Today on Real Estate Mortgage Shoppe, I’m going to talk about some of the most popular loan programs used by real estate investors and ways you can still buy rental property with nothing down. Phillip Kemp of Reed and Associates of TN will be talking about property management solutions for landlords and people in transition.
Thank you for connecting with us. Please subscribe to www.JoGarner.com so that we can stay connected. If you have suggestions of topics you would like to hear or comments or questions, please contact me personally at jo@192.232.195.219 or (901) 482-0354.
To Your Success,
Jo Garner, Mortgage Loan Officer
Host of 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 “Make Money Investing In Real Estate With The Right Financing & Property Management Solutions.” 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. You can call us while we are live today November 12th, 2016 at (901) 535-9732 or outside the Memphis area (800) 474-9732
Today on Real Estate Mortgage Shoppe, I’m going to talk about some of the most popular loan programs used by real estate investors and ways you can still buy rental property with nothing down. Phillip Kemp of Reed and Associates of TN will be talking about property management solutions for landlords and people in transition.
Phillip Kemp has been working with Reed and Associates for a few years now as a property manager. Reed and Associates is a long-standing property management company and has been offering property management solutions to hundreds of homeowners. <Phillip Kemp introduces himself and what he does at Associate.>
- (Jo) As a mortgage loan officer, in addition to really listening to my clients and knowing which mortgage product will help them, I also watch the market daily to see what is available today and what is on the horizon tomorrow. This past week was tumultuous for the bond market and took the prices on mortgage rates straight up to around 30YR FIXED – 3.75-3.875%; FHA/VA – 3.5-3.75%, 15 YEAR FIXED – 3.125%-3.25% This is the largest rate price increase since 2013 and some market analysts think it might may be establishing a theme of upwardly directed rates. My dad used to talk about grabbing a good deal before goes away by saying, “You can’t steal in slow motion.” Don’t miss your opportunity to refinance to a lower rate or buy a house with an ultra-low payment. But the longer you wait, the less buying power you will have due to higher interest costs making the payment higher. Whether you are buying a primary residence, a second home or an investment property, as the interest rates go up it lowers the amount for your qualification on a payment . On a $200,000 loan with the rate going from 3.5% to 3.875% makes a difference of about $42/mo.
<Phillip Kemp of Reed and Associates of TN makes a comment here >
(Jo) A popular recurring question about buying real estate investment properties asked by listeners and customers is this one—Can I buy real estate for investment with zero down? My answer in most cases is “in many cases you CAN still buy real estate investment with zero down.” Traditional loans require at least 20% down, however if you want to go treasure hunting with me, you may be amazed at the different places we can find other money that could be used to fund the 20% down payment, allowing you to get in for zero down or fairly close with some big gigantic bragging rights for yourself.
Before I got in the mortgage business several years ago, I had an awesome opportunity to be mentored personally by the famous author and zero down real estate investor, Robert G Allen, who wrote the books, Nothing Down, Creating Wealth and The Challenge. I flew to San Diego and spent all day every day for several days with Robert Allen and a few other people like myself hungry to learn how to think outside the box to be successful in real estate and real estate financing. We learned 50 ways to buy houses with nothing down. Even though I have not used all 50 zero down scenarios, on my first personal real estate deal, I not only got in for nothing down but left the closing table with a $600 check. I HAVE used a number of nothing down formulas for clients needing zero down and in the course of working with various customers, we have come up with a few of our own which are different than the original ones as lending regulations have evolved .
<Philip Kemp makes comments >
(Jo) Since today we are covering ways to make money buying real estate, here are some rules that some of my more successful real estate investor customers use and I do too.
- Remember that when you buy real estate rental property, you are buying a business. You need to buy at a price and terms so that you are making an acceptable positive cash flow on day one and you need more than one exit strategy. If you concentrate first on making sure your mortgage terms allow you a low enough payment to make an acceptable cash flow, then you have an option of keeping the property for income or selling it later outright later. One way to insure that you are getting a great cash flow on your properties is to refinance if you can lower your interest rate cost—especially if you can use a special HARP refinance program or an FHA streamline or other type special streamline refinance program with no appraisal required. It’s a big money saver and you can use the money saved to invest into making even more money. You can do this on your own, or you can invite me and my assistant Susan to by walk with you on the financing side of reaching your dream. On Real Estate Mortgage Shoppe we always say MAKE YOUR PLAN, LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, LET’S DO IT TODAY. Call me personally directly after the show at 901 482-0354 901 482-0354 or connect with me at JoGarner.com but you have to talk with me personally. Or you can call while we are live in the studio today November 12, 2016 at (901) 535-9732. (901 535-9732.
Phillip, what are some solutions you offer your homeowner clients on the property management side ?
<Phillip Kemp launches his topic>
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LET’S TALK SHOP—TALK SHOPPE’S BUSINESS TIP FOR REAL ESTATE PROS:
2nd segment after 9:15 advertising break – (producer to start the song “Taking Care of Business” by Bachman Turner Overdrive –but bring the volume down before the lyrics start) It’s time to talk shop with Talk Shoppe’s Business Tip For Real Estate Professionals. Talk Shoppe is a marketing company offering free education and networking to anyone interested in real estate or in business. Talk Shoppe is made possible by the financial support of its sponsors and advertisers. For more about Talk Shoppe, go to www.TalkShoppe.com (shoppe) For our Talk Shoppe Business Tip today we have Talk Shoppe advertiser, Angie Brady of Republic Roofing (901) 297-4141. Angie has done some work for me on my rental property and others in our business group have some good things to say about Angie and Republic Roofing. Angie Brady, what is our Talk Shoppe Business Tip for Real Estate Professionals today? (Jo says, “Thanks, Angie. How do we contact you for roofing work? <Angie gives contact info>
Phillip, Eve or Jo ask Angie these questions :
- Angie, talk about the types of jobs Republic Roofing do? Commercial? Residential
QUESTIONS ANSWERED OR ASKED BY EVE SOTIRIOU:
- Eve tells brief story of her rental property in Maine and the unfortunate circumstance of the father in the family suddenly passing away and leaving his wife and children who could not afford the home without his income.
- Importance of using a real estate management company to free the landlord to work a regular job or spend his/her time making
QUESTIONS ANSWERED BY GUEST PHILLIP KEMP-
- Investors tolerance for risk
- Tangible real property investing in uncertain investing climate
- Financing options for investors
- Whether it makes sense to hire a full service real estate broker to assist with: acquisition, leasing, management, maintenance, exit strategy.
- What are some examples of real estate situations where property management was the right solution for your customer?
ACQUISITION
- Turn-key acquisition of ready-to-rent properties
- Assisting investors to acquire & renovate properties
PROPERTY MANAGEMENT SERVICES
- Leasing / Marketing
- Day-to-day lease management
- Accounting / Financial
- Maintenance & Service Calls
REPAIRS & RENOVATIONS
- Preventative Maintenance
- Tenant Turn / Make Ready
- Renovations & Upgrades
- For Long-term investment performance
- In Preparation for Sale
EXIT STRATEGY / ASSET DISPOSITION
- Full-service MLS Listings for retail & investor buyers
- Network of investors to purchase as-is
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QUESTIONS ANSWERED BY JO GARNER:
- What mortgage programs are most popular with real estate investors?
- Fannie Mae fixed rate mortgage with 20% down payment when you are purchasing a rental property. If you are purchasing a primary residence there are loan programs available where you might be able to get a 100% loan or 3% to 3.5% down payment perhaps with down payment assistance. Most rental property purchases will require at least 20% down payment.
- The Quick Cash Back Investor Refinance program (that’s what I call it) that I use for my real estate rental property investors who pay cash for the property or use a loan secured on something OTHER than that property. In most cases I can refinance that property that they just paid cash for right away for up to 75% of the appraised value of the property or the amount that they paid for it at closing whichever amount is less. But my investor clients can get their money within around 30 days or less without having to wait out the 6 months seasoning period required on other programs. There are some special requirements on this product though. Call me and let’s see if it will work for you.
- Substitution of Collateral –This is when you buy a house but use a loan secured on a different piece of property or a loan secured on something else altogether.
- Where can real estate investors get the money for down payment so they can buy nothing down?
- 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
- 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: Phillip and Angie Brady offer 2 short real estate related tips that can save a homeowner money, time and headaches.
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 16th, 2016. Talk Shoppe presents: “What’s It Going To Take Be An Author?” presenters are author, editor & speaker Bradley Harris of the Goodbook Company and Dell Self with www.SpeakThroughMe.com BradleyHarrisGoodbook@gmail.com and Dell@SpeakThroughMe.com Talk Shoppe events are free thanks to sponsors/advertisers/supporters like Mary Lou Nowak, Mid-South Home Helpers, offering quality non-medical help to allow your handicapped or elderly loved ones to remain safely and happily in their own home. www.homehelpershomecare.com (901) 414-9696.
- Thank you to Jana Cardona, Executive director of Business Network International—a great organization to build your business through referrals www.bniconnect.com
- HAPPY VETERAN’S DAY WEEKEND. THANK YOU TO OUR VETERANS FOR THE SACRIFICES THEY MADE SO WE CAN ENJOY FREEDOM IN THIS COUNTRY.
- 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:
“Normally a clothesline in the yard would regularly impact the appearance and price of your property, but I’m calling I a solar powered wardrobe spa.” (gotta’ love creative real estate ads)
William Penn Adair- “Find out where people are going and buy the land before they get their.”
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REJOINERS: Leah Anne Morse, Cartridge World of Collierville, TN (901) 853-3230—saving you up to 30% of your printing costs using the latest scientific breakthroughs
Dan Sater, author of Top 20 Toxic Credit Mistakes People Make New York www.creditscoringadvisor.com
Peggy Lau, Independent Representative with World Ventures in Cordova, TN, showing you how to earn free first-class vacations www.ipoa.dreamtrips.com
Transitional Music: “King Of The Road –Trailers For Sale Or Rent” by Roger Miller ; “Money Song” the Muppets; “Money Changes Everything” by Cyndi Lauper; “Taking Care of Business” by Bachman Turner Overdrive for the Talk Shoppe Business Tip for Realtors
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ABOUT EVE SOTIRIOU, LANDLORD
Eve Sotiriou is a landlord in living in Waterville, Maine. She listens to Real Estate Mortgage Shoppe on iHeart Radio. Her story is like many others because Eve went through a major life event which caused her to have to move from her home in Durham, Maine, but she did not want to sell during this time because real estate prices were in a slump. Instead, she hired a property management company to rent the property and manage it, so that she would be able to sell her home at a later time.
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ABOUT ANGELA LANNOM-BRADY, REPUBLIC ROOFING (901) 297-4141
Angie works for Republic Roofing and Restoration a local company. She loves her job and her hometown. She was born and raised in Memphis. Angie is excited for the city and all the things it has to offer!
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ABOUT PHILLIP KEMP, REED AND ASSOCIATES
Reed & Associates is available to assist our investors with various areas of their investment properties.
Phillip Kemp
Reed & Associates of TN, LLC
269 Germantown Bend Cv, Suite 101
Cordova, TN 38018
Main Office: (901) 758-1133
Phillip Kemp direct: (901) 209-0555
Reed & Associates has developed a network of quality experts to assist you with many aspects of owning, maintaining & operating your investment properties.
Please let us know if we can assist you by connecting you with a trusted expert in any of the following areas:
FINANCIAL
- Mortgage Lending
- Traditional Mortgage / Refinance Options
- SFR Specific Financing
- Insurance
- Landlord / Property
- Umbrella Liability
- Asset Protection
- Trusts
- Estate Planning
- CPA
- Real Estate Appraisal / Property Tax Appeals
PREVENTATIVE MAINTENANCE
- Painting & Exterior Wood Replacement
- HVAC / Plumbing / Electrical
- HVAC Maintenance Contracts
- Pest Control
- Termite Contracts
- Quarterly Pest Maintenance
- Flooring
- Carpet & Tile Cleaning
- Flooring Upgrade or Replacement
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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