HIGHLIGHTS FROM OUR PODCAST:
MARKET NEWS
KINDNESS KORNER SPOTLIGHT-from the Kindness Revolution
QUESTIONS ANSWERED BY MIKE REED:
1. How did you start the rental management part of Reed & Associates?
2. What type of organizations do you manage for ?
3. What does a person do if their house doesn’t sell?
4. Why should a person hire a rental management company and not do it on their own?
4a. Why should I Hire Reed & Associates to Manage My Rental Properties?
5. What should I do to get a Property Ready for a new tenant?
6. How should I market my property to find a new tenant?
7. How should I screen / select a new tenant for my rental property?
8. My Tenant Stops Paying Rent? How to Handle evictions
9. What does it cost to self-manage my rental home instead of hiring a property manager?
10. Should I Rent or Sell my Memphis home?
QUESTIONS ANSWERED BY LYNN MCDONALD:
1. What kind of coverage is recommended on a Landlord Policy?
2. What can you say about renter’s insurance?
QUESTIONS ANSWERED BY JO GARNER:
1. What is the current limit on number of financed properties for investors using
traditional financing?
*how to strategize getting double that number
* no limit if you are buying or refinancing your primary residence
2. Do you offer Renovation and repair loans for investors and owner occupants?
3. How do you help your clients get in today for little or nothing down?
REAL ESTATE TIP OF THE DAY
ANNOUNCEMENTS
_____________________________________________________________
Good morning, Memphis! Good morning across the country on iHeart Radio and to you on the
BOCI channel too! You’re on the Real Estate Mortgage Shoppe program. I’m your host, Jo
Garner, Mortgage Loan Officer with Evolve Bank and Trust. Today topic is “MANAGING
REAL ESTATE SOLUTIONS– BUYING, SELLING, LEASING, REFINANCING
& MORE.” If you have a real estate challenge,or a good real estate solution of your own
that you want to share, we REALLY DO want to hear from you. Join us around the coffee table
by calling (901) 535-WREC (901) 535-9732. Sitting here with me is a guy who knows a LOT
about real estate and has established himself well in the property management business. Mike
Reed, of Reed & Associates of TN, I’ve been calling on your for YEARS. Glad to finally have
you join us on the Real Estate Mortgage Shoppe program.
<Mike Reed introduces himself and talks about what his company does etc>
(Jo) Mike, what kind of trends are you seeing in the real estate management business right now?
<Mike talks about what he is sees trending in the real estate property management
business—>
(Jo) Here’s what’s trending with mortgage rates…rates yesterday managed a high jump when
the jobs report came out in the positive. It’s the highest they have jumped in one day since
back in mid 2013. Mortgage rates are tied to the yield on the 10-year treasury bonds. As the
10-year bond goes, so goes the mortgage rates as a general rule. The strong jobs number
raises concern from investors that the Federal Reserve will hike THEIR rate sooner than
originally anticipated. (Mortgage rates are NOT tied directly to the Fed rate BUT when the Fed
hikes their rates, one of the steps the Fed will take is to shrink their balance sheet—including
mortgage-backed securities, which WILL affect mortgage rates which can push rates up, up
and up. But, looking at the long view our rates yesterday landed still in generally low territory —
30YR FIXED – 3.875% to 4% conventional 30yr; FHA and Government 30 yr around
3.875 to 4.25% 15 yr conventional around 3.25% to 3.5%. Rates can vary depending on a
number of factors on your loan profile.
<Mike makes brief comments about rates today vs the Great Recission of the early
80’s>
(Jo) William Arthur Ward said, “Opportunities are like sunrises. If you wait too long, you miss them.”
Don’t miss the sunrise on your chance to do something positive with your life, your career, in your
relationships. A lot of us in the Mid-South had a chance to step off the spinning wheel this week with
the Winter Storm of March 2015. Today is March 7th, 2015 and there’s still snow on the ground. You
have an excuse to linger in front of the fireplace and reevaluate what is important to you. Make a
commitment to start doing one or two things every day, or maybe once a week that will take you
closer those things want in life. I don’t know about you, but I have found that just about anything I
want in life –even the people I care about—places I like to go –things I like to do—it costs some
money—a little or a lot. Money’s not everything but it sure helps. Let’s talk about your money, and
look at ways you can keep more of it. Call me right now on the air at (901) 535-WREC (901) 535-
9732 or let’s talk more directly later today at 901 482-0354 901 482-0354 or catch me on the blog
www.JoGarner.com
<Mike Reed talks about ways he has helped his clients get to keep more of their own money
and provide them a way to pursue the things that are important in THEIR lives—tells a story
about former client….?>
(Jo) My very experienced assistant, Susan Belew and I have had the joy of helping people find
solutions and pursue their dreams. We have seen several of our clients move from renting to buying
their first home. We recently helped a client structure terms on a mortgage to buy a house they really
wanted. They are now living where they want to live and comfortably within their budget. The sellers
on that deal happened to be our clients too. We also celebrated with the sellers who were investors
who had a long time ago made a plan to create wealth from buying houses to rent out and selling
some of them with a goal to have zero mortgages on the houses they kept. Our investor clients made
a plan a long time ago to reach for what they wanted and now they are enjoying the fruits of their
labor. If you or someone you know is thinking the road to wealth and an income stream is to own
real estate, please call me today. There are a number of proven strategies using smart debt
structures that can help you get the mortgages paid off faster freeing up even more money for you.
Call me and let’s talk about you specific situation. What do you want to accomplish? How much
money do you want free and clear each month and how fast do you need to get to that point? Let’s
explore some smart strategies using smart financing structures to make it happen. Call us on the air
at (901) 535-WREC (901) 535-9732 or you can call me directly later at (901) 482-0354 (901) 482-
0354 or connect with me on my blog www.JoGarner.com
(Jo) We’ve been talking about how to find real estate solutions buying property, selling property and
accumulating rental properties, but other ways to free up money or eliminate years off your mortgage
could be a simple refinance. You may think you rate is low enough, but if you are paying over 4.75%,
we can look at a number of options to perhaps save you a few hundred dollars per month, or we can
look at eliminating a few years off your mortgage, so you can enjoy NO MORTGAGE sooner.
Shortening the term on your loan can save you TENS of thousands of dollars in payments. Some of
our refinance products don’t even require an appraisal value—which saves you money and
headaches.
Mike Reed, we’re talking about “MANAGING REAL ESTATE SOLUTIONS– BUYING,
SELLING, LEASING, REFINANCING & MORE.” You’ve been in the real estate business
for several years. What are some solutions you offer YOUR clients? <Mike launches his topic >
(During the 2nd segment of the show, Lynn McDonald of Erin McDonald Insurance Agency
takes three minutes or so for our Kindness Korner when we honor a real estate professional
who has been exceptionally kind and giving to others and in the community. Lynn gives a
short explanation aboutr Ed Horrell of the Kindness Revolution.)
(Jo) It’s time for the Kindness Korner. Lynn McDonald of Erin McDonald Insurance Agency has joined
us around the coffee table. Lynn is an official representative of the Kindness Revolution and is going
to award a very deserving real estate professional the Spirit of Kindness Award today right here on
the show. “The Kindness Revolution™ is a national not-for-profit initiative headquartered in Memphis and
active in over 150 cities across the country. Their mission is to raise the awareness of values, such as
kindness, in leadership, customer service, schools, and communities. One of the ways they do this is to
recognize the kindness of local citizens, such as Amanda Lott, Realtor with Crye-Leike. “Amanda Lott
represents the values that we deem so important to our children and our communities and we would like to join
in this recognition” from Ed Horrell…Founder and President of The Kindness Revolution™.
Lynn McDonald of Erin McDonald Insurance A is our Kindness Korner sponsor. Lynn awards the honor to our
recipient and enumerates some of the acts of kindness our recipient has offered.
QUESTIONS ANSWERED BY MIKE REED:
1. How did you start the rental management part of Reed & Associates?
2. What type of organizations do you manage for ?
3. What does a person do if their house doesn’t sell?
4. Why should a person hire a rental management company and not do it on their own?
4a. Why should I Hire Reed & Associates to Manage My Rental Properties?
● Experienced
● Property Management Style
● Real Estate since 1992; Residential Property Management since 1997
● Investors: Local, National, around the world
● Portfolio size: 1 to 150
● Portfolio Based
● Smaller batch of properties per PM; more availability; more hands on with the owners
and tenants they work with
● Education / Technology
● MAAR, National Assoc of Realtors
● NARPM
● Education/Classes; Conferences
● Web based software; online owner portal; direct deposit for owner payments
5. What should I do to get a Property Ready for a new tenant?
RENT READY REPAIRS:
o Too much: costly, overdone for the neighbor, no additional ROI
o Too little: outdated, no appeal to a prospective tenant
Size, age, location/neighborhood, price, impact on ROI
Competition in the area/neighborhood
o Repair vs Replace
o Cosmetic vs Mechanical
o Do enough to be appealing to the tenant & protect/preserve the home
o Move quickly, make good decisions; every day not on the market no opportunity to
find a tenant & start collecting rent
6. How should I market my property to find a new tenant?
MARKETING:
o Yard Sign
Old school approach
1/3 to ½ of calls
Window sign: Weather, lawn service, neighbors
o Online
Good photos & description
Broadcast to as many sites as possible for maximum exposure
Mobile/tablet version
o Social media
Without Rent ready / good condition / curb appeal Marketing won’t matter
7. How should I screen / select a new tenant for my rental property?
SCREENING / RED FLAGS:
o Standard Screening Process
Credit report / background check
Income verification & landlord verification
Beware of Fair Housing – best to know your standards before pulling reports
o Red Flags
Repeat Bankruptcy filers, landlord judgments
Story for everything wrong on credit
“We’re Easy to Deal With!!” – usually not the case
Difficulties on the front end usually don’t improve over time
8. My Tenant Stops Paying Rent? How to Handle evictions
You’ve gone thru the whole process:
Vacant Rent Ready Priced Right
Marketing: Yard Sign, online/social media, referral network
Screening the application: screen & verify tenant info; look for red flags
NOW your tenant stops paying rent, what’s next??
o This is the basic procedure for Memphis/Shelby County, TN
o Contact the tenant: Letter, phone call, email, door knock
o Required by state law to give a notice to quit—unless waive in the lease
o File Forcible entry & detainer warrant – go through a legal process in the courts
File FED
Serve tenant with notice (process or sherriff)
Appear in court
10 day waiting period after court
File writ of possession, if tenant hasn’t vacated
45-60 day process
o Use an attorney
9. What does it cost to self-manage my rental home instead of hiring a property manager?
Weighing options; determining costs
Typically pay PM % of monthly rent to handle tasks on your behalf
Costs are not JUST financial
TIME
o Spare time or during the work day
o Showing a vacant property
o Repairs / maintenance calls
Busted pipes, middle of the night
Unexpected / inconvenient
o Chasing rent
o Accounting
EMOTION
o Hard to quantify
o Emergencies
o Unpaid rent
o Dealing with neighbors & complaints from neighborhood assoc.
RISK
o Fair housing
o Liability
o Properly handling an eviction
FINANCIAL
o Dealing with vendors
o Unpaid rent
Owners costing themselves $$ due to unpaid / slow rent due to tenant stories vs
having S.O.P. for rent collection & professional PM with a policy to follow
o Repairs – too much or too little
o Pricing – priced too low – lower ROI; overpriced – sits vacant too long
o Time cost? What is your time worth?
10. Should I Rent or Sell my Memphis home?
What are your goals / future plans / motives for this home?
May want to move back into in the future?
Comps to determine value
o Do you have equity or can you sell & break even?
o If underwater, can you bring cash to closing, or do you want to consider a short sale?
Don’t want to be in the Rental / Landlord Business?? Look to sell
If none of these options are what you want or your goal is to keep the property, renting it out
may be a good option for you
Long term vs short term
o Will determine what type of repairs / upgrades / systems you may want to consider
QUESTIONS ANSWERED BY LYNN MCDONALD:
3. What kind of coverage is recommended on a Landlord Policy?
4. What can you say about renter’s insurance?
5.
QUESTIONS ANSWERED BY JO GARNER:
4. What is the current limit on number of financed properties for investors using
traditional financing?
*how to strategize getting double that number
* no limit if you are buying or refinancing your primary residence
5. Do you offer Renovation and repair loans for investors and owner occupants?
6. How do you help your clients get in today for little or nothing down?
________________________________________________________________________________
REAL ESTATE TIP OF THE WEEK:
______________________________________________________________________________
Jo’s announcements : Jo’s announcements:
Talk Shoppe offers free education and networking to anyone interested in real estate or in business.
Coming up Wednesday March 11th, 2015 join us for the Real Estate Panel of Experts talking about
“How To Enjoy A Smooth Real Estate Process” with a panel of real estate professionals who know how
to get around pitfalls in the process, saving you time and money. Talk Shoppe events are free now at
University of Phoenix 65 Germantown Court Memphis-in the office center across from the Ag-Center off
Germantown Parkway 9A to 10A Wednesday. For more information go to www.TalkShoppe.com
To hear today’s podcast of the Real Estate Mortgage Shoppe and others, go to
www.JoGarner.com
( “IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY. WE’VE ENJOYED HANGING OUT
WITH YOU. WE’LL SEE YOU BACK NEXT SATURDAY.”)
Transitional Music: “Shake It Off” Taylor Swift; King Of The Road –Trailers For Sale Or Rent” by Roger Miller ; “Big Time”
Peter Gabriel
Kindness Korner awards Spirit of Kindness Award from Kindness Revolution for real estate professional “What a
Wonderful World” Louis Armstrong
ABOUT MIKE REED:
Reed & Associates of Tennessee, LLC is a Christian based real estate firm that was established in 1992. Our principle broker and
owner, Mike Reed has over 30 years real estate experience and has owned over 200+ rental properties. He started his own real estate
company in 1992 and in 1997 he started a property management company which now manages approximately 600 properties for 85+
investors locally, nationally, and internationally. Reed and Associates is a full service real estate company that offers services in:
✓ Leasing – We offer a lease option to purchase and rental program for residents
✓ Property Management – We manage properties for real estate investors, builders, and homeowners
✓ Real Estate Investor Sales – We offer Turn-Key Cash Flow Properties for investors who are looking to add rental
properties to their investment portfolio
We manage homes in Memphis, TN, North Mississippi, and Nashville, TN.
Our mission is to be recognized for our efficiency through our services for all of our clients. This however is not our purpose in life.
We are Christians who believe in the burial and resurrection of our Lord Jesus Christ, who is the perfect Son of God. The only way to
spend eternity with God the Father is through his only son Jesus Christ. It is our desire for everyone to become a Christian. This is a
personal invitation to you to accept Jesus Christ into your Life as Lord and Savior.
Reed & Associates of TN, LLC 269 Germantown Bend Cv, Cordova, TN 38018
www.MyReedHome.com 901-758-1133
Mike Reed – Broker/Owner mike@myreedhome.com 901-413-2868 cell
ABOUT LYNN MCDONALD: (Official Representative from the Kindness Revolution
awarding Spirit of Kindness Award to a deserving real estate professional)
I have worked in insurance for over 22 years and very much enjoy helping people manage risk through proper
insurance coverage. We have a large agency and are well staffed to take care of our clients need.
Specialties:Working with Landlords and Investors
Experience
Erin McDonald Insurance Agency
Top Sales Producer
(901) 849-7101
___________________________________________________________________
ABOUT JO GARNER:
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 @jogarner
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 20 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 20 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 She was also the editor of Power Shoppe, a free weekly e-zine designed
for real estate professionals and others indirectly connected to the real estate industry and currently publishes
on her blog www.JoGarner.com .
For real estate financing solutions, plug into the Real Estate Mortgage Shoppe program. You can find
mortgage rates, FHA Streamline refinance with no out-of-pocket costs, refinancing options, home
purchase loan programs, answers and real estate, money-saving tips and more.