A veteran and proven Real Estate Agent!

A successful collegiate and professional basketball coach. McCormick was
named National Coach of the Year and earned several Conference Coach of
the Year awards at the collegiate level.

Coach of the Year

Rick McCormick is a veteran and proven Real Estate Professional. Rick has
authored several books, for both home purchasers and home sellers. Rick is
an EXP Master Mentor, an author, and sought after speaker.

McCormick holds a Bachelor’s of Science Degree, a Master of Arts Degree,
and some work toward a Doctoral Degree. In 2017 Rick joined the National
Brokerage of EXP Realty, currently the fastest growing real estate brand in
North America.

Along the Higher Education trail McCormick has had various roles in addition to coaching, including Professor and Athletic Director. McCormick has
transferred and paralleled those skills into Real Estate in a resounding
fashion.

Rick McCormick is currently ranked in the Top 3% of Realtors in the U.S. by the National Association of Realtors and in the Top 2% of the U.S. by Zillow Premier.

In offering his various books McCormick seeks to educate and assist both the Home Buyer and the Home Seller to maximize their home and property.

Radio Show Transcript

[Speaker 1] (0:17 – 12:52)
Welcome to Oklahoma’s number one real estate broadcast, The Rick McCormick Show, live on the Artist First Radio Network. All past shows are podcasts. Find them at ArtistFirst.com.

Now from the heartland of America and the great state of Oklahoma, USA, it’s your host, Coach Mack. Good evening and welcome to The Rick McCormick Show. We’re glad you’re with us here on this lovely Wednesday evening.

You’re listening to us live, or perhaps you’re listening later in the week to the archived version. We’re coming to you here from our offices in the South Oklahoma City area, and I am Rick McCormick, your host. We’re here for the next one hour and we talk real estate and all things real estate.

We’ve got a lot of things to talk about. Jerome Powell and the Federal Reserve met last night and today with an announcement about bond yields and interest rates. While we have some news, I’ll give you a teaser.

They did not go up. They were not raised, and that’s a good thing. We’ll tell you more about the specifics of that in the segment number two when we’re joined by our mortgage expert, the owner of Security Financial Mortgage, Mr. Kendall Dexter. Once again, I am your host, Rick McCormick. We’re going to talk a little bit about the market and what’s going on here in the greater Oklahoma City area, a little bit about what’s going on nationally in the real estate business. We’re here in May in prime time real estate season.

Colleges and universities are graduating this weekend and next weekend around the country, and high schools around Memorial Day here later in the month will be out, so this becomes a great time for people to move and to relocate. Before we get to some of our numbers here and what’s going on in our local market here, always a lot of activity. I review everything that’s going on right to the letter for the last seven days.

Somebody says, boy, there’s not much going on in real estate. There’s not many houses moving. Who did you get that information from?

My goodness. Right here in our Oklahoma City area, we’ve had 700 homes close in the last seven days. That’s five business days.

Is that 140 a day, I believe? 140 closings a day is what we have here. Anyway, if you’re tuning in, if you’re a realtor, stay tuned.

If you’re a homeowner, stay tuned. If you’re looking to buy, stay tuned. A lot of good information.

If you’ve ever thought of buying, ever thought of selling, you’re an investor. We’ve got it all right here. Our text line, the Rick McCormick Realty Group text line is 405-310-7470.

That’s 405-310-7470. Drop us a text. Let me hear from you.

Give us a thumbs up if you’re listening. Ask us a question. We had a gentleman come in last week talking about some investment information.

We talked about DSCR loans. We talked about the FHA rehab loans. We can break this thing down for you.

The quality real estate people are going to come at you and do a lot more than just show up and unlock the door for you. We’re going to be able to help you. We’re going to be able to bring you value.

At that point, if you’d like to reach out, I’ve authored some books. They’re really quality real estate books. One is called Selling Secrets You Can’t Afford to Miss.

If you’re selling your home, we would go and speak different places. People would ask for information and ask for this or that. We’d send it to them.

Eventually, we just put it all together and put it in a book. We sell those books for a small fee. I can send you a digital Kindle electronic copy on your phone and iPad this evening.

You reach out with your information, 405-310-7470. When it comes to you, it’ll come from a different number, but I can send you Selling Secrets You Can’t Afford to Miss. Also, if you’re looking to buy a home, I’ve got a really quality book about some of the things we do, including home inspections and negotiation on Your Guide to Buying a Home.

It’s not a real creative name, perhaps, but nevertheless, they’re great reads if you’re interested in the real estate space, looking to buy, looking to sell. I jokingly tell you, if you’re a fiction reader, it may not top a John Grisham or a Daniel Steele novel, but certainly, if you are interested in buying or selling, it will bring a lot of value to you. That’s what we’re all about here.

There’s a lot of people with a real estate license that maybe have a business card and call themselves a realtor, but we’re coming at you from a value perspective. We’ve got on our wall in my office, our, I guess, overriding theme is that we are about relationships over transactions. We’re about people over property.

One of the largest and greatest things that people do in their lifetime is many times buy a home and raise their family in that home. I mean, it’s a great thing. It’s one of the largest transactions you make, and we want to help you and assist you with that.

Whether you’re selling that or whether we’re helping you buy it, get into a new home, but with all of that said, we’re about you, and we’re about your wants, your needs, trying to do a good job on behalf of you, first and foremost. We are about relationships over transactions, and the clients and people that I deal with become lifelong friends. We share Christmas cards and reach out to Thanksgiving and birthdays and become friends.

It’s certainly a good thing, and I am the founder and owner of the Rick McCormick Realty Group under the umbrella of EXP Realty, and also of the Coach Mac 10X Business Coaching Program. We’re going to talk in the second half of the hour about some of the real estate coaching that we do and trying to lower the failure rate in the real estate industry, which is about 90% after five years, by the way, for realtors. But if you’re a homebuyer or whatever, that may or may not be important to you.

Let us hear from you. What’s the weather been like where you’re at? It’s been so much rain here in Oklahoma.

We had 12.5 inches of rain in three days last week, a little rainy last night and earlier this morning. Right now, we’re 69 degrees and sunny right here in South Oklahoma City. I hope it’s as nice where you’re at.

Like I said, it’s been a little damp, but it’s supposed to be really gorgeous these next few days. It’s baseball and softball weather. The University of Oklahoma here locally has winded down their baseball season.

The OU Women’s Softball has won four national championships in a row and became a real powerhouse. This area, Oklahoma City hosts the National Collegiate Girls Softball World Series. We always like to see good weather here as we head into May.

Certainly, that’s what we have today right now. It’s absolutely gorgeous as we look out the studio windows here. I hope it’s equally as nice where you’re at.

Like I said, we’re going to have some beautiful lawns and beautiful grass. We have had a ton of rain here in the Oklahoma City area. I mentioned my books there, Selling Secrets You Can’t Afford to Miss and Your Guide to Purchasing a Home.

Reach out at 405-310-7470. Let me hear from you. I can get you a free digital and Kindle copy of that.

All right, let’s get into a little bit about what goes on in our market here. I feel premier experts on what is going on in this market here in the Oklahoma City area. As I mentioned, 2024 was a challenging year in real estate.

It was challenging because the interest rates were so doggone high. They’ve dropped some. There was a time last year that 7.5, 7.75, that was your rate. That’s the best there was out there. We’re about a point below that right now. We can hit you a little extra bill in a minute.

It depends a little bit on your credit profile and the type of loan. We’re looking at a 6.25 in many cases right now, maybe a 5.99 with a federal loan. They are better than they were last year.

Still not quite where everyone wants them to be. That impacts both buyers and sellers. Somebody might ask, how does that impact the seller?

Well, if you own a home and you sell your home, what’s going to happen? You become a buyer. Many times in this market right here, but certainly somewhere, you’re going to become a buyer.

Let’s take a look at this thing. Last seven days, and that’s five business days. We’re talking Monday, Tuesday, Wednesday this week and Thursday, Friday of last week.

In the last seven days, we have had 700 on the nose sales. Let’s see, 140. I was checking my math there.

That’s 140 closings a day. Now, check this out. We’ve had 805 new listings come on the market, 805.

We have had 136 that were taken off the market, came back on the market. That’s 941, knocking on 1,000 new listings. Rick, does that seem right?

We’ve got almost 1,000 new, 700 sold, but guess what? We’ve also had go pending. We have had 726 go pending.

Between our pendings and our solds, we’re over 1,400. So, there is a lot of movement in our market here. Now, I see Dexter getting headphones over there in the studio next door.

I’m going to bring him in for part of this conversation. Expired listings. I don’t know if it’s because the month ended.

At the end of a month, since we were here last, but I’ve got 47 withdrawn listings. 229 expired. So, 236, 270, almost 300 withdrawn and expired listings.

That’s a lot, guys. We’re going to talk about our inventory in a second and get to that, but the inventory is over. That’s about 5% of our total inventory.

So, we’re still a bit in a buyer’s market. There’s no question about it. Let’s go ahead.

We’ll come back to the inventory and what that means in a moment. Let’s go ahead and bring on the owner of Security Financial Mortgage, Mr. Kendall Dexter. Kendall, great to have you with us once again.

[Speaker 2] (13:28 – 14:31)
So, the Feds did not move them. I thought they were going to go quarter to the good, honestly. With the pressure from the Trump administration, I thought they would go quarter to the good.

I was wrong. They’re citing economic uncertainty and fear of recession for a reason for not doing it, and they basically said the Trump administration’s pressures had no bearing on their decision. So, they’re going out of their way to say that the Trump administration has nothing to do with this, and they’re not moving them because they don’t think that it’s warranted, and they’re concerned about the economic uncertainty with tariffs and certain things going on.

So, to me, not to get too political about it, but there’s a little bit of a battle going on between Powell and the Feds and the Trump administration.

[Speaker 2] (16:02 – 16:58)

Yeah, it’s a good question. To me, it would spur the economy if we did do that. People are already getting antsy wanting to move on from their house where they’ve got a 3% rate.

Some of people are willing to absorb the higher rate to make the move and it can really be a positive move. But I don’t know why they’re not doing it. It makes no sense.

It’s been a long run. We’ve had about a long run with these rates as we did with the low rates at this point. We were expecting that they would start coming down in 2024.

And they’ve made no movement. It’s been stagnant this entire time. So I don’t understand the strategy at all.

[Speaker 1] (16:59 – 18:43)
And let’s remind our listeners, as we’ve talked about on here many, many times, these were, you know, there was a time that we came on here and you could hit someone with a literally a 2.75, 2.95 interest rate. And the Federal Reserve has raised them intentionally. They have more than doubled them intentionally.

And that is said to be a hedge against inflation. The encouraged saving and the slow borrowing and so on. But, you know, so where we’re at is, it’s not, it hasn’t just allowed nature to take its course.

It was done intentionally, and what I would call artificially, to raise them. And they’re never returning to the, you know, 2.95s and 3%s once again, nor probably should they, because I don’t think that’s a long-term sustainable rate. But, you know, the housing industry, and we can give you all kinds of statistics and facts, but it has a great deal to do with the overall economy.

I don’t know that the housing industry is the number one indicator of the economy, but it’s in the top three or four or five things, certainly, no matter who you ask and who you talk to. And so couldn’t that be, you know, potentially, I mean, give me a little, you’re a financial guy, and you’ve been in the mortgage business, gosh, you’re knocking on 30, you know, you’ve been in 28 years or something. I mean, some are ridiculous.

[Speaker 2] (18:44 – 18:49)
1990 summer coach, yeah, 28 years. 28 years, you must have started when you’re 12.

[Speaker 1] (18:52 – 20:27)
Otherwise, I gotta assume that you’re old. And so the, of course, we don’t talk about me in relation to that. But, well, why would that say that we not, if the housing industry is such a huge indicator of the economy, why are we not looking to get the, you know, jumpstart that thing a little bit, give it a little kick in the pants.

And especially now, as I mentioned, prior to you coming on, colleges around the country are getting out. Everybody graduates this weekend or next weekend. Oklahoma, Oklahoma State, I mean, virtually 95, unless you’re on the quarter system or something, every school in the country.

And by the end of the month, around Memorial Day weekend, all the high schools and public schools around the country are out. This is when people make their moves, when they relocate. Or you could really spur the economy and spur maybe some a jumpstart, a kick in the pants to new home building, new home construction, the whole mortgage industry.

I mean, give me some thoughts on this. I mean, obviously, they’re saying, hey, the stock market, the economy is too volatile. The stock market’s this, it’s that.

But yet, sitting here and just standing back and kind of watching being a bystander doesn’t seem to be impacting it a great deal as well. Wouldn’t a little assist to the housing industry really help the overall economy?

[Speaker 2] (20:28 – 21:25)
Oh, yes. The housing industry is a huge driver of the economy. Like you said, it may not be number one, but it’s a huge driver.

It always is. And we’re on the same page, Coach. I mean, give us a nice five and a half to work with where the Fed rate goes down to, say, four and a quarter, and there’s a margin there for the banks and everybody’s pretty happy.

The wages are not catching up to the cost of housing and the cost of rates. And one thing they do have in their power is to give a little relief on the rate part. And I definitely am in favor of this.

Of course, I’m in the mortgage industry. But it seems to me like if you want to drive the economy in a positive way, this is an easy way to do it. And it is something you can control.

[Speaker 1] (21:28 – 24:17)
Well, I would think so, because like I said, it was control artificially moving it upward. Most certainly was. And so, again, let’s see.

Okay. Well, I mean, we’ll come back to that a bit later. I want to go ahead and jump back.

With all that said, look at the activity. How about 140 closings a day? How about 700?

That’s a high number for our market, any time of the year. We haven’t seen that in a while, 140 closings a day, 700 in a week. But also, another interesting thing to me, and I’m looking from the real estate agent and brokers perspective, 47 withdrawn properties and 229 expired.

That’s 275 to 300. We’re almost 300 expired listings. So we’re still in a buyer’s market.

And there’s some people that are still not aligning with the right kind of realty people. These should sell. You should be able to sell these.

And I’m looking on here, and some of them are 95,000, 144,000. It’s not that everything that didn’t sell was a million dollar home. Well, those just don’t sell in our market.

No, no. Matter of fact, I closed, as you know, on a $1.3 million property last Wednesday, a week ago today. I’m looking at the ones that did not, 120,000, 139,000, 184,000, 108,000, 169.

I mean, on and on, 165. You get the idea. There’s plenty of moderately priced homes that were on the market that were withdrawn, that did not sell.

And so while we are in a buyer’s market, that’s almost 5% of our inventory. That’s a lot of withdrawals and expires, a lot. What are your thoughts on that?

You see this thing because as a mortgage broker, you’re here, your lifeblood is real estate people. It’s buyers. It’s the repeat business.

It’s refis. But it’s also realtors bringing you new deals. So what do you see in this deal?

And as I look on here, 100,000, 116,000, 223,000. That’s a real high number of expires. Your thoughts?

[Speaker 2] (24:17 – 24:56)
It is. And a lot of people are craving property under 200,000 because that’s the affordable price point. So there’s something going on with the agents and the marketing, I would guess.

Because you should be able to move just about anything. I mean, there’s some junkers out there and you can’t get government financing on them and you can’t do certain things. So that’s going to be a portion of that market.

But the turnkey ready properties available under 200,000 should move. And I would say that’s due to poor representation, would be my best guess.

[Speaker 1] (24:58 – 26:46)
Well, I mean, that’s kind of my thought. I mean, we got a property under contract today here in Norman. It’s listed for, I say here in Norman, we’re south.

But in Norman, 239,000 went under contract today. So I mean, those properties, if they’re less, they’re price wrong or just horribly junky, they should sell. They should sell.

I mean, hands down. Let’s go to inventory here. Let’s see if it’s changed here since we went on the air.

I looked at earlier today, we came down a little bit, but 7,493 right at 7,500 properties. That’s still a high inventory for our market, Kendall. We used to say 6,000 was normal.

Prior to COVID and, you know, we dropped way down and then we climbed back up and over six and we had 6,500 and 7,000. Now we’re at 7,500. That’s still a pretty high listing, which what that means is a buyer can go out there and get a pretty doggone good deal right now.

And so as we’ve said many times before, focus on, you know, calling me and getting with Rick and Corn Realty Group and quality representation and somebody to help you in this venture and negotiate for you. But listen, go get you a good deal and don’t focus too much on the interest rate because if it improves and I mean, go get the good deal right now. If it improves, we can refinance and we can improve that interest rate.

[Speaker 2] (26:46 – 27:45)
Don’t wait until the house gets competitive and you have to pay $20,000 more for the house. Well, exactly. I was talking to a guy.

I talk about this all the time. I was talking to a guy today looking to buy a house. This gentleman works for the Oklahoma City Thunder, which is kind of a neat feature, but he’s looking to buy a house.

He’s like, maybe I should wait. You know, the rates are a little higher than I like. I talk about this every day, sir.

Like we need to pick up the property now and refi later. Like this, I’m firm on this. Like if you, a huge driver of appreciation of property and cost of property will be demand and you will have much higher demand in a lower rate market.

You don’t want to be looking to buy the house when everybody else is looking to buy the house. You want to buy the house now and then you’re sitting pretty with your ownership and you’re refinancing your notes. That’s what we’re doing.

[Speaker 1] (27:47 – 28:21)
Well, absolutely. We’ve talked about the dollars and cents of that. We may get you to look at that when we come back.

We’ll take home, let’s say that we bought it right now at this interest rate and interest rates go down and let you do the math on that. I mean, what you’ll find if this happens in the next 12 to 18 months or whatever, the cost that you would pay in the higher interest is very small and almost minuscule in relation to paying 15 or $20,000 more for the house because everything gets competitive.

[Speaker 2] (28:26 – 28:40)
That’s exactly right. Let’s do that after the break. I’m going to have the numbers ready.

The truth of the matter is when we look at the average appreciation versus the difference in interest, you’re going to say, let’s buy the house right now. Absolutely.

[Speaker 1] (28:41 – 29:08)
And speaking of the break, we’ve got to kick it back to the studios and for a commercial break, you’re listening to the Rick McCormick show. I’m your host, Rick McCormick. We’re joined here by mortgage expert, Kendall Dexter.

We’re glad you’re with us. Our text line this evening is 405-310-7470. Let us hear from you.

Now back to the studios, but stay tuned because we will be back.

[Speaker 2] (29:09 – 31:07)
Today in America, many Christians feel frustrated as they watch their faith being used to further a worldly political agenda. It is if our religion had been taken hostage, forcibly wedded to a particular political ideology or economic system, or else stripped down to a couple of hot button issues. Ironically, in our efforts to take back America, we have ourselves been taken captive by the prevailing culture and politics of imperialism, greed, racism, and xenophobia that surrounds us.

And so the struggle for the soul of the nation has also become a struggle for the soul of the church. How can we regain a political voice that is neither power hungry, nor passive, neither conservative, nor liberal, but simply Christ-like in his concern for justice and the poor. Evangelical pastor S.J. Munson explores these issues in his hard-hitting book, Christ Held Hostage, The Hijacking of American Christianity. What this book has to say will both surprise and challenge you. Available from Amazon and paperback or Kindle. Hey, where are you headed to in such a hurry?

Gotta run. Got a date with a tiger. Oh, I see.

And where’d you meet this one? At Big Cat Rescue. Huh?

Big Cat Rescue. You know, the Big Cat Sanctuary in Tampa. You mean a real tiger?

What else would I mean? Big Cat Rescue is home to more than a hundred big cats. Lions, tigers, leopards, bobcats, many of whom were rescued and brought to Big Cat Rescue to have a better life in a more natural habitat.

And you met a tiger? You could say that. The guided tours at Big Cat Rescue allow you to get up close and personal with the big cats within just a few feet of their natural habitats.

It’s great for kids, too, because you learn the story of each cat and the neat facts about their species. Hey, that actually sounds pretty cool. How’d you find out about it?

I’d heard about the work they’d done to save all these big cats, so I looked them up online at bigcatrescue.org.

[Speaker 1] (31:07 – 33:02)
Come out and meet the big cats at Big Cat Rescue. To learn more about Big Cat Rescue and to check for tour times, visit bigcatrescue.org. That’s bigcatrescue.org.

Thanks for joining us on the Rick McCormick Show on the Artist First Radio Network. All past shows are podcasts. Pick them up at artistfirst.com.

Back to your host, Coach Mack. Good evening and welcome back to the Rick McCormick Show. Glad you’re with us for the second half of the hour.

I had a great first half and appreciate you staying with us. I’m your host, Rick McCormick, joined by mortgage expert, Kendall Dexter, who’s with us just about every show here. Became a regular on here.

This will have to be like those news programs like Sean Hannity or something. I’ll just disappear for a couple of weeks and take a vacation and let Kendall take over. It can be the, what is it, Jason Chavitz of the Sean Hannity Show or whatever.

Anyway, we’re glad you’re with us. Our text line, once again, is 405-310-7470. I mentioned during the show the books that I’ve authored, Selling Secrets You Can’t Afford to Miss and Your Guide to Purchasing a Home.

Love to get you a free digital, Kendall, copy of that. You can read on your iPad or phone. We’re talking about the Federal Reserve meeting today.

They did not move interest rates, didn’t take them up, didn’t take them down. We were talking about the concept of … Kendall, you’re talking about a conversation with somebody that we know about should he buy right now, should he wait?

Talk a little bit, give us some numbers. Would you work up a 300,000 house, a 400? What analogy did you use?

[Speaker 2] (33:02 – 35:28)
Yeah, let’s look at a 300 and let’s say right now you’re getting 6.625 on a conventional loan. And you guys, everybody can work these numbers at security.financial. For the PMI, that’s the tricky part, but put in a 0.3 factor. That’s the only thing that people can’t do for themselves.

If you have really good credit, a 0.25 factor with 5% down would be a good number. Estimating taxes and insurance around these parts, 2350 on a 300,000, 5% down at 6.625. Let’s say that rate goes to four and a half. That would be optimistic and very welcome.

1978, so we’re talking $370 a month for 12 months in a year. $370 for 12 is $4,400 and that house, on average, I would say, and coach, I’ll ask you to verify this fact, about 4% on a normal year, 3% to 4% appreciation, maybe. Let’s say it was 3%.

So $309,000, nine grand, right, off the $300,000 purchase. Well, I paid from the difference between four and a half and 6.625, I paid $4,400 for a year of potentially tax-deductible interest. But the nine grand I gained is not subject to any, it could be subject to tax if you sell in a certain period of time, whatever, but you might get some benefits off of that 4,400.

Maybe that nets out to be 3,500, but that nine grand’s legit money in your pocket. The house is worth more. So even if it was a 2% appreciation, you’re almost doubling the interest paid.

So it’s a no-brainer. As long as you can afford it month to month, you pick up the real estate when it’s cheaper.

[Speaker 1] (35:30 – 37:46)
So let me surmise that in a minute’s word. So he talked about the difference between interest rates now, 6.625, and say they’re four and a half. We don’t know if they’re going to drop four and a half, but that’s the best case scenario.

So we’re talking, he’s talking $300 a month, which takes you to $4,400 in a year. If they go down, interest rates go down. And you’ve paid $4,400 more now than you would a year from now in this four and a half.

But the house appreciates and goes up in value in the appreciation more than compensates. $300,000 house, if it only goes up 2% a year at $6,000 a year, that’s more. I mean, even our producer back in the studio, Scott, I mean, he’s mathematically challenged and he can grab this one, $4,400 versus 6,000 appreciation.

Now, one other factor, if his interest rates go to four and a half, we’re going to have a little bit of a surge, maybe somewhere between a surge and a tsunami of buyers. And at $300 house, make it a little competition, and it might become $310, $312, $315, producer Scott. So now, not only did your appreciation more than compensate for the more you paid interest, and by the way, that interest is tax deductible.

So your $4,000 of taxes and a 30% tax bracket, I mean, that’s $1,200 straight back to your pocket. So we got a compensation there, even without that. But if you give more competition, it’s in our market.

Okay. I got a smart guy down in Miami that says that this might not happen. I said, I don’t know what’s going to happen down there, but I’m telling you here, you get people out there and you get five offers on a house, it’s going to drive the price up.

[Speaker 2] (37:46 – 37:47)
It just simply is.

[Speaker 1] (37:48 – 39:22)
And so that are reasons why that you may want to think about, go ahead and go out there now. While this inventory, again, back before the break, I said the inventory is just a couple of properties under 7,500. 7,500 properties available for sale in our MLS right now.

Okay. That is for us. Like I said, 6,000 used to be kind of normal.

7,500 is a lot. So we’re still in a bit of a buyer’s market. You can go and get that good deal, certainly with the right representation and the right real estate agent representing you, you can get a good deal.

And people understand that. Remember, we talked about almost 300 expired and withdrawals. So if those buyers got something close, if their house was listed for 300 and they got offered for 290, you don’t think a lot of those people would have taken it.

Probably the majority of those people. Common sense and logic, Kendall, would tell you that they probably would. So now again, because rates go to four and a half, we’ll get a lot of buyers.

That house gets four or five offers instead of being that 300 house being 290. It may be 310. It may go up, sit down.

So Kendall, does that all make sense as you’re listening to me there on this?

[Speaker 2] (39:22 – 40:11)
Yes, that’s the math we’re talking about. Yeah, that’s the math we’re talking about. Buy the house now, enjoy your appreciation, and don’t be standing in line like in 2021 when everybody’s buying and nobody’s going to sell to you.

If you’ve got a VA loan, for instance, we went through this and if you go back to our 2021 shows, you couldn’t get an offer accepted on a VA loan because they had conventional offers and they had cash offers and there were appraisal gaps guaranteeing that if it doesn’t appraise for this, I’m still going to pay for it. That sort of thing probably won’t happen again, but it’ll be similar. We’re going to go back in that direction and you’ll be sitting pretty with the deed to your property and all we do is refinance it.

[Speaker 1] (40:14 – 41:18)
Absolutely. Absolutely. So again, if you don’t understand, give us a call.

Our numbers are on the page there. We’ll break this down, but go now. Do you want to buy an automobile during COVID when they’ve shut down the factories and a truck’s coming on Friday, it’s going to roll three off, but two of them are sold?

It’s the first time in people’s lives they were paying sticker price for automobiles and sticker price plus $10,000 or $15,000 in many cases. Do you want to do that or do you want to go where the lot is filled with cars and there’s pressure on them to move some of that metal and to move some cars? Well, you’re going to get the better situation, the better deal when that lot is full.

[Speaker 2] (41:18 – 41:22)
That’s kind of where we’re at now in a real estate perspective in our market.

[Speaker 1] (41:24 – 44:44)
I can’t tell you about what is going on necessarily in Chicago or in Baltimore or Atlanta, but I feel like we are absolute experts in this market. So go and get it. All right.

I’m going to shift gears a little bit. I’m going to spend their last segment here talking a little bit about our real estate market and real estate agents. Of course, as you know, I have been speaking and coaching for some time, but we’ve recently launched the Coach Mac 10X business coaching program where we’re offering coaching in the real estate space.

If somebody said, okay, why are you doing that? Well, I want to help lower the failure rate among real estate agents and do so one agent at a time. And well, what is that failure rate?

So I’m going to give a few numbers and I’m going to let you talk a little bit about some of this. If everybody that gets licensed right now in May of 2025, and we go five years forward to May of 2030, 90% of those people are no longer active and are gone. 90%.

10% make it past the five-year mark. Now, break it down further. Of those 10% that remain, how many of them are making a big-time income, big-time salary?

You know, I don’t know what you can say. Let’s say in our market here, $100,000 a year. That’s well above the household income in the state of Oklahoma.

The average individual income, I think, is $38,000. I think the average household income is like $66,000. So we make $100,000 in Oklahoma.

So how many of that remaining 10% are doing that or just doing two and three and four transactions a year? Well, only about 1% of that 10% are out really doing the deal. So some of those, I think, are hungry for success and hungry to make it.

So that’s where we’re trying to plug in the gaps in that. You’ve been doing this 28 years now and dealing with, gosh, literally hundreds, maybe even thousands of realtors. So what do you see where some of the you know, one of the things that we’re going to have a challenge coming up about the top seven things that new realtors miss or where new realtors fail.

What are some of the things that you have seen throughout your years?

[Speaker 2] (44:46 – 46:02)
Okay, so number one, we did not prep this off the air. So we’re going off the cuff here. Number one, I mean, realtors need education on lending.

They need to be able to fly off the cuff on what people can and cannot do when they’re buying a property as opposed to having to 100% lean. Although you want to lean on your lender for the specifics because you can’t learn it all, there’s so much to it. But you need to have some sort of basis, which you have gained as we have worked together over the years, a tremendous knowledge of what it takes, what qualifies, what doesn’t, what it takes to get a loan and all those things.

I think the number one thing, coach, that realtors would want is how do I drive my volume? You know what I mean? Where do I get the, it’s all about getting the business.

It’s a relationship business. Once you have the relationships, you start to get the business. How do I get the relationships?

What’s the best way to go about that? If I was a flailing realtor, that would be my question. Where does the business come from?

Okay. How am I going to fill up my pipeline, coach?

[Speaker 1] (46:03 – 46:25)
Right. Well, there’s numerous lead gen opportunities through social media. Open houses is one way.

Social media platforms is another way. You can do it organic. You can do it with advertising, with boosts and whatever.

I mean, Google pay-per-click is another way.

[Speaker 2] (46:25 – 46:28)
Of course, you have to have a website to have the Google pay-per-click.

[Speaker 1] (46:30 – 47:05)
Direct mail is another one. One thing that, things kind of come full circle. I’m not a big mail person.

I don’t rush out to the mailbox and look forward to getting mail every day. I mean, nor do I, but I’m going to tell you something. Anymore, there’s no substitute for handwritten note cards.

How often do you get a handwritten card from somebody, Kendall? It says, Hey, I saw you on a Monday. It was great to see you.

Just want to drop your card and tell you how much I value your friendship. You’re a great guy, you know, whatever. How often do you get a handwritten card?

[Speaker 2] (47:06 – 47:06)
Never.

[Speaker 1] (47:08 – 47:08)
Never.

[Speaker 2] (47:09 – 47:09)
Never.

[Speaker 1] (47:09 – 47:24)
Imagine if you sat down, I tell agents, okay, are you hungry? Get these little flip note cards, work on your penmanship where people can read your writing. That’s another thing.

We’ve got a younger generation that can’t write or you can read it.

[Speaker 2] (47:25 – 47:34)
This scribble stuff has became real cool. You can’t use AI to correct your handwritten notes. Yeah, exactly.

[Speaker 1] (47:34 – 50:30)
But imagine if you would take the time and write 10 handwritten notes a day. You can do one and put it in an envelope and send it in a maximum of five minutes. So 10, it take you 50 minutes.

I mean, maybe one day you get busy, maybe only do eight. What if you got 40 to 50 handwritten note cards a week going out? That’s 160 to 200 in a month.

There’s all kinds of Legion ways. Now, the other thing, Kendall, what is it that they do want to know that? Well, what’s more important, I think, well, equally important is the strategies.

What do you do with those leads when you get them? I mean, have you studied scripts? Have you studied all the objections that can come up?

I mean, do you know what the statistics say that people that are in sales, is 80% of them have never read a sales book. Some of them don’t ask for a sale. I mean, we’re consultants and we’re educators, real estate, but I mean, you still need to be prepared.

People don’t walk in, look at a $400,000 home and just say, I’ll take it. They’re going to always work in their mind. Well, what about this?

And what about that? You got to help them work through that. You got to have some strategies and some techniques.

And you, I mean, so along with filling their pipeline and leads, you got to know what to do with them and how to do and what to do once you get them. And how do you help people? How do you move them?

You’re involved right now, I know personally, in buying perhaps another, in a new home. And there’s some things that cross your mind. Sometimes when you’re sitting there at night after everything is shut down and we’re watching the NBA games, there’s probably some things rolling through your mind.

Well, what about this? And what about that? In your case, I won’t call them fears, but many people that don’t do this all the time have fear.

And it’s your job as a real estate agent to help and assist and educate and help to ease and eliminate those fears. In other words, just getting the lead and getting the people, that’s great, but do a good job. And are you going to be prepared to really bring them value once you don’t have those leads?

Now, you mentioned too, let’s talk about this. I mean, I’ve got my own idea. And we did not, as you said, we did not go over this and script this and rehearse this prior to going on the air.

What percentage of realtors do you think really have a good grasp and a good understanding of the loan finance process?

[Speaker 2] (50:33 – 51:30)
One percent. You know what I mean? Something like that.

One, two percent. Approximately the same percentage that is successful. And what you find out there is the new guns, the young breed of realtor is more motivated and they’re out there doing it.

The old breed has the book of business and they’re going to be more successful. And the young ones have to find that book of business. Because honestly, what you said about the cards, that is everything.

Every five years or so, people are going to move. You need to get that recurring business. After you do five years, your business should double.

But I think there’s a very low percentage that really understand lending. Even my successful agents I deal with, a lot of them, they just defer it straight to me. They have no idea.

[Speaker 1] (51:33 – 53:42)
And I’ve heard people, I’ve heard a very successful real estate coach say, I don’t know that stuff. I don’t know anything about it. And I was kind of shocked.

I want to say this guy’s making billions of dollars a year as a real estate coach. And it’s like, you should. You should know that.

Because if you know it, you can help your clients. That thing that’s on the wall here, we’re about relationships over transactions. That’s number one.

Number two is we want to bring value. One A right under that, why do you use Rick McCormick and the Rick McCormick Realty Group? Because we’re here to help you.

We’re going to bring you value. One of the ways that you bring value, Kendall, is by knowing. We had a young couple that we closed last Wednesday, the last day of the month.

And you’re familiar with them. They had excellent job, excellent income, excellent credit scores, very little money. And we created a situation where we went out and got a USDA Rural Development property, zero down.

Got the people, the builder, to accept $500 in earnest money. I got them $10,000 in closing costs negotiated in, along with a refrigerator, along with full gutters and downspouts. So they basically bought a house for $500.

They had to pay for an appraisal and home inspections. And so let’s take it up. They spent a total of about $1,500 and bought a $225,000 brand new home.

Now, had I not understood about a USDA, you listen to the people. Well, I’ve got a large automobile payment. I’ve got a lot of debt.

Well, then an FHA loan, who has a 57%, 56-9 debt to income ratio. Knowing those things is the difference in helping people do a deal and not do a deal. And it also is a key component in bringing value.

We’ve got about one minute left, but I want your response to that.

[Speaker 2] (53:43 – 54:19)
Yeah, 100%. Now, you can always just refer them over to a really good lender and they can help you with that. But you can do it on the fly.

Let me educate you as a realtor. You will become a good, knowledgeable realtor in regards to lending, and you can do it on the fly. And then we’ll tighten it up whenever we do the prequalification.

But realtors need this. They need to know some… Like you always said, 80% of the business is how are you going to pay for it?

[Speaker 1] (54:22 – 56:14)
Absolutely. I’ve spoke many times and said… And of course, my dear and lovely friend and partner, Kathy, is great at showing homes.

But I told her way back when we started together over seven years ago that it doesn’t matter how pretty the backsplash in the kitchen is if you can’t get financed and can’t purchase and buy the home. And she looked at me in shock and in a rhythm, but she pretty quickly understood that. And that is the truth.

And that’s the way to help your people. As a realtor, the separation point between you and others is that you’re going to work hard, you’re going to be honest, but you’re going to bring value to your people. One of the ways you bring value is by knowing the financial component.

Well, Kendall, it’s great to have you in here as a mortgage expert and kind of share some of this. And I’m going to talk more about the Coach Mac 10X Business Coaching Program out there to help realtors. And we’re doing some great things.

We’re excited about the future of that. And we want to thank you for listening and being with us on this Wednesday evening. We’ll be back on the 21st, two weeks from tonight at 6pm Central Standard Time on the Rick McCormick Show where we talk real estate and all things real estate.

Thank you for being with us. Until next time, stay safe and may God bless.