Season 2, Episode 8: “Real-Estate Secrets Unveiled” – Interview with Nathan Priest

How a 7 % Mortgage Beats 100 % Rent

Nathan Priest has logged 20 years and three market cycles in Kansas City real estate.
His core math:

“Every rent check is 100 % interest. A 7 % mortgage is a discount by comparison—and refi windows always come.”

He’s proof. The homes he snagged in the 2008–12 slump are still the best cash-flowers in his portfolio.

Market Snapshot – Summer ’23

1. Mortgage handcuffs. Owners sitting on 2–3 % rates fear the move-up payment shock, freezing resale inventory.
2. 5-month price dip. School-start to New-Year lull is the only season buyers aren’t bidding 10 % over ask.
3. STR bans = listings. Cities capping Airbnbs are forcing investors to dump rentals—call them first.
4. Under-400 K squeeze. Institutional landlords swallowed thousands of starter homes; builders now start at $400 K+.
5. No-cost refis. Lenders already marketing “buy now, refi free later” programs for the expected 5–6 % rate slide in late ’24.

Seller Playbook – Un-Handcuff & Cash-Out

• Paint + carpet = $30–50 K. Priest lines up contractors paid at closing, zero upfront.
• Price 1–2 % under comps. Creates an auction effect without major remodels.
• Offer a 2-1 buydown. Cheaper than a 10 % price cut and feels like a 5 % mortgage to buyers.

Buyer Playbook – “Don’t Live Life in Fear”

• Lock the house now; refi when rates normalize.
• A $275 K starter at 7 % costs ±$1,900/mo—only $150 more than renting the same ranch.
• In 18 months that house may list at $305–320 K. Waiting = $45 K lost equity.

Rapid-Rush Highlights

TL;DR – Episode 8 Takeaways

• Renting is 100 % interest.
• 7 % for 18 months < 10 % price jump when rates hit 5–6 %.
• Mortgage-handcuffed sellers need contractor-paid-at-close make-readies.
• STR crackdowns create off-market listing gold.
• Ask the question. A handwritten letter still buys houses.

📌 KC barbecue, left-handed drives, and $60 K equity math—Nathan Priest shows why the next 5 months are a buyer’s cheat code.

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