To hear podcast go to : www.mortgageloansblog.com (Podcasts & Media)
Good morning, Memphis! And it IS a good morning, because there is an awesome opportunity just waiting for you today. You are on the Real Estate Mortgage Shoppe with me, Jo Garner, mortgage officer with Evolve Bank and Trust. Co-hosting our time together today are Don and Holly Swogger of Homevestors.
Our topic today is “10 Ways To Get Over 100% Of Your Rents & Profiting On Your Mortgage” But we want to talk with you about ANYTHING regarding real estate you would like to discuss. Do you need a solution to a rental property challenge? Are you grappling with a question about your mortgage? Your credit? Call us at 901 535-WREC. That number to be on the air with us is 901 535-9732.
Don and Holly, its great to have you back on the Real Estate Mortgage Shoppe program. You have several years experience in the real estate business, buying, selling and renovating and managing real estate property. Some of you may remember the billboards around town that said, “We Buy Ugly Houses.” Don and Holly, have made their business buying ugly houses but nice house s too. Tell us a little about yourselves and what you do
Holly is the president of our local Memphis Investors Group and brings to our show our featured guest, national speaker and best-selling author of the book, Landlording On AutoPilot. Mike is joining us by hotline. Mike, we are looking forward to having you in Memphis later this week at the Memphis Investors Group. Tell us a little about who you are and what you do.
The ongoing news is still that our Federal Reserve is buying $40 billion dollars worth of mortgage bonds per month, keeping our rates lower than they have been in modern history. There’s still little chance of them spiking any time soon. But if you have thought about refinancing your home or purchasing one, don’t sit on the fence. After elections the rate environment can change drastically.
This week the 30-year fixed-rate mortgage fell to 3.52 percent from 3.55 percent. The 15-year fixed-rate mortgage fell to 2.84 percent from 2.88 percent. The 5/1 adjustable-rate mortgage fell to 2.67 percent from 2.68 percent. These statistics were published before yesterday when the jobs report sent pricing on mortgages up by about .25% on the fees.
As Janis Joplin said in the 60’s, “You got to get it while you can.” If the home purchase deal or home refinance deal works for you today, do it today. Let’s talk! Let’s look at the options YOU have for improving the terms on YOUR loan. My very capable assistant, Susan Belew and I are ready to crunch the numbers for YOU. To reach me off the air, the number is (901) 482 0354. The number again for talking OFF the air is 901 482 0354.
(Note to Jo in case it comes up: more quotes on Opportunity) “Make hay while the sun shineth” John Clarke the 17th century)
Don’t forget that there are mortgage programs out there like the special Home Affordable Refinance Program, otherwise known as HARP, that will allow many qualified homeowners to refinance to these low rates WITHOUT AN APPRAISAL. If you or someone you know is underwater on their home–they owe more than the current value of the house, this program and some other government streamline programs out there could be the answer you’re looking for.
As some of you may have read in the article in the Thursday edition of the Memphis Commercial Appeal , Evolve Bank and Trust is the fastest growing bank in the Memphis area. Only about half of the loans we are closing right now are refinances. That means there are plenty of people taking Janis Joplin’s advice to “get it while you can” and they’re out there BUYING REAL ESTATE!
Memphis is a gold mine for real estate investment-whether you are buying for investment or buying to live there. Real estate prices are relatively stable in the Memphis are as opposed to other metropolitan areas. We have good programs for down payment assistance and low down payment programs of you are buying your primary residence. Its easier to get a positive cash flow on rental property here too. Call me. Let’s talk about what is available to YOU. My direct number off the air is (901) 482 0354. The number to call to join us on the air right now is (901) 535-WREC. That is 901 535-9732.
Today we can talk about ANYTHING about real estate you want to discuss. To get us started we are talking about “10 Ways To Get Over 100% Of Your Rent & Profiting On Your Mortgage.” Holly Swogger, you and Don own the franchise Homevestors and have a lot of experience with landlording. You have also invited Mike Butler to our coffee table. Questions for Holly and Don Swogger to answer:
1. You have the only Homevestors franchise in the Memphis area. Do you have room for more Homevestor franchises?
2. What are the advantages of owning a Homevestors franchise?
Questions for Mike Butler to answer:
1. What made you want to get into real estate as a career?
2. What are ways you can get 100% of your Rent from Tenants?
3. Tell us in a little more detail about some of the ways you can get over 100% of your rent .
Questions for Jo Garner to answer:
1. What type financing do you have available for real estate investors? Fannie Mae will allow up to 10 financed properties with restrictions:
Investors owning 1 to 4 financing properties can (a) cash out up to 75% Loan-to-Value & Combined Loan-to-Value (b) Purchase or Rate Term Refinance up to 80% Loan-to-Value & 85% Combined-Loan-to-Value.
Investors owning 5 to 10 financed properties must (a) have a minimum credit score of 720 (b) Limited cash out up to 70% Loan-to Value (c) Purchase & Rate Term maximum 75% Loan-to-Value & Combined-Loan -to-Value (d) 2-unit properties up to 4-unit properties max purchase & rate-term refinance 70% Loan -to-Value & Combined Loan-to-Value. (e) no mortgage late payments showing over 30 days in the last 12 months
2. Where can you get money for down payments?
Borrower’s Forgotten Assets: Whole life insurance policies or annuities may have a cash value that can be borrowed. Many times the borrower does not realize the insurance she purchased years ago has a cash value that can be borrowed to pay the move-in costs.
Loans secured on certificates of deposit, stocks and bonds, and durable assets such as cars can be used as acceptable sources of funds to close as long as the loan is secured on an asset owned by the borrower. The payment must be added into the debt-to-income ratios for qualifying purposes
IRAs, 401(k)s and Retirement Funds. There can be heavy financial penalties for pulling money from these sources. However, many companies allow the homebuyer to borrow against these assets with no penalty. The repayment terms may be calculated in the borrower’s debt-to-income ratio.
Sale or Cash Out Refinance of Existing Real Estate Property can generate needed funds to close on another property. Lenders will require the HUD 1 Settlement Statement or sufficient proof of the source of funds.
Tax Refunds can provide a surprising source of closing funds.
If you are buying a PRIMARY RESIDENCE, you can get third parties to help you such as : Sellers can pay up to 3% of the sales price toward the buyer’s costs if the borrower is getting a conventional loan above 90% loan-to-value. If the loan-to-value is 90%, the seller is allowed to pay costs up to 6% of the sales price or value whichever is less.
Investor loans allow the sellers to pay no more than 2% no matter how much money the investor pays down.
Charitable Organizations and government agencies such as Tennessee Housing Development Agency have programs that provide down payment assistance to borrowers.
Lenders are motivated to close the transaction and sometimes can bump up the interest rate slightly in order to use “premium pricing” to pay the borrower’s prepaid taxes and insurance or some of the closing costs. In most cases the rate is increased .25% and the difference in the monthly payment is minimal.
The biggest difference is the investor must pay down between 20% of the price of the house and 30%. The person buying to occupy the home would only be required to pay around 3 to 3.5%% and usually not more than 10%.
Also, for investors, the seller is only allowed to pay 2% of the home price toward the buyer’s closing costs. Whereas the seller can pay 3 to 6% of the price toward the buyers closing cost if the buyer is purchasing a home where he intends to live.
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by 9:45 am Real Estate Tip of the Week Shared Don Swogger
Talk Shoppe offers free networking and education to anyone interested in real estate or business. The Talk Shoppe meetings are every Wednesday 9am to 10am at the Better Business Bureau. This coming Wednesday Andre Fowlkes of Launch Memphis will be sharing on the topic “Is Your Business Model Hitting Your Target Market?” For more information check out www.TalkShoppe.NET.
Next Saturday, right here on the Real Estate Mortgage Shoppe program Tom King, a real estate appraiser and Shelby County Property Tax Appeal Expert with King and Vaughan Consulting, will be talking with you about how to reduce your real estate property taxes. For past podcasts of our show, go to www.mortgageloansblog.com
Memphis Investor Group will be meeting at the Hilton at 240 and Ridgeway Center Thursday night 7:00pm and the speaker will be best-selling author Mike Butler on “10 Ways To Get Over 100% Of Your Rent” For more information about Memphis Investor Group go to www.memphisinvestorgroup.com
Jo Garner, Mortgage Officer with Evolve Bank and Trust 6070 Poplar Ave Ste 250 Memphis, TN. 38120 (901) 482 0354 www.MoneyShoppe.NET.
Don and Holly Swogger, franchise owner Homevestors. For more information on how to open a Homevestors franchise, contact the Swoggers at (901)757-9883 don.swogger@homevestors.com www.memphis.homevestors.com
Mike Butler, national speaker and best-selling author of Landlording On AutoPilot. www.AskMikeButler.com
Lynn McDonald, Allstate Insurance Memphis, TN 901 849 7101
Duane McCrory, Top Quality Service (Heating and Air) Memphis, TN 901 644 3303
If you want get some tips on how to get 100% of your rent income, Mike Butler shares it on the Real Estate Mortgage Shoppe program along with more information from Don and Holly Swogger, Homevestors and Jo Garner, mortgage officer with Evolve Bank & Trust.