Welcome to our one-day-late Valentine’s newsletter!

You know what I love more than anything (don’t tell my wife): closing deals. I call myself a deal-junkie. Every Valentine’s day I romanticize the thought of closing that one deal that’s been keeping me up at night. I make a reservation in my mind and think about what it would be like to sit across the table from that deal, signing on the dotted line by candlelight. 

Valentine’s Day, for me, is about taking care of those I love. My wife, my two daughters… my beloved clients and the precious little commission checks we’ll make someday.

So if you didn’t celebrate Valentine's day with anyone… at least you have a job that you can love, because if you’re doing this business right, you’ll be dreaming your clients’ dreams day and night, and helping them find that perfect (property) match.

– James

Is there love before first sight?

Can you fall in love with a house without seeing it? Apparently yes. 

Check out the results of survey of 1,000 millennials by Real Estate Witch:

• 90% of them said they’d buy a place sight unseen just to get an edge in this fight-to-the-death market (up 10% from 2021)

• 46% of participants would be willing to max out their budget for the right property

• 82% of buyers are willing to purchase a fixer-upper needing major repairs. 

However, this might be putting millennial buyers in a tight financial spot. It’s no wonder that 25% of millennials now regret their high mortgage. 

Our take

The housing market can be especially tough for millennials. They have no equity, and they’re bidding against buyers who have been in the market for 20 or 30 years. But what’s great about this generation: they’re willing to do whatever it takes to get their hands on something of their own. As a broker, you have the opportunity to educate your millennial clients and help them understand how to win (and how to not become “house poor”) in this competitive market.

Celebrating that special bond… between MLSs

The two biggest MLSs in the country have admitted they’re just better together. On Wednesday, the California Regional MLS and Bright MLS announced they would begin sharing data and technology. It’s not a merger, but it is a step in the right direction for the 200,000+ real estate professionals these systems serve. This is also just one of many mergers and collaborations happening between MLSs around the country.

Our take

It’s about time! These collaborations give agents more access to the research and information they need, and also access to improved technology like better software solutions and showing schedulers. There’s hardly a downside to anything that helps agents be more efficient, effective, and connected. 

Offer your clients TLC… and possibly TIC

A new affordable housing trend is sweeping across Los Angeles: Tenancy-in-common townhomes. This model may be new to LA, but it’s similar to what’s been going on in NYC and San Francisco for decades. This trend helps solve the housing supply issue by creating more places where people with less income can live.

A quick refresher on tenancy-in-common properties:

• Old single-family homes that are converted into lower-cost, multi-unit properties. These are like townhomes, except residents share ownership of the properties.

• Each TIC owner gets exclusive use-rights of their section

• HOA dues cover the upkeep of the full property

• TICs sometimes sell for as much as 20% less than similar nearby properties

Our take

Will this model work long-term? We’re not so sure. But it’s an interesting concept to watch. Developing TIC properties may be one piece of the housing shortage puzzle, but really, people just want their own space and privacy. It’s also going to take time to see how these unique properties hold their value compared to regular condos and townhomes. It’s not a long-term answer, but it could help the local market. 

Schematics 

The news that just missed the cut

• Barbie & Rocket Mortgage teamed up for this Super Bowl Commercial

• This home was sold as an NFT for 210 ETH or about $650,000

• Buyer beware of these four overlooked home-selling costs!

• Three beautiful CA homes you can snag for a cool $2.2M

• Can’t afford an income property? Try the “rent-to-rent” strategy

Foundation Plans

Advice from James and David to win the day

Many people are thinking about taking a huge risk, getting out of the familiar, and launching into something new. Maybe it’s launching your own brokerage, pivoting to a new niche, or hitting a significant sales goal. Whatever you’re thinking about going for, here’s our advice to you:

• If you’re going to do something, go all in and give it 100%. 

• Give your plan time to work. We weren’t overnight successes either. It took years of door-knocking and fighting against our own fears to get here. 

• Take care of yourself first. Teach yourself. Reward yourself for the mini-wins along the way. Surround yourself with people who make you better, personally and professionally. 

• Get creative. Don’t follow someone else’s path to success. Take bits and pieces from everyone who’s winning in your field and create your own path. 

Last week we sat down with the team at Cottages and Gardens to talk about all things real estate, including this particularly inspiring bit of advice. You can read our full interview here.

Just in Case

Keep the latest industry data in your back pocket with today’s mortgage rates:

Every Friday we’re picking a real estate question and answering it right here in The Blueprint. Click here to ask away!

We hope you got something useful out of today’s Blueprint. If you just put one of these tips into practice every week, we know your business will be better because of it. So get out there and close some deals. Let’s make this a phenomenal week! 🚀🚀🚀

– James and David