LAND, LAWYERS AND OTHER FINANCING FACTORS 1-25-14
Highlights from the podcasts:
QUESTIONS FOR ATTORNEY RON COHEN TO ANSWER:
- 1. How do these high rises that are built over railroad tracks accomplish this when the railroads own the air rights over their tracks?
- 2. When and how would you sell property without mineral rights attached?
- 3. For instance, if you own a condo down by the river, what can you do to prevent someone from building a structure that obscures your view of the river?
QUESTIONS ANSWERED BY JO GARNER:
- 1. How is the best way to get vacant land financed?
- 2. What are some smart things a prospective borrower can do to prepare for the loan application
Look Back Memphis Trivia Contest
Top 3 Lawyer Quips
REAL ESTATE TIP OF THE WEEK (Readers are Leaders)
Good morning to you Memphis! Hello to IHEART listeners around the country. You’re on the Real Estate Mortgage Shoppe program. I’m your host, Jo Garner, mortgage professional with Evolve Bank and Trust. Our co-host today is Attorney Ron Cohen, co-owner of Premium Title Group.
With Ron today is Jenett Rochester, the Memphis manager of Premium Title Group.
Our topic today is “Land, Lawyers & Financing Factors” but we’ll talk about whatever you want to discuss about your real estate, your financing, your credit, your neighbor –just call us on the air at 901 535-WREC. The number to join us around the coffee table is (901) 535 9732.
- If you spend any time listening to the news you know the economic forecasts have some points to be debated. For some of our regular listeners, you know we have the coveted Magic Binoculars up here with us. If you look through one end of the Magic Binoculars, you can see back into the murky mists of the past, but turn it around and you can get a foggy glimpse of the future. Here’s what I believe we will see coming for 2014—30 year fixed mortgage rates to go up in the 5’s. Value increases in the double digits on homes across the country will slow down but sales of these properties will increase as buyers try to get locked in before rates hike. In fact, I recently got a tweet from realtor Jennifer Carstenson saying, “From Oakland, Calif., to Memphis, Tenn., these major metro areas are expected to see the biggest increase in home prices this year, according to CoreLogic Case-Shiller’s latest home price forecast.” But rates didn’t go up this week. They drifted down because investors were hitting the exit doors on heavy risk assets and harboring their money in the safety of bonds –which are used to hedge mortgage rates. When money is poured into the bond market, mortgage rates tend to go down in response. Yesterday the market closed with conventional 30 year fixed rates around 4.5%, FHA/VA – 4.25% fixed rates and the 15 year fixed rates coming in around 3.5%. You can get lower rates though. These are based on no points.
There are more home purchases taking place right now with the race to get locked into the low rate/low payment scenario for the long term while it is still available –especially for people currently renting and those wanting to buy the big dream home or downsize and simplify. Whatever you’re doing its better to enjoy the lower payments and the good feeling of knowing you did it before it was too late. Susan Belew, is my very capable assistant. She and I would like very much to talk with you, find out what you want to achieve this year in real estate. We can present some different financing scenarios for you to see which fits you the best. Our direct number is 901 482 0354. Our number again is 901 482 0354 or catch us on the blog www.mortgageloansblog.com
We just closed a loan this week for a couple in their 30’s with children who jumped at the chance to buy a bigger house for everyone to enjoy and get a payment lower than the one they were paying on the smaller house. One reason they put off doing this earlier is because they knew the value on the smaller house hadn’t gone up much and they weren’t going to get enough for selling that house to have a down payment on the new house. The missing puzzle piece was the USDA Rural Housing 100% loan program they used to buy the new house. Then they didn’t NEED a down payment because the seller paid their other cost. The one stipulation—this couple did have to sell their other house first or on the same day they closed on the new house so they would not own more than 1 house at a time per the program rules. It was nothing down–They did not even have to bring a check to the closing table. After this couple closed on their new home, Lynn McDonald, their insurance agent and I went to Starbucks to celebrate their bragging rights on the deal. It was fun getting to be a part of their success story!
And we’ve enjoyed a NUMBER of success stories with customers closing with Ron and Jenett and we can close loans on properties in several different states with you guys
If you have a real estate financing scenario you’d like to explore or a question about your real estate financing or a house you own or want to own, give us a call on the air at (901) 535 WREC. That number again is (901) 535 9732.
Our general topic today is “Land, Lawyers & Financing Factors.” Ron, you and I were discussing air and mineral rights on property. Not many people know how to “punch a hole in the sky” buying air rights from adjacent properties like Donald Trump did when he built the Trump World Tower, which soars 72 stories above the United Nations Plaza. The project met the letter of the law.How can regular homeowners make smart decisions using Air Rights and Mineral Rights on their own land?
LOOK BACK MEMPHIS TRIVIA CONTEST 1-25-14
Sponsored by Mike and Kay Geller of Doc Popcorn- Doc Popcorn is all natural, and guaranteed to put a smile on your face. Contact Kay or Mike Geller at 901-230-8406 for the perfect Super Bowl snack or any occasion munchies. The POPrietors of DocPopcorn have donated a $25 dollar gift card to Dazzle, the accessory story for women in Germantown across from Methodist Hospital.
Let’s look back…The first railroad to Shelby County was the Memphis & Ohio Railroad, stretching from Memphis to Paris, Tennessee in 1856. In 1872, the Louisville & Nashville, or L&N Railroad, bought the Memphis & Ohio Railroad and sponsored a contest to rename the community near Bond’s Station depot. In the late 1960’s down at the railroad station in this community, the younger guys hung out at night and laughed and told stories at what was called “the benches” along with an old man in a recliner they nicknamed “Mayor.” What is the name of this community in Shelby County?
Answer To Trivia Contest : “ELLENDALE,” TN 38029 “Ellendale” was chosen as a play-on-words of the abbreviation L&N.
Ellendale appears on the United States Geological Survey map, bordered on the north by the community of Brunswick, on the west by the neighborhood of Raleigh on the south by the city of Bartlett, and on the east by the city of Lakeland.
QUESTIONS FOR ATTORNEY RON COHEN TO ANSWER:
- 4. How do these high rises that are built over railroad tracks accomplish this when the railroads own the air rights over their tracks?
- 5. When and how would you sell property without mineral rights attached?
- 6. For instance, if you own a condo down by the river, what can you do to prevent someone from building a structure that obscures your view of the river?
QUESTIONS ANSWERED BY JO GARNER:
- 3. How is the best way to get vacant land financed?
- Primary residence to be built starting within the year
- Business to be built on the land
- Land to be built on later but not for over a year
n Evolve Bank can look at lending on a temporary construction loan that can be taken out in draws as the house is being built and then use a permanent loan from the mortgage company to pay off the temporary construction loan as soon as the house construction is completed.
n Evolve has a Small Business Lending department and this may be the place you want to go first to see about getting a loan for your business to build on the vacant lot site.
n If no properties are being built on the vacant land within the year, it is a little tougher to get the financing unless you secure a bank loan on a different property or secure it on stocks and bonds and then you may want to talk to the local bank where the property is located.
n
- 4. What are some smart things a prospective borrower can do to prepare for the loan application;
Take a look at your budget to determine your personal comfort level on payments and down payment before you talk to a loan officer. What is comfortable for you PERSONALLY is what is important no matter what the loan program allows.
Have all pages of your last 2 years tax returns ready to give to the loan officer. If you show a loss on a side business or unreimbursed employee expenses, this will take away from the income you show in other areas
Have all pages of your last 2 months bank statements ready to give to the loan officer. If you have large deposits showing on any of these statements other than payroll, you might as well know you will need to show a paper trail to verify
REAL ESTATE TIP OF THE WEEK (Readers Are Leaders)
Jo has one announcement to make:
Talk Shoppe offers free education and networking to anyone interested in real estate or business. This Wednesday 9A -10A at DeVry University 6401 Poplar Ave 6th floor, Talk Shoppe will be presenting “The Mastermind Principle: from the book Think And Grow Rich by Napoleon Hill” The cost is free and you can bring guests. For more information about Talk Shoppe go to www.TalkShoppe.BIZ If you are interested in continuing your education with DeVry University, you can do it online or in a local classroom. www.devry.edu
For our podcasts for the Real Estate Mortgage Shoppe program, go to www.mortgageloansblog.
Top 5 Lawyer Quips (to the tune of Perry Mason theme)
Transition Songs: “Theme Song From Law and Order” ; “Law School” by Chocolate Ghost House (parody on song “Payphone” by Maroon 5); “Dragons” a Minecraft parody of “Radioactive” by Imagine Dragons; “Memphis” by Johnny Rivers; “Theme From Perry Mason show”
Attorney Ron Cohen;
Of Counsel: Kusper & Raucci, Chartered
33 N. Dearborn Street
Suite 1530
Chicago, Illinois 60602
312-332-5000
312-346-1145 (direct)
312-332-4663 (facsimile)
: Interests in Land-Are You Really Interested?
Land includes the ground, trees, buildings everything up to the moon and everything down to the center of the earth. Wanna take a journey. What about the minerals, I promised my wife a new diamond ring (is a diamond really a mineral).
You own the minerals unless of course you sold or leased the mineral rights.
How about the oil, I’m tired of paying these high prices for gas. You own the oil and the gas too.
Just so happens I have a little piece of property downtown and some high rise developer is trying to tell me that I don’t own the air above my land.
Don’t believe it. You own everything up to the moon.
Jenett Rochester, manager of Memphis office for Premium Title Group
(901) 752-1587 option 2 for Jenett
Jo Garner’s Bio
www.MortgageLoansBlog.com www.MoneyShoppe.NET (901) 482 0354 jogarner@mindspring.com
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 17 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.BIZ She is currently the host of the Real Estate Mortgage Shoppe program 9A-10A CDT Saturdays on News Radio AM 600 WREC and IHEART Radio http://www.iheart.com/#/live/2145/?autoplay=true and currently publishes on her blog www.MortgageLoansBlog.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.