still, and there’s no standard spelling of Airbnb, true Air dash a, you know,
Staci Garcia:
Well, people say this is great for investment, you know? Right, right. But still, it’s a hard, it’s a hard product to find mm-hmm. <affirmative>. And it takes a long time to find them. Unless people, I wish there was a box for it, honestly.
Matthew Maschler:
You know? What else? Um, uh, the, the commercial, um, MLS is, uh, loop LoopNet. Mm-hmm. <affirmative>, um, or CoStar, well maybe you guys should start the Airbnb. Mls. No, I’m thinking I red, I’ve
Staci Garcia:
Done a
Matthew Maschler:
List of things like Red Week for timeshare. Yeah. Yeah. But I think, um, what you should do, like if, if, if like if you had a listing that was the Airbnb. Yes. Besides listing it on the mls, you should also list it on, um, LoopNet. LoopNet. Yeah. Um, because people scanning LoopNet and
Staci Garcia:
Well, I do, um, go on the MLS and look up residential income. Mm-hmm.
Matthew Maschler:
<affirmative>,
Staci Garcia:
Right. I mean, I do that also, but
Matthew Maschler:
You’ll get more exposure. Right. On LoopNet. I know I’m looking at LoopNet all the time for deal. Sometimes you see a, a red, is that loopnet.com? loopnet.com? Yeah. And what is that for your listeners? Cause I’ve never heard. It’s, it’s the commercial mls. I see. Uh, LoopNet and CoStar. Do you pay a fee to belong to LoopNet? You um, there’s, so LoopNet and CoStar are the exact opposites. They’re owned by the same company. So LoopNet, you pay a fee to list, there’s no fee to browse. Co-Star is free to list, but you pay a fee to browse. Now are these competitors to Zillow? No, because they’re, uh, they’re commercial. The commercial. Ah, so it’s for commercial properties. So it’s commercial like, like the studio we’re in. If someone’s looking for a warehouse of studio, so this would be like Zillow for commercial. It’s, it’s it’s the com right? It’s, but it’s the commercial Zillow’s Not really the mls. It’s an aggregator. Yeah. This is the commercial mls and it’s, it’s nationwide. Um, so LoopNet, it costs money to advertise on, but it’s free to browse. CoStar is free to list, but it costs money to browse. There’s more listings on CoStar. Right. Because it’s
Staci Garcia:
Free.
Matthew Maschler:
Because it’s the person who’s, um, on it a lot just wants to browse. They, and they list, they list it on CoStar. They don’t care if it’s listed on LoopNet because they know more, uh, professionals are browsing Co-star. Right. And it’s cuz it costs money for me to list on LoopNet. Um, I’m much more likely to do the co-star thing. So I’ve, when I’ve, when I’ve had commercial, I’ve paid money to put it on LoopNet. But going forward, I’m gonna, I I’ve joined Co-Star so that way I can list as many commercial as I want. Right. And, and, but also really cause I wanna browse, I wanna browse cost those listings. Cause there’s more listings there. Right.
Steve Krupp:
And that’s for, if you’re professionally looking to buy property, you don’t mind paying that fee because you’re gonna pay the IRS taxes. You need a 10 31. You’re looking for
Matthew Maschler:
Property. I, I, I want to be able to list and browse commercial listings. Right. And, and, and, and, and more so investment properties. Right? So for someone, you know, the diner on Route one is gonna get listed on co
Steve Krupp:
See now, now, like, I asked this woman, you know, how long are you doing this? And she goes, oh, I’ve been an agent for five years. But you know, my personal valuation, I think Stacy has learned more from you in a year. A hundred. This lady has learned in five years. Seriously,
Staci Garcia:
I learned something every day.
Matthew Maschler:
Stacy’s come in with a lifetime of experience that was easily transferrable to the job. Mm-hmm. <affirmative>. Um, well,
Steve Krupp:
She’s good with
Matthew Maschler:
People and she, and she’s, and she’s good with people. But yeah, it’s, you know, if, if you do one thing for 50 years, you do 10 different things for five years, the, the person who’s been doing it for five years has more experience than the person who’s been doing it for 50. Yeah.
Steve Krupp:
Well, I’m, I’m Ational. Yeah.
Matthew Maschler:
After a couple
Staci Garcia:
Ational,
Steve Krupp:
I, I find another thing to do. I mean, I I, if I listed all the different occupations or things I’ve endeavored,
Matthew Maschler:
I have the vendors list on real estate finder.com. If you click, you can see vendors. So if you’re looking for a plumber or an exterminator or photographer. So, so the, the web developer, I use his name when I’m making compliments. When I’m not making compliments, I’ll, I won’t use his name. So the web, so, so when we were building it out, we would have to make categories. Right? The first time we added a plumber, we had to make plumbing a category. So I want Steve in the vendor’s list. And he made a category of computer repair and piano tuning. <laugh>.
Steve Krupp:
And
Matthew Maschler:
I see, I see Andy. That’s two different categories. Yes. <laugh>. I can’t put all the piano tuners and all the computer repairmen in, in there. Two different categories. Computer repair, piano tuning, and
Staci Garcia:
Now Airbnb. And now there’ll be something after this
Steve Krupp:
One. Yeah. There’s always, there’s
Matthew Maschler:
Always there’s gonna be a 10 31 agent. Yep.
Steve Krupp:
<laugh>, listen, I, I, you know that everyone tells a story about, oh, I bought a house with a napkin. I, it was a piece of loose leaf paper and a check, just like you said, which, you know, no real estate aid. No, except for Stacy in the background holding my hand. Because every time I do something in real estate, I’m Stacy, am I doing
Staci Garcia:
Like, I’m being impulsive? Should I stop? I, huh? No
Steve Krupp:
Doing anything. It’s like, where’s the other shoe? She’s like, don’t worry, it’s not gonna drop <laugh>.
Matthew Maschler:
All
Staci Garcia:
Right.
Matthew Maschler:
All right. So this will be great. So thank you for joining us on the,
Steve Krupp:
A lot of fun. Thank you for having me.
Matthew Maschler:
Thank you for joining us on the Real Estate Finder podcast. Get all of our information on real estate finder.com. And I’m Matthew ler.
Staci Garcia:
Stacey Garcia,
Steve Krupp:
Steve Krepp. Hope to see you again.
Speaker 4:
The future looks bright. And the stones pass by the sky’s dog. Blue. When it’s almost that time, light shows cameras flash when I pass living in the moment, forget about the past. They save the best for last. Matthew Mania. We about to make a splash. Life is a marathon full of sharp terms. Gotta keep pace while the hands on the pop turns hot sticks. Five star real estate. I run a show. You can tell the place electricity, energy vibrate. I’m always time. I’m late. I make dreams come true. Living my life. Hope the, for you, my got a real clear view. If you dunno the time, I’ll give you a clue.
Speaker 5:
You know what’s, you know what, you know what it is. You know what, you know what, you know what is, you know what, you know what, you know what is, you know what you know, you know what time it’s,
Speaker 4:
You know what time it’s, you know whose time its, you know what time its, you know. Yeah. Got him shook, scared. Can’t look. We’re not afraid of the big bad wolf. First comes.