All Forum Posts by: Ben Fernandez

Great points! These are all applicable scenarios we are currently dealing with. Interest rates are a catalyst. However, the overwhelming issue is still new inventory. 

The buyer should be submitting the offer to you. You should be just reviewing and confirming you agree to the terms and conditions. Is the buyer asking you for the agreement? 

If so, leverage the attorney or title company who will conduct the closing. Hopefully someone can get you the state version at least.

Use price-to-rent ratios to determine the ideal zip codes for you. The price sounds good. It just depends on the going rents in those areas.

Congratulations Tia! I'm happy to hear about your success and new endeavors! You're going to be a rockstar!

I'd recommend you spread the request across your buyer and seller - trying to get them to budge ~$5k each. Then you just take your $3k and feel lucky you made it out unscathed.

Don't forget closing costs. DM me if you need tools. You can't mess up on your numbers like this.

@Nate Williams Even if it's from his inbound calls, he should determine a rate of return. Everything boils down to the numbers. Those calls turn into appointments, and appointments turn into deals.

Using his info, he can then derive what is performing best vs the worst.

Hopefully this is helpful.

If you are a homebuyer, what are your plans for 2025?

As of last year, we were all ready for the potential "5-6 rate cuts" beginning this year. Now the rhetoric has drastically changed.

As of now, we are expecting 1-2 rate cuts max. Some are already saying there may not be any cuts this year.

Frankly, we can get to low 6's and maybe even 6 or below, if the 10 yr treasury continues to dip. So technically, rate cuts aren't entirely necessary to achieve getting below 6.5%. Afterall, we been cutting since November '24 and those cuts haven't made it to the consumer.

Based upon the last 20 years, economically, we need rates to remain higher for longer. It builds strength in our nation. When debt is very cheap, as its been the last 20 years - due to the 2008 recession and bail outs, followed by the heavy foreclosures due to predatory lending, and then COVID, rates have been historically low for a LONG time.

When the cost of borrowing is very cheap, the nation becomes more and more debt heavy. When the cost of borrowing is high, the nation is forced to buckle down, work hard, focus on growth in order to earn more, and as a byproduct we become stronger. Yes, all from the cost of borrowing, it levers the ability to grow or become more suspect to potential failure.

With many expecting home builders to be taking off at some point this year, it appears that may not happen. Or it will happen much later than an ideal time. Ideally, they'd be hitting the ground running now (3/10/2025).

I will recommend that buyers check with local lenders to verify the local going rates. Because to my surprise, I was not aware that the states have their own bonds and accessible lending. So, currently in PA, one of my brokers advises that high 5's and low 6's are available today even though the national rate is ~6.85% (at best). Therefore, I recommend everyone still verify in your own states what lenders can offer you.

I know most people will derive their opinion off the national news however. But,  still worth mentioning...

So, as a buyer, what is your plan as well as your why behind your plan for 2025?  I'm curious.

Ben Fernandez | Licensed PA Realtor 

Beside driving for dollars, no.

You need to identify the lead types where you're seeing success. You're too high-level currently. Those are sources. But they aren't lead types.

Once, you identify where you're achieving success, you can double down. But, you need to rank the success rates of your lead types so your campaigns are efficient, as well as effective.

You all can amend or apply for a new FEIN being that your son would be going from a single member LLC to a multi member LLC. I think the new FEIN will be needed. State docs need amended as well. You'd also update or create an operating agreement to specify the ownership percentages and roles of the LLC.

Another process would be to leave his LLC as is, create a new LLC for yourself, and then create a joint venture LLC where his LLC and your LLC are the members. You would also establish an operating agreement for this JV LLC to indicate the roles, responsibilities and ownership percentages.

You want all expectations spelled out in your independent contractor agreement.

A big mistake, would be to leave way too much "grey area" where terms, conditions and expectations are not clarified and documented.

Don't expect the contractors scope of work to outline all of the if-thens that can arise during the course of your project.

From deadlines, work schedule (days and hours), license, insurance, compensation, deadlines, deadline penalties, early completion incentives, who's allowed on the job site, reimbursement for out-of-pocket expenses by the contractor, change orders, waiver of lien, death, termination, arbitration, etc.

The industry standard, would be that the contractor performs in accordance to what your scope of work and supporting documentation, like the independent contractor agreement, specifies. 

Whether they agree to work a normal Mon-Fri schedule or to work weekends is up to you all. Understand some scopes of work (of booked contract work by the contractor) could be a few hours and some may be many months. 

So, within all this potential variance, what binds the expectations is all spelled out in the terms and conditions within the agreements. Be thorough. Its business and you need to protect your investment. Meaning if all goes great, so be it. But if you need to pivot, you need to be able to do so.