What is a Mello-Roos? - YouTube

hello everybody thank you for coming to this  week's video blog my name Robert Rico so excited  

to be here with you to learn about this little  stick career learn about these new stuff you'll  

be engaging in on a daily basis this is the deal  today we're going to talk about something that to  

many of you is brand new some you probably never  even heard of it's actually kind of like what are  

you talking about and this is called mello-roos  you with me now what is mello-roos listen up by  

spelling @m e ll o /r o OS mello-roos now what the  hell is melon rules those of you have never heard  

it I'm gonna try to explain this as clearly as  possible and that's a rather simple concept ready  

mello-roos mello-roos is an additional tax and a  property aside from the property tax you're with  

me let me cut it down break it down ready here we  go you got a buyer yeah you're gonna buy it once  

my house - very excited you're gonna take care of  them I don't find a house you'll find them a house  

of course here in California everybody has to pay  what property taxes you're with me and property  

taxes nice and simple this is in the white house  for a million dollars property taxes typically  

are of course based on the value of the property  you with me easy house for a million dollars your  

taxes on that house your property taxes stick  with me that's the key word here your property  

taxes on this house would be based on the value  of the house not a big deal that's what we call ad  

valorem push that aside so you get your property  taxes like everybody does now some communities  

are brand-new some communities are brand-new  or rather new we'll assume it's on five years  

now maybe 10 years new and these communities may  have ready mello-roos now millender's is what we  

call an additional tax it's an additional special  assessment so the tax on top of the tax now one  

thing I would want to pay additional taxes well  that's where mellitus comes in now what happens  

is this when these communities when these little  districts were first built these little districts  

neither their own fire station their own schools  write their own a roadway so of course they were  

going to have of course this district this  community pay for it how they pay for it as a  

bond and these bonds typically last I don't know  20 years maybe 30 years some can go as long as  

40 years but let's just go to the average of 20  years so these additional taxes are being paid  

a year after year after year by the people who  live in this little district here with me until  

the 20th year and once that 20th year is here  and it arrives hallelujah for example think of  

an airplane right you get an airplane you're gonna  travel you want to be comfortable right so you get  

in the airplane you're okay you're comfortable you  get people next to you your elbow room isn't the  

best but you get to your destination right you  get dinner or you could pay a little extra pay  

the mello-roos and beware yeah first class you're  with me be up front works a lot more comfortable  

I already might offer you I don't know a better  snacks they might offer you want to know a better  

service they might offer you a better bunch of  other stuff because with mello-roos don't forget  

because with mello-roos you do get additional  services you do get additional items like we  

discussed you getting your schools new roads  new police departments new fire stations all  

that good stuff so that being said you have to  ask yourself as a buyer are you willing to pay  

that extra mello-roos to live in a district  that's slightly more new and has more things  

to offer now most people will say hell no I don't  want to live in that it's just too much taxes you  

want me to be taxed on top of taxes five minute  the house I'm going to tell you that some people  

are willing to pay the melrose if you put them in  a more exclusive area a district that you know is  

more well taken care of more modern and it's more  concentrated for this particular area you with me  

hope that makes sense to you so now why is this  important for you as a Realtor I'll tell you why  

ready here it goes that doesn't mean a buyer and  the buyer shoots go find me a house for a million  

bucks because the lender says they can buy a house  for a million bucks because the lender said they  

can afford a payment of $5,000 you with me and a  house for a million bucks is $5,000 example do you  

find them a house yeah the guys excited the buyers  excited sake I'm so glad you found me this house  

oh my god I love it the payments 5000 bucks there  max the payment is 5000 bucks the max the lender  

said they can buy that they are approved for but  then you find out that I have some Miller rules  

so that $5,000 payment now goes up to I don't know  maybe $6,000 which is beyond what they can afford  

are you with me so they now no longer qualify for  this house because that darn Ghana Belarus tipped  

the scale are you with me adding that mello-roos  tip the skill to the buyer no longer can afford  

this property in this location why because it has  Melrose so it's important to you as a real estate  

agent to make sure that when you're showing  properties that you understand what Melrose  

is because if this property does have Melrose  that you're showing buyer may not qualify now  

how do you find out about how South Melrose simple  we told you before you contact your best title rep  

and say hey I got an address here for you I'm  gonna show it tomorrow five four three two one  

Main Street can you let me know has mello-roos  - all public records and if it does make your  

adjustments when you're showing these houses I'm  making those offers hope this helps okay have a  

fantastic day there any questions are the top if  you wanted to touch leave it down below have a