I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. There's a whole lot of bad financial advice out there, especially when it comes to real estate. I see real estate hacks on TikTok all the time that literally make me want to throw my phone across the room, and some that are totally legit and super helpful. So today I'm going through some of these hot trends and tips with the real estate expert, Barbara Corcoran herself. We talk about which of the hacks are true and which are totally BS. But because it's Barbara, we couldn't just talk about that. We also talked about which celebrities need to get realistic about their crazy real estate listings, how often Barbara checks her bank account, which absolutely shocked the hell out of me, and which of the sharks on Shark Tank she would want to start a business with. Here's Barbara.

Barbara Corcoran, the queen, the one and only. Welcome to Money Rehab.

That's a nice introduction. I like the way it sounds.

Wait, you don't get the queen at every podcast you go to?

No, I used to. When I ran my brokerage business, people readily called it if they wanted to raise or want to impress me. All the politicians that work for me. I never promoted them.

Even when they called you queen?

No, not at all. That give away.

That's a queen move. All right, let's go to real estate. I saw you recently say that if someone's sitting on the sidelines waiting for interest rates to drop before they get into the real estate in the market, they could be making a very expensive mistake. Can you explain what you meant by that?

Of course. You either pay the bank a higher interest rate, like right now that people are complaining about, or you pay a homeowner a higher price. When interest rates go down, prices always shoot up. Then even worse than that, more insulting, is you compete with two, three times as many buyers. So it's so hard to get what you want. I think the sooner somebody gets in the market, ignores the rate, you can always refinance later. It doesn't always make sense immediately, but there's always a point where it makes sense. The smarter you are. And the other reason I think you have to get in the market is I just feel always that people have to get in the game. If you're not in the market, you have no chips to play at the board, you can't trade up, you're not making money on appreciation over time to make your next house affordable, you've missed the train.

So there's never a good time.

There's always a good time to buy real estate, which is now.

I would love to play a little game with you. I'm going to call it TikTok Trend or Truth. There's so much real estate fagezi out there on TikTok. So I would love to give you a tip that we've seen on the internet. And then for you, as a real estate expert, to tell us if it's a trend or truth and why.

Easy enough.

If you're buying an investment property, you should buy it through an LL LLLC. Truth or trend?

Trend. It sounds cool. I mean, it's helpful to have it because you have less liability, but you don't always buy it through an LLC. I have some of my properties own in LLLCs, and others not. I don't think it's a big deal.

Use the BRR R, method for real estate, the BRR method, which stands for buy, renovate, rent, refinance, repeat. Truth or trend?

Trend. It sounds so jazzy, doesn't it? It sounds so fancy. No way. It's too confusing. I don't even know what they're talking about.

That's not a real thing. Brer method?

Well, I guess you could call that formula, a method. Okay, but life isn't that way. Life is scrapping the right listing at the right time, seeing what you could do with it, and maybe renovating, maybe holding it, maybe not renovating. You have to play every circumstance independently. What those slogans do is it makes people feel like, I've got the formula. I just do this and apply it and I'm going to get rich. It doesn't work that way.

Yeah, it's case by case. All right, choose a 40-year mortgage if you can get one.

Truth or trend? Well, it's a lower payment, but you'll pay roughly 25% more in your overall payments than you would if you were with a standard 30-year mortgage. I'd go the other way. A 10-year, 15 as short as you can possibly, 15 is better than 10 is better than 15 because you'll pay much less interest over time. You want to get out of your mortgage as fast as you can. However, your payments are higher, and a lot of people can't afford that.

What if the interest rates are super low, though, and you can make more money in other investments?

If you can make more money in other investments, you'd have a hard time convincing me that you can make as much reliable more money in other investments because the other investments, you don't have as much control. Real estate is solid. You can trust it. It goes up, it goes down with the but you know where you stand. Most people are decent at owning a house. Not a lot of people are decent at playing the market.

A REIT is a good way to invest in real estate without needing to buy a property and deal with all the that might happen. Truth or truth?

Definitely true. Although you make a little less money than if you did on your own. But for someone who is risk aversive, it's a very good way to go. You don't have to get your hands dirty. You just buy in somebody already successful in the field.

Reit, Real estate investment trust, you can buy it and sell it like a stock, and you don't have to deal with tenants and their plumbing problems or whatever.

Absolutely. It's easier.

Take out a heel lock and use it to put a down payment on your next house. Truth or trend?

Trend, because a heel lock is more difficult to get. You're better off getting just a plain old breach loan from your current bike for a short term loan because you're going from one house to another. Breach loans are usually the way to go.

A mortgage broker can help you buy a house if you have poor credit or a wonky financial situation. Truth or trend?

Definitely true, but not a good idea because you use that mortgage broker for a home you really shouldn't be buying in the first place because you need extra help to be able to get the mortgage. It means it's a home you probably can't afford.

70% of Gen Xers would say they would buy a house with someone other than their romantic partner. Do you think Is it a good idea to go split-seas on a house with your friends?

It's a lot of fun to go in, you get a house that you could afford. But when the situation changes, it's a terrible idea. The guy wants to get married, she wants to move. What do you do then? You have to have a good, solid partnership agreement drawn by an attorney that cover all the possibilities. Then sometimes it's a good idea, but I just don't think so. Better off going for something smaller on your own.

Put as small of a down payment on a house as you can. Invest the rest in the stock market. You'll be able to make more in the market than you'll have to pay an interest on your mortgage. So a real estate interest arbitrage, essentially.

A false. Assuming the person knows what they're doing can make a killing in the stock market. It usually doesn't work that way.

Try house hacking. A truth or trend. It's a real estate move where you buy a multifamily property, you rent out one unit, and you live in the other.

Very true. It's the best way to get involved in residential real estate or investment, probably overall. People who do that have hedged their bet. They get a place to live, and the person upstairs is paying off most of their mortgage. It's a great way to get into real estate. Most successful.

Is it hard to transfer single family houses into duplexes or triplexes?

No, most people do it off the books and collect the money on the side. But if you want a zoning change, yes, that's impossible. Not a good way to do it. It's just treated by the IRS as an investment property when you go to sell. You have to account for all the... If you want to do it legally, have to account for all the rental income. But it What's the greatest way to get rich fast and affordable for a lot of people?

Okay, buy a foreclosed home. Truth or trend?

Great. If you get a foreclosed home at a good price, but you can't. The market's not that way right now. You have to wait till the market sinks before you in the foreclosure business, and you have to know what you're doing. It's not so easy. You have to have contractors lined up. You have to know values like what's worthwhile putting in, what isn't worthwhile putting in. It takes a certain expertise and a certain judgment that most people don't have.

Flipping houses is a great way to get rich. Truth or trend?

It's a great way, but it's got to be in a low market. Most people in a low market where interest rates are high and everybody's afraid of buying, most people aren't comfortable going into that market. They talk a good storm about flipping houses. It's the right market for it then, but they don't really do it because they're afraid. People like to buy houses when everybody else is buying houses. It makes them feel smart, which is usually the worst time to buy a house.

Buy, love, sell, high. But our emotions want us to do the opposite. Yes. If your spouse has a property, make sure your name is on it. Truth or trend?

I say also, yeah, true. And also make sure that your spouse's name is on your mortgage. A lot of people forget They put the house in two names, and they forget about the mortgage going in two names. Very important.

Because then you're left with debt if, God forbid, something happens.

Which often does happen.

More often than not. You can get a home before it hits the market by writing a letter to the current owner. Truth or trend?

Definitely true. I got my last three homes doing exactly that. The keys to the letter is you have to profess how much you love the house, why you love it, whatever you could come up with. The other thing is you have to express that you're totally flexible on closing day. You'll even wait five years if they would like it. It gets people to think. Each time I bought my house three times in a row, I had to wait three months to get a response, but they eventually call. That's a great house to buy. Take it right off the market.

Why does that work? Because you're tagging out the heartstrings?

Because you're putting the idea in someone's head to sell their home before they're thinking about it, and it causes them to sit and actually think about it and say, Well, we would like to. We're going to sell eventually. And that's usually how the conversation starts out. We were thinking of selling, but we're certainly not ready. We'd be happy to call you when we get ready. No problem. I'll wait forever. I'll wait forever. No rush. It's just I'm in love with your house and I have to have it.

Because there's a price for everything?

No. Some people are so stuck on their home, they're never going to move. No, there's no price for everything, especially when it comes to a home. People feel very emotionally attached to it, particularly older people have raised their children there and have no plans on selling. And you could whistle seat for the next five hours, and they're never going to change their mind on it.

How long did it take before you got the house when you wrote a letter?

I got my LA house within the week after she told me she had no intention to sell, a week later. I closed the deal because I said to her, I'll give you a life estate whenever you want to come back. She had family in the area. Whenever you want to come back as many weeks as you wanted each year, you come back, you could use my house. It's a part-time house for me, and I didn't mind that. She's been back every year for two years. She loves it, and I I had a good deal because of it. My beach house, I just simply left a note under the door, and by coincidence, they were planning on listing it soon, and I got that house. In my second beach house, I asked the broker if I could just peek in the window because I heard a rumor it might come available in the next year and I wanted to get in early. Then she showed me a peek, and I locked her in the house until she called the owner and asked if he would sell it to me. That one didn't include a note. I went in person.

Did you write your name?

Yes, of course. She knew who I was. I'm sure I overpaid for it. I didn't mind. It was a beautiful house.

This is a juicy good piece of advice. Basically, if you're in an area and you think the house is just so sexy that you must have it, why not? Write a note.

I was in the Cayman Islands last week, and I kept having a recurring dream of buying a two bedroom little yellow beach cottage. I kept having the dream, waking up and going back to the dream. Kind of strange. The next morning, I walked the beach in one direction and I came across the house exactly like I thought it in my dream. Now I felt right away, knowing me, I'm always buying real estate. I love the Cayman Islands. This is a dump of a house. I can make it a cream puff. I'm going to write a letter to the owner. Then I was with a good friend who said, What are you at? Am I in a project at your age? I didn't write the note. I'm still thinking about I'm regretful that I didn't leave the note. I could have decided later if I wanted it. I should have just put a note under the door.

Under the door in the mailbox, that's it?

Yeah. Well, there were no mailbox on the beach, but under the door would have worked.

You recently told Kylie Jenner and Travis Scott get realistic after listing their house super, super high and having to then drop the price. Is that right?

Definitely. You have to be realistic. And I don't even think it's a good idea to drop prices on expensive or lower priced real estate because it always is a signal to the buyer, Oh, there's a problem here. And they immediately try to figure out what the problem is, and they're encouraged to make an even lower offer. You're much better off taking your home off the market waiting three to six months, listing with a new broker and coming on with a new listing, coming on as a new listing.

Listen, you'll forget more than I'll ever know about real estate, Barbara. But as someone who's obsessed with real estate porn myself, when I see a house price drop, I'm like, What the heck is wrong with this thing?

You're right. You respond the way everybody else says, What's wrong? It puts the emphasis under lines what's the new news there, which is the price dropped. Why, why, why?

This is also, as I'm sure you've seen, the problem facing NFL player Russell Wilson and music icon Cierra, who put their Washington mansion on the market for 36 million bucks in 2022. They slashed the price by $10 million. It is still on the market. I mean, what would you suggest to them?

I would say the exact same thing. Take it off the market and listen three to six months at a new price. Do you know what is a reality of real estate sales is famous people always pay more for their real estate and almost always overpay. I distinctly remember being a young broker, and one of my colleagues that worked for me was working with Jerry Seinfell when he was at his peak, and he bought a magnificent apartment on Central Park West. You know what happened? Once he saw the apartment, the owner increased the price. I think it was by $2 million on a $6 million home thereabouts. It's been a long time. You know what Jerry Seinfell says? That's okay. He closed on it anyway. Then he wanted to buy a townhouse building a house's collection of cars next door, converted to a multi-story garage. And they raised the price on that. He said, No problem. I really want it. It was next door. I think celebrities are used to being overcharged because when you're coming in and you got a lot of hoopla about you, the seller always knows it. They don't want to leave any money on the table.

Typically, a celebrity overpays for their real estate.

Is it the case that the other way around is also true? Do people overpay if a celebrity lives in a house, or do they just think they will?

It depends. Sometimes people will pay a little extra if it's not overpriced to begin with, because they could say, You know who used to own this house? It gives you bragging rights. But it's a premium that isn't worth all that much. It's a little bit more sex appeal. But in the end, people would rather pay the least for the house anyway.

Without bragging rights.

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And now for some more money rehab. Have you ever needed money rehab?

Not really. Thank God, I always was good at making money. I was almost running out when something good would happen. And I really believe that money was meant to be spent. So I never really took it so seriously. I still don't.

How often do you check your bank account?

I don't. I have no idea. Really? I mean, why do people keep a lot of money in a bank account. I guess I should check my portfolio once in a while, but I don't do that either. I just trust the people that manage it and hope it's there when I need it. We'll see. They probably found it yesterday.

So if somebody, God forbid, put a gun to your head and said, Barbara, how much do you have in your brokerage? You would have no idea.

No, I have no idea. What difference is it going to make? I hope I don't sound ignorant to you saying that, but I'm such a good delegator. Once I start something and give it to somebody, I don't feel like I have a check on them. They're just terrific people.

You did something so awesome on your 70th birthday. I loved it so much. You threw yourself a funeral. Why did you do that?

I can't live that party down. I didn't do it as a PR event, but my God, it keeps coming up. I did it for one reason. I don't like surprises. I overheard two friends talking. They didn't know I heard them about the surprise party they were going to give at my house. I played along like I was being fooled. But meanwhile, I planned like crazy to surprise them, to turn the tables. I really wanted to. They thought they were coming to a surprise party. They were throwing. But when my brother invited them downstairs, Barbara's coming in downstairs, How are you down the stairs? I was in a coffin and I was dead. I did surprise surprise them. And what a great party it was. It was so much fun because I eventually came out of the coffin, of course, and it was a dance party.

What do you think the takeaway was for you from that party?

People love fun if it's a surprise. People will do anything to have a good time and people don't have enough good times. I am the queen of having fun. Everybody came, everybody laughed, and everybody's still talking about it. That's a good party.

That's for sure. Even at a funeral, you know how to have fun.

You know what? It's a benefit. What are you going to be dead? You never hear what people say about you. I got there to lie there and hear the speeches and what people said about me. So I don't care if I died on here. I think I already heard it.

I love to think, actually, I know this sounds morbid and dark, maybe not to you, about my eulogy. What would I want people to say about me? And then, Am I doing those things right now?

Well, that's a good measuring stick for yourself. I agree with you because you question whether you're living life as you should. Are you putting the emphasis on the important things? It's a great idea. I'm not going to do it, but I think it's a great idea for you. I've had it with funerals.

What was one of the eulogies that you enjoyed?

Well, I had a rabbi giving a eulogy, and I had a Monseigneur giving a eulogy. I can't remember who said what, but they had the similar things that they said. They said how much fun they had with me as a friend, how they always had fun with me. That's a great compliment to me, how I inspired them, not in a business way, but just inspired them to be their best self and how to make time for all the fun things in life because it's really all that counts. I'm not sure my kids bought into it. I think they were a little embarrassed by the whole thing. But all my daughter said, who was probably 13 at the time, is, When are we going to read the will? And she's not money-oriented at all. So I was really... I almost popped out of the coffee for that one.

All right, Barbara, before we let you go, I want to do one more quick game with you because you are the queen of fun. All right, in honor of Season 15, Holy Moly, of Shark Tank, there's a lightning round of questions for the sharks.

Happy to talk about the sharks.

Which shark would you say is best dressed?

Definitely me. No, I'm not saying that to brave, but clearly me.

Listen, I knew. I knew the Barbara signature. I was ready for you. Which shark would you want to be trapped on a desert island with?

Damon because he knows how to hustle. He somehow find us a meal in the Berry Bushes and build us a small shelter. I'm sure he would. Yeah, I would go with Damon.

Which shark would you want to start a business with?

Oh, definitely Mark because he's a straight shooter. He's got all that money. He would probably front all the cash. I wouldn't have to do anything.

Which shark takes the longest to get camera ready?

Oh, God. Robert. My God, he drive you crazy. Come on, Robert. You have the right cufflinks on. Come on, Robert. Oh, my God. He makes a woman look easy.

Which shark makes you laugh the most?

Kevin, surprisingly. Everybody thinks of him as a bad guy, but he's got great comic timing, and he always catches me by surprise. I think he's the funniest guy in the set.

Which shark is the most compassionate?

Well, Laurie pretends to be, but we all know better than that. I would say Mark, again. Mark is most compassionate because he puts his money where his mouth is. He says, I feel for you. I know what you're after, and I'm going to give you a million dollars. That's different than just saying, You're incredible. You're just the perfect person, and they're not given over the million.

By the way, Mark will respond to you every single email.

Yes, he's terrific. And he doesn't care who you are, he'll respond. Don't give out his cell number, though, or we won't be able to get through.

Which shark is most competitive?

I'd say Robert because he has to compete with Mark. He's insecure enough. He just wants to be like Mark, so he competes like crazy. Always goes after the same deal as Mark's once all the time.

Which shark has the best work-life balance?

Probably Robert, again, because he plays so much. He doesn't work that much, I don't think, from what I could see.

Which shark would you go havesies with on a house?

Havzie? Oh, Mark, because he'd buy a bigger, better house, he'd never use it.

Who was the best guest shark?

Kevin Hart, without a doubt. The smartest guy we've ever had on the set. I hope he comes back this season. He's hard to get, but he's brilliant. He's not funny on set. He's just brilliant in sizing up people and slicing a deal in a way that makes it very appealing to whoever he's talking to. He's a genius, I think.

All right, Barbara, we end our episodes by asking all of our guests for a tip that listeners can take straight to the bank. I would love one, actually, for myself. I just turned 40 last week. What would you tell your 40-year-old self?

I would tell myself exactly what I told myself. You deserve a Mink, and I went out and bought it. And then right after that, I thought, You deserve a Porsche, and I went out and bought it. I think whether you're 40 or 30 or 20 or whatever, you set a goal, something you dream about. My first big splash was my first deal. I spent the whole check on brand new coat. I never regret it. I wore it up and down the streets for four years and looked the part. I think whatever you think you deserve, go out and spend it. Maybe not prudent because you say, What if I don't have the money? Go in a hop. Charge my Porsche. I found a way to pay it off eventually. Maybe a little late, but I paid it off eventually. No, I think you have to live life as though you'll never get another chance.

I mean, some people live like they're going to die tomorrow, and some people live and spend like they're going to live forever. I think that there's somewhat of a balance that you should find there, but it sounds like you live as if you're going to die tomorrow.

Yes, I do.

Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin. Money Rehab's executive producer is Morgan Lavoy. Our researcher is Emily Holmes. Do you need some Money Rehab? And let's be honest, we all do.

So email us your moneyquestions, moneyrehab@moneynewsnetwork.

Com, to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Money News for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.