Today on Real Estate Mortgage Shoppe, we are sharing with you some secrets from the book The Millionaire Next Door and how these first-generation millionaires became some of the biggest wealth holders in the country starting from square one. We will cover some home buying strategies of people who have been able to buy real estate with the smallest out of pocket investment while keeping their other money working for them in other investments. Pat and I want to share with you some benefits of the updated Home Ready 3% down program, Tennessee Housing Development Agency, City of Memphis Down Payment Assistance, VA, USDA, Combination Loans and Substitution of Collateral, special 100% Physicians Loan.
Let’s talk about YOUR plans for building your wealth empire! Contact me at www.JoGarner.com. Email me at jo@192.232.195.219 or call and let’s talk personally (901)482-0354. If you prefer to start by completing a loan application online, go to https://www.jogarner.evolve.mortgage.com. Subscribe at www.JoGarner.com so we can stay connected!
To Your Success!
Jo Garner, Mortgage Loan Officer and Radio Talk Show Host Real Estate Mortgage Shoppe
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Good morning, Memphis! Welcome to our 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 “HOW TO BUY A HOME WITH NOTHING DOWN –KEEP YOUR MONEY IN YOUR POCKET & NOT LEFT ON THE CLOSING TABLE.” Thank you to Joe Rojas, title company resource for sponsoring Real Estate Mortgage Shoppe today. If you are looking for a title company to close YOUR real estate loan call Joe at (901) 289-5821.
If you have a question or comment and you’re on Twitter, make them to #JoGarner or call me directly off the show at (901) 482-0354. If you have a story or scenario to share, you can call us while we are live at (901) 535-9732 or outside the Memphis area (800) 474-9732 Today November 26th, 2016
Today we are sharing with you some secrets of the Millionaire Next Door and how they became some of the biggest wealth holders in the country starting from square one. We will cover some home buying strategies of people who have been able to buy real estate with the smallest out of pocket investment while keeping their other money working for them in other investments. Pat and I want to share with you some benefits of the updated Home Ready 3% down program, Tennessee Housing Development Agency, City of Memphis Down Payment Assistance, VA, USDA, Combination Loans and Substitution of Collateral, special 100% Physicians Loan.
Pat Goldstein, with Crye-Leike Realtors, is in the studio to talk with us. Pat has accumulated many awards over her over 30 years in the real estate business. She is a Life Member of the Multi-Million Dollar Club and was awarded Memphis Area Association Associate of the Year in 2005. <Pat Goldstein introduces herself and talks about what she does>
(Jo) This week was a short week—too short. I took some time like a lot of you to enjoy Thanksgiving with friends and family . It was a short week for bond traders too so the mortgage market didn’t move much, at least not much compared to the pole vault rates made right after the election. Mortgage fixed rates are still good though—at least for now. The 30 year fixed rate came in around 4.125% to $4.25% but can vary depending on several factors including credit scores. The 15 year fixed rate came in around the mid 3’s. Here is a strong word to the wise: Janet Yellen, the Federal Reserve Chairman announced last week that, based on proposals from the new White House initiatives for 2017, we very likely could see some inflation and the Fed plans to raise their overnight rate multiple times during the year if necessary. The Fed Rate doesn’t affect directly the mortgage rates but it DOES tend to cause Home Equity variable rates and various other adjustable rate programs to increase their rates when the Fed rate goes up. 30YR FIXED – 4.125%-4.25%; 15 YEAR FIXED – 3.375%
<Pat COMMENTS >
(Jo) We’re talking about HOW TO BUY A HOME WITH NOTHING DOWN –KEEPING YOUR MONEY IN YOUR POCKET & NOT LEFT ON THE CLOSING TABLE. Back in the 1990’s Thomas Stanley and William Danko, both PhD’s, wrote a book entitled The Millionaire Next Door. After extensive research over a period of over 20 years of how people become wealthy, they made an odd discovery. Wealth is not the same as income. Wealth is what you accumulate, not what you spend. Here is an even odder discovery—many of the people living in upscale neighborhoods are not wealthy. Many people with a great deal of wealth do not live in upscale neighborhoods. The biggest number of wealthy people Drs. Stanley and Danko discovered 1. Live well below their means.2. They allocate their time, energy, and money efficiently , in ways conducive to building wealth. 3. They believe that financial independence is more important than displaying high social status. 4. Their parents did not provide economic outpatient care. 5. Their adult children are economically self-sufficient. 6. They are proficient in targeting market opportunities. 7. They chose the right occupation. The book The Millionaire Next Door proceeds to lay out some blueprints for how everyday people can become millionaires. Buying real estate has been the way to wealth for many first-generation millionaires, but it is buying real estate with more than one profitable exit strategies like waiting for equity to build in the property either by paying down the mortgage or waiting on the market prices to go up on the property before they sell. While living in the property or renting it to tenants, make your other money work for you by investing it into other money-making tools like stocks, bonds, successful businesses and the list goes on.
<Pat Goldstein makes comments here or tells a story>
(Jo) Some of the most successful real estate investors I have worked with over the years have put the minimum down while keeping their other money actively making them money. They have bought real estate properties at a price and terms that allowed them to get a positive cash flow each month from day one. They continued to invest and keep their other savings invested in various areas building their wealth. In many parts of the country, including in the Memphis Metropolitan Statistical Area, it is very likely that you can buy a home that would rent for more than the small house payment you would make each month. Later in this show, I want to show you some scenarios where some of my clients buying their primary residence have been able to keep their payments low enough to allow them to save each month and continue to invest to build their wealth. If you want to take a spin on my calculator on some real estate buying plans of your own, call me today while we are live at (901) 535-9735. I want to talk with you personally. But you have to talk with me personally so I can work with you. You can connect with me at www.JoGarner.com or call me directly at (901) 482-0354. MAKE YOUR PLAN, LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY!
Pat, what have your clients experienced with the zero to little down payment loan programs? <Pat launches her topic>
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2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. Jimmy Ogle offers free historic walking tours downtown in the spring and fall. For information about Jimmy Ogle, go to www.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 . 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 # 95 11/25/16
[Trivia Answer] W.C. Handy Home & Museum
TRIVIA QUESTION: I was the residence for one of Memphis’ most famous musical names. Who am I?
[TRIVIA HINTS] Hint: My original location was at 659 Jeannette Place in Soulsville USA.
Hint: My occupant wrote a song named “Mr. Crump” which later became a famous song under another title.
Hint: I am open now for tourist to visit and learn more about my time in Memphis and my impact on the world.
Final Hint: I was moved in 1983 to Beale Street by the City of Memphis.
Answer: W.C. Handy Home & Museum. William Christopher Handy known as the “Father of the Blues” was born in 1873 in Florence, Alabama in a log cabin built by his grandfather. Growing up, he received lessons on the cornet in the local barber shop. Handy was teaching school by age nineteen, but left for a high paying job at a factory in Bessemer, Alabama. Touring and traveling, he heard and recalled music made by rural people. He particularly recalled the strange sounding music he heard a man playing at a train station in Tutwiler, Mississippi: The Blues. Handy was a religious man whose influences in his musical style were found in the church music he sang and played as a youth. He said that his inspiration came from “the music of every songbird and all the symphonies of their unpremeditated art.”
In 1909 Handy and his band moved to Memphis and established their presence on Beale Street. “The Memphis Blues” was written in 1909 and was the first blues ballad Handy ever wrote, and arguably the first blues ballad in history. After publishing the song himself in 1912, “The Memphis Blues” became popular all over the United States. It was originally entitled “Mr. Crump” as it was a campaign tune written for mayoral candidate Edward Crump. Handy continued to write music based on what he heard in folk song. “Memphis Blues” was followed by “St. Louis Blues” which was written in 1914 and “Beale Street Blues” which was written in 1916. Handy moved to New York in 1917 where he wrote five books and continued with his music until his death in 1958. For preservation sake, the “shotgun style” home was moved to a more prominent location at Fourth & Beale, and is now operated by Heritage Tours of Memphis (wchandymemphis.org or heritagetoursofmemphis.org).
Station on the site of the old Calhoun Street Station.
Jimmy Ogle gives free outdoor walking tours on the sidewalks and parks in Downtown Memphis during the Spring and Autumn of each year, with the next being the Judge D’Army Bailey County Courthouse Tour (indoors): one Thursday each month at 12:00 noon – the next being Thursday, December 15. Go to jimmyogle.com for more information.
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QUESTIONS ANSWERED BY PAT GOLDSTEIN:
- What have been some experiences from your clients using the zero down or low down payment programs?
- What are some rules you use when writing the home purchase contract for your clients to avoid costly mistakes for them?
- Get a strong preapproval letter to give you an advantage over your competition when there are other offers competing against yours.
- Note from Pat Goldstein Like Blake, there are a lot of people who think they can’t qualify for a loan, so they don’t try. Some of those people can actually qualify now. Others can get their credit cleaned up quickly with the help of a good loan officer, like Jo Garner. Call today to get your mortgage preapproval, or a workout plan to repair any credit issues. Also call me, PAT GOLDSTEIN at 901-606-2000 to go over the Homebuying process. You can go from being fearful to excited just by having a knowledgeable agent teach you the steps from renter to homeowner. Again, you can reach me at 901-606-2000.
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QUESTIONS ANSWERED BY JO GARNER:
- What are some of the most popular down payment programs?
- 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 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 besides 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/
- As a mortgage officer, how do you decide which down payment assistance program is best for your client?
Once my mortgage client and I have completed the loan application, I know a lot about her and her maximum comfort level on a mortgage payment and down payment amount. I know whether she has been on title to real estate in the past 3 years. She has given me the information I need to know about her income and assets. My assistant and I compare 2 or three or more programs quickly to assess what will give that particular customer the lowest payment, the lowest costs and which product would allow for them to pay less on private mortgage insurance over time. Basically, we find one or two programs that really work for that customer and let the customer decide what program feels right to them.
- Where do you find money for your mortgage clients to use for down payment to prevent them from having to get money out-of-pocket?
If you want to know more, Google “Down Payment Assistance” and the name of YOUR state and you should hit the jackpot. 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, Fire Fighters, 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
- Treasure hunting for down payment funds. Using OPM-Other People’s Money
- 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.
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REAL ESTATE TIP OF THE WEEK (Pat Goldstein shared a real estate related money-saving or time-saving tip): Get strong preapproval to give you an edge when making an offer on a home with competing bidders.
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 the University of Phoenix 65 Germantown Center 1st floor Cordova, TN. This Wednesday, November 30th, 2016 Talk Shoppe presents: “Fighting Blight in Memphis.” With Steve Barlow, President of Neighborhood Preservation, Inc. steve@npimemphis.org and Sheila@blightauthoritymemphis.com. Talk Shoppe events are free thanks to supporters like Beverly Borwick, custom jewelry, and accessory designer. She can create unique pieces for you or someone you love. www.beverlyborwickdesigns.com
Talk Shoppe’s charity of choice is funding Swim Scholarships through the YMCA teaching children and young people how to swim and how to save a life. In a couple of weeks, Talk Shoppe will have a Charity Auction of purses with gift cards of varying values from $25 to $100. To get promotion for your company, donate a gift card early by contacting Lynn McDonald of Erin McDonald Insurance Agency (901) 849-7101.
- Drive safe, hug your children and your family during this Thanksgiving weekend.
- Thank you to Joe Rojas, your solution for getting the right real estate title company to close your real estate transaction. (901) 289-5821
- 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.
- FOR THIS PODCAST OF REAL ESTATE MORTGAGE SHOPPE AND MORE, GO TO JOGARNER.COM
- Real Estate Mortgage Shoppe reminds you that MAKE YOUR PLAN, LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY!
QUOTE CORNER:
An old proverb from the older generation—it works for this generation too—“Use it up, wear it out. Make do or do without.”
Charles Jaffe: “It’s not your salary that makes you rich, it’s your spending habits.”
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REJOINERS:
- Katie Gilliland of BackupRX.com Hernando, MS. Keeping your important data backed up. Your solution for business continuity.
- Donna Bellinger, Revenue Accelerator, & Business Development Author, Speaker & Trainer. Creator of: “Revenue UP: From Sluggish to Sensational in Sales”. DonnaSmithBellinger.com
- Gwen Christensen, BuildersFloorsandInteriors.com Get your flooring job installed for less than the big box stores charge you to do it.
Transitional Music: “I Need A Dollar” by Aloe Blac; “I Might Be Cheap” Rik Roberts, “Money, Money, Money” Abba and “Memphis” by Johnny Rivers for Look Back Memphis Trivia Contest
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CALLER : ELLIS RANKIN, experienced realtor specializing in first-time homebuyers and veterans. Realty One Group First National, Memphis, TN (901) 255-2745 Ellis’ cell phone (901) 406-3141
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ABOUT PAT GOLDSTEIN, REALTOR CRYE-LEIKE, INC· (901) 606-2000
2006 MAAR Realtor Associate of the Year 2005 MAAR Presidential Award Recipient TAR Leadership Graduate Member National Association of Realtors
- Life Member of the Multi-Million Dollar Club. Toastmasters Division Governor CBS (Certified Builder Specialist)
- CRA (Certified Relocation Associate)
- CRS (Certified Residential Specialist)
- GREEN (Green Agent)
- GRI (Graduate, Realtors Institute)
- MMDC (Crye-Leike Multi-Million Dollar Club)
- SRES (Seniors Real Estate Specialist)
- SRS (Seller Representative Specialist)
- Vice-President (Circle of Excellence)
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ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
www.JoGarner.com (901) 482 0354 jo@192.232.195.219 twitter @jogarner
Jo describes her job description: “As a mortgage loan officer, my job is to give my client the benefits they want from their financing terms– listening to my client and determine what’s of the most value to THEM– What is their comfort level on a house payment, how much are they comfortable paying down, what type of financing do they need to get the house they 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. Whatever their personal priorities are, my job is to put together a mortgage with comfortable terms that will help them achieve their goals.”
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