MAKING SMART PLAYS WITH YOUR REAL ESTATE & FINANCING GAME PLAN
Throughout this show today, you will be hear some stories of homebuyers who made some smart plays and how they accomplished it. Tom King, our appraisal expert will be sharing his view of the market we will be entering in 2020 and how to line up your real estate play to win.
What do YOU want to accomplish with YOUR mortgage? Let’s stay connected! Subscribe for weekly Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com Call me directly at (901) 482-0354 or email at Jo@JoGarner.com
To Your Success,
Jo Garner, Mortgage Loan Officer NMLS# 757308
Good morning, Memphis! Welcome to our internet listeners and podcast listeners across the 50 states! You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. You can connect with me at www.JoGarner.com. Our general topic is MAKING SMART PLAYS WITH YOUR REAL ESTATE & FINANCING GAME PLAN. Thank you to real estate attorneys Rob Draughon and Shelley Rothman of Griffin, Clift, Everton and Maschmeyer Law Firm for sponsoring this episode of Real Estate Mortgage Shoppe. For your home purchase or refinance, contact Rob and Shelley at (901) 752-1133. Subscribe to get Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com (pre-recorded this 12-28-19 show )
INTRODUCING TOM KING OF BILL KING APPRAISAL SERVICE
Tom King is back in the Real Estate Mortgage Shoppe studio after juggling his many talents as a real estate appraiser AND his talent at running the lights for the big Bellevue Baptist Singing Christmas Tree production. Take a moment, Tom, and tell our new listeners a little bit about yourself and the services you offer your appraisal customers. (Tom introduces himself and talks about the services he offers his customers )
(Jo) We are talking about making smart plays with a winning real estate and financing game plan. It reminds me of something Coach Mike Norvell said about College GameDay here in Memphis last month. Coach Norvell shared some of his philosophies and strategies about winning. He shared a quote the he heard a few years ago that struck him like a lightening bolt “Are your habits for today on par with your dreams for the future?”
Coach Norvelle had his players each bring a picture to put on their lockers that represented the reason they play to win. Not just to play in the NFL but a picture that represented the underlying reason the WHY factor that gives purpose to why they want to be the best version of themselves. He said, “You have to have a big enough WHY to push through the obstacles to get you to your goal.” The same principle works in life. Determine your underlying reason or Why that motivates you to be the best version of yourself.
Mike Norvell went on to talk about his football coaching philosophy. He said, “Evaluation is the key to success in football. Evaluate your players, coaches and current team. Focus on your strengths. Assess what your needs are. What fits in your system like speed, versatility.” “Prepare and put yourself in the best position. Control what you can control.”
As I listened to Coach Norvell talk, it got me thinking that this same winning philosophy works in life. If you want to live in a bigger house, travel the world, enjoy financial independence with passive income from real estate rental property, you have to evaluate where you are, where you want to go and what it is going to take to get you there.
Take a page from Coach Mike Norvell’s play book and post a picture that you will see everyday that reminds you of the reason WHY it is worth it to you to pay the price to get from where you are to live the life you want to live. Who or what motivates you to push out past your comfort zones to be the very best version of yourself.
One of Coach Norvell’s winning philosophies is to evaluate your strengths and play to those strengths. So, what if you are weak in a certain area, you can work on improving, but in the meantime, delegate, regulate or eliminate the tasks that you cannot do well yourself.
If buying a home or restructuring your financing is on your bucket list of tasks to accomplish to get you closer to your goal, let’s talk. You are the star quarterback running the plays. Let me be one of the coaches on the sideline giving you the inside information you need when it comes to funding those dreams. Make Your Plan, Let’s Work Your Plan. If the deal works for you today, let’s do it today. Connect with me at www.JoGarner.com or just call me at (901) 482-0354.
Tom, as an appraiser, you have had a great bird’s eye view of our real estate market here in the Mid-South. How would you evaluate our local real estate market? If you put your coaches hat on, what are some inside tips you would give someone who wants to sell a home right now? What are some inside tips you would give someone buying a home in this market? (Tom launches into these topics)
You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. What do YOU want to accomplish with your mortgage? Make your plan. Let’s work your plan if the deal works for you today, let’s do it today. When we come back Tom King will be giving some more appraisal tips on what to do if your appraisal value comes back too low and more. See you back in just a moment.
2nd segment after 9:15 advertising break – (producer to start the song “Taking Care of Business” by Bachman Turner Overdrive –but bring the volume down before the lyrics start) It’s time to talk shop with Talk Shoppe’s Business Tip For Real Estate Professionals. Talk Shoppe is a marketing company offering free education and networking to anyone interested in real estate or in business. Talk Shoppe is made possible by the financial support of its sponsors and advertisers. For more about Talk Shoppe, go to www.TalkShoppe.com (shoppe) For our Talk Shoppe Business Tip today we have Talk Shoppe Kaizen award-winning business coach, Eric Eurich of Focal Point Business Coaching. Eric Eurich, what is our Talk Shoppe Business Tip for Real Estate Professionals today? Eric Eurich shares his tip.
QUESTIONS TO ASK ERIC EURICH OF FOCAL POINT BUSINESS COACHING:
- Eric: For the business owners and sales people out in our audience, what is the best way to contact you? (901) 340-9558
TOPICS COVERED BY TOM KING, BILL KING APPRAISAL SERVICE
- Tips to home sellers in the market we will be entering in 2020
- Tips to home buyers in the market we will be entering in 2020
- How to handle a low appraisal value
- How to handle repairs –avoiding the cost of a final inspection and avoiding the hassle of having to renegotiate terms on a contract after the home inspection is done
TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER
As a loan officer, I sometimes feel like a coach who surveys what is going on out on the field and informs my customer, who is my star quarterback, on some moves that could counter any opposition. Here are some of those tips:
- Evaluate your budget to determine the maximum comfortable house payment.
- Evaluate what is the maximum you can spend and still keep a more than adequate emergency fund.
- Using Other People’s Money OPM to keep more money in your emergency fund.
-Fannie Mae’s new and improved Home Ready 3% down loan program can save homebuyers thousands of dollars cutting the amount of private mortgage insurance required. On a sales price of around $160,000, the Home Ready program can save a home buyer over $20,000 over the life of the loan by reducing the amount of lender required mortgage insurance that only helps the lender. The Home Ready, unlike some special programs,does not require the buyer to be a first-time homebuyer. There are income restrictions on the borrower for most zip codes but, on the other hand, the Home Ready program allows a number of allowances for boarder income and non-occupying borrowers that can be difficult to get on other low-down payment programs. Home Ready programs adds another little bonus—they allow the borrower to tack on and use a down payment assistance program to help with the 3% down. https://www.fanniemae.com/content/fact_sheet/homeready-overview.pdf
-Tennessee Housing Development Agency is a state program used on properties located in the state of Tennessee. The interest rate offered on this program is usually lower than the going rate or for a little higher rate, the borrower can get down payment assistance for up to 5% of the price of the house to cover the down payment and some of the costs not paid by the seller, allowing the buyer to get into his new house for nothing down or close to it. There are restrictions for income on this loan in most cases with some exceptions. For more about THDA go to www.THDA.ORG or call me personally after the show and we can do some comparisons for your situation. (901) 482-0354.
-City of Memphis or Shelby County Down Payment Assistance program. This program also has some first-time homebuyer requirements which means not owning a home within the last 3 years. These down payment assistance programs offer funds for the home buyer to use to put down at the table, and with the seller helping the buyer with some costs, the buyer can get into this program many times for just the minimum of $500.
-USDA Rural Housing 100% loan. This program restricts the property to areas not as heavily populated as the higher densities in the cities. There is an income restriction on this program and if the seller pays the closing costs and prepaid taxes and insurance for the buyer, then the buyer can sometimes get into the home with zero down or very little down.
-The Veteran Administration loan offers eligible military veterans a chance to buy a home with zero down if the seller pays for the buyer’s closing costs and prepaid taxes and insurance.
There are other programs available beside these just mentioned. If you want to know more, Google “Down Payment Assistance” and the name of YOUR state and you should hit the jack pot. Many metropolitan cities have their own down payment assistance programs with certain restrictions. Memphis has the City of Memphis Down Payment Assistance Program and in addition to the regular program, they have some funds especially for Police, Firefighters and Teachers. But ask an experienced, reputable realtor in your area what programs THEY recommend. They usually know what programs are good and which ones may be not so advantageous. You can also check with Rob Chrane at Down Payment Resource, supported by Housing Finance Agencies across the country, for assistance programs in YOUR city and state. http://downpaymentresource.com/about/leadership/
–Owner occupied homes only require zero to 5% down payment. Investment properties require at least 20% down.
-Substitution of collateral
-Borrowing against your 401K
-Using an Equity Asset line of credit secured on tradeable stocks that are not qualified retirement funds
-Cash out refinances on other homes you own other than the rental house you are trying to buy
-Cash value in a life insurance policy
-Find a real estate investing partner with cash.
3. Create Multiple Exit Strategies When You Buy A House
Brent and Bella Beaumont’s story-MULTIPLE EXIT STRATEGIES
Brent and Bella had been renting an apartment in an neighborhood that seemed to be attracting more crime. When they first got married and moved into the apartment the rent was less than $900/month but now it was over $1,000 per month. When Brent and Bella got the news they were going to have their first baby, the apartment, they realized was too small for their growing family. The payment was too large.
How were they going to find a bigger home with a smaller payment? They wanted to be in a good area where their children could go to the same schools that Bella attended growing up The other challenge was they had very little in savings to put down on a house.
The decision to rent vs buy? Brent and Bella didn’t think they had a choice. But, they talked with a realtor who explained to them that, right now, in the Memphis area, they really could find a bigger home in an area where they wanted their children to grow up with a smaller payment and for less than $1,000 down payment.
The realtor showed Brent and Bella several homes and they made several offers. Finally, the seller on a nice 3 bedroom home accepted their offer and even agreed to pay the Beaumont’s closing costs. Their realtor pointed out two advantages of buying the home they were purchasing. As their loan officer, I pointed out two more advantages that would give the Beaumont’s, not one, but multiple exit strategies so they would never have to feel stuck.
The first advantage, the realtor pointed out, was that in the neighborhood where Brent and Bella had decided to buy, home values had traditionally increased in value over time. That meant that 3 to 5 years down the road, they could probably sell the home and buy another home if the need arose to move.
The second advantage, the realtor pointed out after she researched the area, was that the property the Beaumont’s were purchasing was located in a strong rising rental market. If the trend of rising rent rates remained steady, the Beaumont’s would also have a choice of buying a new home later on and using this property for income-producing rental income -just in case the home selling market was tougher a few years down the road when and if the Beaumont’s decided to move to a different home.
The third advantage, as their mortgage officer I got to point out to them, was that the mortgage program they were using was a government FHA assumable loan. That meant, if the Beaumonts could not sell their home outright in a future market and they did not want to use the property as an income-producing rental, they could allow someone to qualify with their mortgage company to take over payments or assume their mortgage instead of the future buyers having to get a new loan. If mortgage rates were much higher in the future when the Beaumont’s decided to sell, they buyers might even pay the Beaumont’s more upfront for equity to have the privilege of qualifying and taking over the existing much lower interest rate mortgage.
The Beaumont’s had three possible positive exit strategies on buying their first home. They could enjoy that peaceful feeling of being free and not stuck. They got some down payment assistance from the city of Memphis and some gift money from parents too and bought their home with about $500 down. They moved into a much larger home than the former cramped apartment with a fixed interest rate payment a couple of hundred dollars less per month than what they had been paying rent. A very SWEET deal for the Beaumont’s and their sweet little one on the way.
- Story about the couple expecting their first child that could not afford to pay the full price for the home they desperately wanted. Their strategy to get the strongest prequalification letter possible. And a picture of themselves holding a blue baby onsie between them with a letter below letting the sellers know how much they loved the house that they could see their child one day playing in the back yard where the sellers children had played many years before….
REAL ESTATE TIP OF THE WEEK (Eric Eurich shares a real estate related money-saving or time-saving tip):
Talk Shoppe offers free networking & education to anyone interested in real estate, business or health and wellness. Talk Shoppe meets every Wednesday 9-10AM Check the website for event locations at www.TalkShoppe.com Come equip, engage and empower your business with us.
- The Tigers are playing today in the Cotton Bowl Go Memphis Tigers GO!!
- We wish all of our listeners a happy and prosperous 2020. Happy New Year !
4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.
5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE RECOMMENDS THAT YOU CONSULT WITH A FINANCIAL, LEGAL OR OTHER CERTIFIED, LICENSED PROFESSIONAL BEFORE ACTING OR INVESTING ON ANYTHING YOU HEAR OR SEE FROM THE CONTENT ON THIS SHOW OR BLOG POSTS. THE INFORMATION WE SHARE ON REAL ESTATE MORTGAGE SHOPPE IS GENERAL IN NATURE MEANT FOR GENERAL EDUCATIONAL PURPOSES ONLY. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS.
Mike Norvell, on his coaching philosophy “Are your habits today on par with your dreams for the future?”
- Pat Goldstein, Realtor with Crye-Leike in West TN and North Mississippi (901) 606-2000 The “Gold Standard” in real estate
- Rob Draughon and Shelley Rothman of Griffin Clift Everton and Maschmeyer Law Firm (901) 752-1133
- Mark McLaurine, Refrigeration Unlimited HVAC repair strategist www.myhvacman.com
Transitional Music: “Play to Win” by Al Green; “I’m Winning” Santana; “Memphis Tiger Fight Song;”
“Taking Care of Business” by BTO for the Talk Shoppe Business Tip For Real Estate Pros
ABOUT TOM KING, APPRAISER WITH BILL KING COMPANY
Tom is a well- respected and sought after appraiser in Memphis, Tennessee. He is a second generation appraiser with 40 years experience. He has been elected to the Memphis Area Association of Realtors Board of Directors three times.
Tom is a certified residential appraiser in Tennessee. He have appraised over 20,000 homes in his career. A graduate from the University of Tennessee with a degree in real estate, Tom is also a Certified Relocation Professional (CRP). Tom also has vast experience in dealing with the county and state boards of equalization and in valuations of property for tax appeal purposes. (901) 487-6989
ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
“Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you want to buy or refinance?
Different clients have different priorities in life—some are buying their first home with very little down payment funds. Some are recovering from medical challenges, divorces or preparing to send children to college and some are embarking on a long term goal of buying properties to build rental income.”
Jo Garner is a mortgage officer with extensive knowledge in tailoring mortgages to her customers who are refinancing or purchasing homes all over the country. She offers conventional, FHA, VA or other loan programs for refinancing and purchases.
Jo can help you look at rent vs buy, when it makes sense to refinance, how to get the best deal on your home purchase financing.
Jo Garner has been in the real estate/financing business for over 25 years. She got her start in Portland, Maine where she first began her real estate career. She received her real estate education from the University of Southern Maine and was personally mentored in San Diego, California by Robert G. Allen, author of Nothing Down, Creating Wealth and The Challenge.
On moving back to West Tennessee in 1987, she went into business buying and selling discounted owner-financed notes secured on real estate. In 1990 Jo went to work for a residential mortgage company and has been a mortgage loan officer for over 25 years. Her goal is to offer excellent, affordable service to her customers, tailoring the loan programs to the specific needs of her clients.
In addition to her work in the mortgage field, Jo Garner is the primary sponsor and founder of Talk Shoppe in Memphis. www.TalkShoppe.com Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com