MEMPHIS REAL ESTATE-LOOKING BACK & THE VISION FORWARD 2020

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MEMPHIS REAL ESTATE-LOOKING BACK & THE VISION FORWARD 2020

Jo Garner, Desiree Stennett & Tom King with Magic Binoculars

Famous author Robert Kiyosaki said, “The problem with real estate is that it is local. You have to understand the local market.” Today we will look through our Magic Binoculars backward at where our Memphis real estate has been and forward where it appears we are headed in 2020. There are numerous areas around Memphis, TN where you can grab onto the train of progressive momentum in the residential real estate market by investing near the commercial projects burgeoning all around the city.

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WELCOME—HERE’S WHAT ‘S COMING UP…

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 MEMPHIS REAL ESTATE-LOOKING BACK & THE VISION FORWARD 2020. Subscribe to get Real Estate Mortgage Shoppe podcasts with show notes at www.JoGarner.com Call us while we’re live today January 4th, 2020 at (901) 535-9732.

INTRODUCING TOM KING OF BILL KING APPRAISAL COMPANY

Jo Garner & Tom King with Magic Binoculars

Tom King, our expert appraiser and all around great guy is at the microphone ready to give us a good description of what is going on in the residential real estate markets. Tom, tell our new listeners a little bit about yourself and what types of real estate appraisals you do for your customers. (Tom introduces himself and lists the types of appraisals he does.)

INTRODUCING DESIREE STENNETT OF THE COMMERCIAL APPEAL

Jo Garner & Desiree Stennett peering into the future with the Magic Binoculars

Desiree Stennett, growth and development reporter for the Commercial Appeal newspaper, will be highlighting some of the high performing markets for Memphis. She writes about commercial real estate, retail, new businesses and the Memphis economy. (Desiree introduces herself and talks about some of the billions of dollars being invested in Memphis downtown & the upcoming article she wrote that will be published in the Monday addition of the Commercial Appeal)

(Jo) Consider the Pluses and Minuses of the Memphis market today.

  1. The biggest challenge for buyers is that there is a serious lack of homes for sale, especially for the smaller, affordable housing.
  2. Home prices have been generally moving up and outpacing wage growth, which is making it more difficult for home buyers to afford to buy. With a good lender and a good realtor, they can help you find your way safely and comfortably.
  3. Mortgage interest rates have been the lowest in 2019 since 2011. Interest rates will carry the show again in 2020 if predictions are correct and remain generally low throughout the year. The Fed says they do not plan to raise their rates in 2020, but remember, the mortgage rates are not directly tied to the Fed Rate and can go up and down multiple times in a day or a week.
  4. Builders are continuing to build, easing the inventory shortage, but they are not building enough of the smaller, affordable homes. Big jumbo homes will experience some drop in value in 2020.
  5. The Millennial generation homebuyers will far out number the other generations
  6. And one last prediction—National weather experts say that Memphis and the Mid-South will see a LOT more precipitation over the next few months than usual. If you are planning to sell your home, make sure your gutters are cleaned out and your roof doesn’t leak. If you are a buyer, well, bring you’re umbrella.

We are talking about Memphis Real Estate-Looking Back and The Vision forward 2020 Tom King, what will the residential real estate markets look like in 2020 as compared to last year? (Tom compares last year’s real estate market with the forecast for 2020-tremendous drop in inventory in the Greater Memphis area. Rising prices of homes-especially downtown.)

(Jo) We have Desiree Stennett, growth and development reporter for the Commercial Appeal, our Memphis newspaper. We will be hearing more from Desiree after our commercial break, but I was hoping, Desiree, that we could get your predictions on our Memphis commercial real estate environment in 2020. (Desiree launches into her topics until our 9:15 AM break—to be continued after the break)

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. Connect with me at www.JoGarner.com . When we come back Desiree Stennett, reporter for the Commercial Appeal and Tom King our expert appraiser will be looking back and predicting the vision forward for Memphis real estate in 2020.

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THE LOOK BACK MEMPHIS TRIVIA CONTEST

2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Twelve of his Memphis History lectures entitled Making Memphis – Storytelling by Jimmy Ogle may be viewed by Googling “JIMMY OGLE PINK PALACE”. View at JimmyOgle.com. . The Look Back Memphis Trivia Contest is sponsored by John and Jennifer Lawhon of Lawhon Landscape (901) 754-7474 the Lawhon’s can help you plan your landscaping if you have a BIG, BIG project or a smaller project or you can do the big project in phases . The Lawhons are giving away a $25 gift card to the first person with the correct trivia answer. If you know the answer to our trivia question, call us at 901 535 WREC 901 535-9732. Garner # 168 * 01/04/20
Trivia Answer: Collierville

Question: Originally known as Oak Grove, I was incorporated in 1870 in Shelby County. Who am I?

Hint: I am the third largest municipality in Shelby County.

Hint: I was the home of the Wonder Horse Factory in the mid-20th century.
Hint: I won a national recognition in 2014 from Parade magazine.Final Hint: My 150th birthday will be celebrated on February 17, 2020 in Town Square. Who am I?

Answer: Collierville With its Downtown a jewel of Victorian-era homes and old churches surrounding a historical town square, Collierville, Tennessee, retains a small-town charm that keeps longtime residents rooted and draws increasing numbers of new citizens yearly. Once a stagecoach rest stop and later a railroad stop on the Memphis and Charleston line, the town anchors the southeast corner of Shelby County. The Union army recognized the importance of the town’s location during the Civil War. Battles to take the town were waged on both sides, and in one battle, Maj. Gen. William Tecumseh Sherman escaped capture at Collierville Depot.

The name and even Collierville’s home state were in question at various times throughout the 19th century. Jesse R. Collier, a local real estate entrepreneur, advertised lots for sale in the Memphis Enquirer as “The Town of Collier” in 1836. Even after its first formal incorporation in 1850, the town was also known as Oak Grove and mistakenly referred to as “Colliersville”. Known for cotton, cattle, dairies and cheese in the early years, it became home to the famous Wonder Horse Factory in the mid-20th century

More than 50,000 people now call Collierville home. The town covers 18,500 acres, with another 13,700 acres in reserve for future use. A thriving business community includes antique and specialty shops and unique restaurants in addition to larger retail venues and nationally known restaurants. As urban expansion approaches from metropolitan Memphis, the community leaders and citizens strive to maintain and protect the town’s unique history, its values, and personality. From a list of over 2,000 communities, Collierville was recognized as “America’s Best Main Street” by Parade magazine in 2014. Collierville celebrates its Sesquicentennial (150th birthday) on February 17, 2020.

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TOPICS COVERED BY DESIREE STENNETT OF THE COMMERCIAL APPEAL

Topic: Downtown development at the beginning of 2020

As the new year kicks off, there is about $5 billion in development planned or underway in Downtown Memphis. Leading the pack on this development is Union Row, a nearly $1 billion project that will add about 1,100 apartments, two grocery stores, two hotels plus retail and office space starting at Union Avenue and Danny Thomas Boulevard.

Not far away is another massive project that plans to revitalize The Pinch District, also adding apartments, retail, office and hotels between St. Jude Children’s Reach Hospital and the Pyramid.

Jennifer Oswalt, president of the economic development organization, the Downtown Memphis Commission, said this puts Downtown in great shape for the new year but also said there is a lot of work left to do to make sure all of these project happen.

The Commercial Appeal will have a story on commericalappeal.com and in the paper on Monday that gives an in-depth update on the five biggest projects leading the development in Downtown.

TOPICS COVERED BY TOM KING OF BILL KING COMPANY

  1. What do you see residential real estate appraisal values doing in the Memphis Metropolitan Area in 2020?
  2. How will 2020 differ from 2019 in our local real estate market? How will it be the same?
  1. What type improvements or preparations can a homeowner do to his home for the best chance of getting the highest appraisal value on his home?
  2. Give reasons why keeping the condition of the property in excellent shape will help get you the higher value than if you left items unrepaired.
  3. What are some examples of typical adjustments you make to value on a home when comparing to other similar homes in a neighborhood?

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TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER

  1. How do you find the best place to invest in real estate in the local Memphis market?

Many of my regular mortgage clients are real estate investors. The name of the game for many of them is finding a property to buy that presents them with the maximum potential to profit with the least amount of risk. Here’s rules some of them use to scope out the real estate market:

  1. Population is growing in that area. People are moving in and not making mass exits out.
  2. Job market is strong. There is an increasing number of jobs in close proximity to your property that are paying good wages, which attract good quality tenants.
  3. Diverse Industries surrounding the area. The old saying, “Don’t put all your eggs in one basket” rings true with the ups and downs in the economy. For example, if the logistic companies have some bad years, the medical centers are still doing well.
  4. Invest by the numbers: If you are buying rental property, you need to look at formulas. In Memphis there are plenty of opportunities to invest with a lower price-to-rent ratio. Price-to-Rent Ratio = Home Price/(Rent Rate x 12.) For example, if the property is worth $140,000 and the rent is $1,800 per month, then the price-to-rent ratio would be about 6.9—not bad.
  1. Home Sweet Home. If you are buying a home for your primary residence, you want it to be safe and comfortable. Look at proximity to work, school, shopping and playing. Check the crime rate in the area. Check the covenants and restrictions for the neighborhood to make sure the property will work for the way you want to live.
  1. What are some ways a homebuyer can make his bid for the property more competitive than someone else competing to buy the same home?
  2. Be Sure…Be Swift

I am remembering a young couple we will call them Ed and Ellie Ethan (not their real names). Ed and Ellie had been struggling to get a house. The clock was ticking because their first child was to be born in about 30 days. They had been squeezing in time after work and on weekends to look at house after house. Either the house would not fit them or they would love the house, make an offer, and someone else would beat them out with a higher offer.

After a long hard look at their battle strategy, they realized that going about the house hunt in the traditional way was not working for them. They were short on cash and had tight restrictions on what they could comfortably pay for a home. They really liked homes in areas where other families were willing to pay higher than the listed sales price in order to get the seller to accept they offer. Not good odds.

Time for a new strategy. Ed and Ellie asked if they could bring in all of their paystubs, bank statements and a few other items and have the mortgage company review, not just their credit, but their income and asset documents too. The mortgage company sent an email to them with a prequalification letter and a letter letting them know that, based on the income and asset supporting documents they brought to the mortgage office, they appeared to be very strong borrowers.

The next time the Ethans found a house they desperately wanted, their realtor submitted the home purchase offer with the prequalification letter and the letter from their lender letting the Ethans know that, based on their credit, their income and asset documentation, they appeared to be very strong borrowers.

Before the realtor sent the offer to the seller’s agent, the Ethans asked their realtor to also include 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….

It has been proven through research that, for most people, a decision is made using 10% logic and 90% emotion. Regardless of any other offers from others, the sellers seemed to “connect” with the Ethans and, regardless of a higher offer by some other party, the sellers wanted the Ethans to be able to buy their home and raise their child there.

  1. Other tips:
  1. Review your income and your bank statements and credit card statements to determine what you can truly comfortably afford on a house payment
  2. Review what you will need for an emergency fund
  3. Review your credit to make sure your report is accurate and to look at reducing the percentage of credit card owed balances. Go to www.annualcreditreport.com to get your once-a-year free credit report
  4. Don’t open new accounts while you are in the mortgage process, especially not 12-months-same-as-cash accounts.

REAL ESTATE TIP OF THE WEEK (Tom King of Bill King Appraisal Service offers real estate tip of the week

ANNOUNCEMENTS:

Talk Shoppe offers free networking & education to anyone interested in real estate or in business. Talk Shoppe meets every Wednesday 9A-10A CT at Concorde Career College 5100 Poplar Ave Memphis, TN (The Clark Tower 1st floor) Wednesday January 8th, 2020 Loretta McNary of the Loretta McNary Show presents “Three Steps To Rock Your Star To The Top.”

Talk Shoppe events are free thanks to supporters like Greg and Kelly Inman of Next Day Access giving your handicapped or aging loved one access in their home with wheel chair ramps, grab bars, and stair lifts. Accessible Living Delivered In A Day www.nextdayaccess.com (901) 617-4675

Thank you to Leah Anne Morse of All Things New for your financial sponsorship to make Talk Shoppe’s free networking and education free to our community. Leah Anne makes down sizing, estate sales and other family changes much easier and pleasant for her clients. Contact Leah Anne at (901) 488-9733 www.AllThingsNewWTN.com

2. The Tigers are playing basketball later. Go Tigers

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.

QUOTE CORNER:

Abraham Lincoln and Peter Drucker “The best way to predict the future is to create it.”

www.LiveLifeHappy.com “Accept what is, let go of what was and have faith in what will be.”

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REJOINDERS:

  1. Nita Black, business strategist with www.901ELearn.com Bartlett, TN Make money online sharing your knowledge and skills.
  2. Pat Goldstein, realtor with Crye-Leike Inc. in West Tennessee and North Mississippi (901) 606-2000 “The Gold Standard in Real Estate”
  3. Troy and Lynn McDonald of Erin McDonald Insurance Agency, Bartlett, TN (901) 849-7101

Transitional Music: “Back in Time”   Huey Lewis and the News;  “Welcome to the Future”   by Brad Paisley;  “Let the Good Times Roll” by BB King;“Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest

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ABOUT DESIREE STENNETT, REPORTER WITH THE COMMERICAL APPEAL

Desiree Stennett is a growth and development reporter for the Commercial Appeal. She writes about commercial real estate, retail, new businesses and the Memphis economy.

www.TheCommercialAppeal.com

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ABOUT TOM KING, APPRAISER WITH BILL KING COMPANY

(901) 487-6989

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?

www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308

“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

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