Today we are sharing some strategies people are using for solutions in this changing real estate market in 2022. I will be looking at ways to widen your net to include inventory not everyone considers available to buy. We will look at ways others have created their own inventory. Tom King will be sharing an interesting fact describing a big reason real estate values are continuing to go up in the Mid-South.
What do YOU want to accomplish with YOUR mortgage? Make your plan. Let’s work your plan. If the deal works for you today, let’s do it today. We can talk at 901 482-0354 or email jo@jogarner.com. Subscribe to get weekly Real Estate Mortgage Shoppe podcasts and show notes at www.JoGarner.com
To Your Success,
Jo Garner, Licensed Mortgage Loan Originator NMLS 757308 and host of Real Estate Mortgage Shoppe
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LET’S GET STARTED…
Good morning, Memphis! Welcome to our internet listeners and podcast 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 THINK OUTSIDE THE BOX FOR SOLUTIONS IN THIS CHANGING REAL ESTATE MARKET 2022. Thank you to real estate closing attorneys Rob Draughon and Shelley Rothman closing attorneys at Griffin Clift Everton and Maschmeyer for sponsoring Real Estate Mortgage Shoppe today. For your real estate closing, call Rob and Shelley at 901-752-1133. Subscribe to get our weekly blogposts with podcasts at www.JoGarner.com. Call us while we are live today July 23rd, 2022 at 901 535 9732.
INTRODUCING TOM KING OF BILL KING APPRAISAL SERVICE
Back in the studio our expert real estate appraiser Tom King of Bill King company will be at the microphone. Tom, I believe you have probably been in every house in the Mid-South or at least in the houses around it. You have been appraising homes for over 40 years. You have been co-hosting Real Estate Mortgage Shoppe for over 10 years. Take a moment and tell our new listeners a little bit about yourself and what you do for your customers (Tom has about a minute to intro himself)
(Jo) Strategies to overcome Inventory Shortage:
Expand your Net of Available Homes By Expanding Your Financing Options
Clendon and Clancey Claridge knew what they needed in a home—enough bedrooms for themselves and their children, a flexible space to serve as an office and an expandable space to accommodate an older family member who would soon need to move in with them. What they wanted in the neighborhood where they wanted to live just didn’t seem to exist.
The conversation started out something like this, “We have been looking high and low. We’ve been looking for a long time. We’re tired and we’re ready to quit. Our realtor keeps sending us listings but the houses he is sending us just don’t meet our needs. Maybe we need a new realtor too.”
“Hmmm….,” I thought, “maybe Clendon and Clancey need to widen their net.” I talked with these customers and I later talked with their realtor about loan products to purchase and fix up homes with a renovation and repair loan. It would costs a little more at closing but not too much more. The payment would still be affordable for these clients too.
The realtor could show homes to Clendon and Clancey that may not be what they want today, but they could do a renovation and repair loan to modify the home to what they want and even add a room and more. Suddenly the availability of homes expanded and the possibilities begin to unfold when they started thinking outside the box. Clendon and Clancey got their second wind and the realtor got a second chance to help them find their prize.
There are several ways to finance a home using renovation and repair loan programs. Two of the most common programs are the FHA 203K renovation and repair loan and the other is the conventional Fannie Mae Homestyle renovation and repair loan. There are other ways to finance fixer-uppers too which we have covered on other episodes of Real Estate Mortgage Shoppe . Don’t forget–You can always build the home you want too.
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(Jo) Tom King of Bill King Appraisal Company, you have over 40 years experience appraising homes in Shelby, Fayette and Tipton County TN. What are some ways you see home buyers and sellers successfully getting what they want and need in this current real estate market? (TOM points out one of the big reasons we are seeing prices going up so rapidly in the Mid-South is because of the number of investment properties being sold here. When someone buys a home for investment, the appraisal values are determined by using the income approach instead of the sales comparable approach. Since rent rates have been racing upward, the income approach to value on investment purchases allow for higher prices on the homes in a neighborhood so prices go higher and higher. When someone buys are regular principal residence, the higher prices on the other property sales in the neighborhood pull up prices and values on all the properties in the neighborhood. )
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You’re on Real Estate Mortgage Shoppe. I’m your host, Jo Garner, Mortgage Loan Officer. What do YOU want to accomplish with your mortgage? Make your plan. Let’s work your plan if the deal works for you today, let’s do it today. When we come back Tom King of Bill King Appraisal company will be helping us pinpoint some solutions in our unique real estate market.
2nd segment after 9:15 break: Our Look Back Memphis Trivia Contest is brought to you by notable Memphis historian, Jimmy Ogle. 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 # 124 * 03/10/18
Lakeland
Question: I was the site of an international dragstrip from 1960 to 1979. Who am I?
Hint: I was developed around a manmade lake in 1959.
Hint: I was incorporated in 1977.
Hint: My population is now over 12,000 citizens.
Final Hint: My amusement park had a large Brussels World’s Fair Sky Ride over the lake.
Answer: Lakeland. Garner Lake is a man-made lake, built in 1959 as the centerpiece of Lakeland Amusement Park, which operated until 1976. Garner Lake is the largest lake in Shelby County at 240 acres. The lake is approximately one mile long and 1/2 mile wide at the dam. The shoreline is 8.44 miles and today has numerous residences on its shores. Lakeland Amusement Park opened in 1960 and featured a sky ride over the lake, two railroad trains (one we all remember as Huff-N- Puff), numerous kiddie rides, games, amusements and a paddle wheeler riverboat on the lake. It was one time touted as the “Disneyland of the Mid-South” and closed in 1977.
Lakeland Dragstrip, later knows as Lakeland International Dragway, opened on July 4, 1960. The visionary for Lakeland Drag Strip was Raymond Godman. The strip was featured in the 1971 cult film “Two lane Blacktop”. In 1972 Big Daddy Don Garlits set an AHRA national E.T. record of 5.95 seconds. It was closed in 1979 and demolished in 2009 to make way for mixed-use industrial development, yet remnants of the trach remain. The Lake District, which will take the place of the former Belz Factory Outlet Mall at I-40 and Canada Road, is an upscale 160+ mixed-use community surrounding a 10-acre lake and waterways. Designed to be an urban village, The Lake District will open in 2019 (thelakedistrict.us).
The City of Lakeland was incorporated in 1977. Lakeland (now between Highway 70 and Highway 64 in northeast Shelby County) has grown from 612 residents in 1980 to over 12,400 residents in the 2010 census. Stonebridge Country Club is a 6,768-yard, tree-lined golf course opened in 1973. The Lakeland School System (LSS) is one of the highest performing school districts in Tennessee with its students scoring in the top 2% of all schools in the state. Lakeland Prep High School is scheduled to open in August, 2020. A 3-year project to completely redo the I-40 interchange (Exit 20) is now complete. In 2017, the City of Lakeland was designated as an Adventure Tourism District by the Tennessee Department of Tourist Development! Today, Wyatt Bunker is the Mayor of Lakeland. www.lakelandtn.gov
TOPICS COVERED BY TOM KING
What are the struggles you see in the real estate market?
What are some strategies you see people using to get what they want and need in the current real estate market?
What do you predict for the future over the next year or so in real estate?
What are some obstacles you see concerning the repairs on homes?
Your opinion about where you see values going in the next year? (Slowing vs Declining)
TOPICS COVERED BY JO GARNER, MORTGAGE LOAN OFFICER:
Examples of the ways mortgage customers are thinking outside the box to solve problems and get closer to what they want in real estate
Strategies to Overcome Rising Mortgage Rates:
If you can’t find it, build it—Ian and Isabelle Ikerd’s strategy to make their own inventory
Ian and Isabelle were budget conscious and didn’t want to jump out and buy a home and regret it later. They both agreed on the type house they wanted, the amenities they wanted and the down payment and monthly payment they could handle. The problem? The type house they wanted was already under contract by someone else. They had been diligently driving around for over a year looking for a home. When they found one, someone else beat them during competitive bidding from multiple parties offering to buy.
Ian and Isabelle where shocked each time they would call me for a financing scenario over the last year. The prices on homes were going up quickly and so were the mortgage rates.
“The houses that have what we want are either too big, too expensive or just won’t fit how we want to live in it.” Ian wanted to custom build a home but Isabelle pointed out that it would take a year to build and mortgage rates would blow way past their budget by the time they would be within a time frame to lock in the mortgage rate.
The answer for the Ikerd’s was the one-time construction-to-permanent mortgage that would allow them to lock in the price of the home with their builder. They could also lock in a fixed mortgage rate right away that would protect their mortgage rate until they could finalized the terms when the home construction was complete. If they could close within 360 days, they would not have to requalify for the loan and they would already have their fixed rate mortgage they locked in at the start of construction. Ian and Isabelle could sleep peacefully at night and enjoy their home building journey.
When you think you are out of options—think outside the box
IF IT IS TO BE, IT’S UP TO ME—KATARINA KLAUSSEN’S STORY
(Jo says) The late great Henry Ford has been quoted to say, “Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.” With my over 25 years experience as a mortgage loan officer, my mortgage clients have taught me about the value of thinking outside the box and a great many other gems too.
As a little girl, Katarina Klaussen never had to hesitate when friends and family would ask her what she wanted to be when she grew up. “A doctor. I’m going to be a doctor,” she would reply matter-of-factly. At least that what her heart yearned to do. But it would cost money—money she did not have. Katarina recited to herself, “If it is to be, it is up to me. I have to figure out a way to get up, under or around this mountain.”
Katarina studied hard, earned a scholarship and, after getting her 4 -year degree, now it was off to medical school. She worked on some special projects which earned her some paid tuition to medical school, but only to a school out of state. How could she afford to live there?
Katarina found an abandoned home that people in town referred to in a derogatory sense as “That House.” This house was close to the school and needed a LOT of cleaning up and quite a number of repairs, including moving the family of racoons out of the basement. The owner was only too glad to sell this eye-sore to Katarina at a cheap price and he even offered to finance it for her—since the banks wouldn’t loan on such a derelict property.
She cleaned up one corner of the upstairs so she could move in and progressed on cleaning up the rest of the house. But, the property needed electrical and plumbing repairs and some carpentry to make it livable. She was short on time and skill. Who could help her without charging her an arm and a leg? The Answer? Some skilled college friends who worked doing maintenance for the school. They needed a little extra money so the work got done at a bargain price. Katarina rented a few of the rooms in THAT HOUSE to roommates and, voila’, she was making an income.
After graduating medical school, Katarina was able to sell her renovated home for a huge profit. This helped fund the next 3 years of her medical residency in a different area of the country. That is when I had the privilege of becoming Katarina’s lender-for-life during her medical residency in the Mid-South area. Today, Katarina is a successful doctor, providing a good life for her family. I am sure she is teaching her children what she learned–to take responsibility for their own future. “If it is to be, it is up to me.”
REAL ESTATE TIP OF THE WEEK ( Tom King has about 1 to 1.5 minutes to share a real estate related money-saving or time-saving tip):
Bridge loans give buyers the cash they need from the equity on their old home to help them purchase their new home without having to show the contingency on selling their old home before purchasing the new one.
Jo Garner talks about the benefits of the cash out refinance to consolidate variable rate debt into one fixed rate mortgage. Other reasons common to people refinancing are to add rooms to the home, modifying the home meet family needs, adding value. Some people use a cash- out refinance to get funds to buy an additional house or achieve other goals.
ANNOUNCEMENTS:
Talk Shoppe offers free networking & education to anyone interested in real estate or in business or in health and wellness. Talk Shoppe meets every Wednesday 9A-10A CT at Concorde Career College 5100 Poplar Ave 1st floor Memphis, TN (Clark Tower). You can also join the even on zoom. Go to www.TalkShoppe.com and click the Events tab for the link to get into the event online. This Wednesday July 27th, 2022 9A CT “The Mastermind Principle based on the book Think and Grow Rich by Napoleon Hill.
Talk Shoppe thanks Kim Halyak of the Cooper Young Garden Walk for her contribution to make Talk Shoppe’s free networking and education free to our community. Connect with Kim Halyak of Cooper Young Garden Walk for some great garden ideas at 901 299-5887
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Thank you to Taylor Morse of Cartridge World of Collierville for supporting our local business community with free networking and education through Talk Shoppe. Ask Taylor how to save 30% or more on your printing costs (901) 853-3230
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Thank you to Ed Hill, the Happy Roofer at Masters Roofing in Memphis for your financial support to make Talk Shoppe networking and education free to our business community. Connect with Ed Hill of Masters Roofing when you need a roof repair or replacement 901 273-6594
It’s hot outside here in Memphis, TN Stay cool! Stay hydrated. Take care of the outside animals and check on your neighbors
4. Subscribe at www.JoGarner.com and you can get our weekly blog posts with podcasts conveniently in your inbox.
5. Real Estate Mortgage Shoppe reminds you to MAKE YOUR PLAN. LET’S WORK YOUR PLAN. IF THE DEAL WORKS FOR YOU TODAY, DO IT TODAY.
SPECIAL NOTE: REAL ESTATE MORTGAGE SHOPPE, JO GARNER AND TALK SHOPPE DO NOT ENDORSE 100% OF THE CONTENT COVERED ON THE SHOW AND IN THE BLOG POST. 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. ALL EXAMPLES GIVEN FOR ILLUSTRATION PURPOSES ON REAL ESTATE MORTGAGE SHOPPE AND ARE BASED ON TRUE STORIES BUT WE USE FICTIONAL CHARACTERS AND DO NOT DIRECTLY REFLECT REAL PEOPLE OR EXACT DETAILS IN ANY OF THE SITUATIONS. EQUAL OPPORTUNITY HOUSING .
QUOTE CORNER:
Pinterest- “ If you only focus on the problem, you may miss the easy solution.”
Kyle Chandler- “Opportunity does not knock. It presents itself when you beat down the door.”
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REJOINDERS:
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David Corwin, Deputy Director of USDA Rural Housing Harrisburg, PA
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Jo Rook, Director of Healing and Wellness Ministries at Church of the Harvest in Olive Branch, MS
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Saul Klein, San Diego CA
Transitional Music: “The Story of My Life” Matthew West ; “When You Believe” by Whitney Houston; “Don’t Stop Believin’” by Journey; “Memphis” by Johnny Rivers for the Look Back Memphis Trivia Contest
PICK UP YOUR COPY OF “CHOOSING THE BEST MORTGAGE-THE QUICKEST WAY TO THE LIFE YOU WANT” by: JO GARNER
An essential guide for real estate professionals and their customers.
Now on Amazon and Barnes and Noble
CALLER: Pat Goldstein, Realtor with Crye-Leike Realtors (901) 606-2000 known as the “Gold Standard” in real estate for West TN and North Mississippi.
Pat gives an example of solving problems for her clients who want to buy a home with a competitive offer but don’t want to have to show as a contingency that they have to sell their home first.
Pat was able to tap a resource of investors that offered her client recently a price $15K over what some had offered them earlier. The cash investor closed on the home within two weeks so that the buyer could have the cash they needed to close without contingency on the new home where they wanted to live.
ABOUT TOM KING, REAL ESTATE APPRAISER
Tom is a well- respected and sought after appraiser in Memphis, Tennessee. He is a second generation appraiser with 40 years of experience. He has been elected to the Memphis Area Association of Realtors Board of Directors three times.
Tom is a certified residential appraiser in Tennessee. He have appraised over 20,000 homes in his career. A graduate from the University of Tennessee with a degree in real estate, Tom is also a Certified Relocation Professional (CRP). Tom also has vast experience in dealing appraising real estate for pre-listing sales, cash buyers, divorce settlements, estate settlements. (901) 487-6989
ABOUT JO GARNER-MORTGAGE LOAN OFFICER:
WHAT DO YOU WANT TO ACCOMPLISH WITH YOUR MORTGAGE?
www.JoGarner.com (901) 482 0354 jo@jogarner.com twitter @jogarner NMLS# 757308
(currently working with Cardinal Financial Company, Limited Partnership NMLS #66247 equal housing opportunity 2645 Appling Rd 102 Memphis, TN 38133 ) Online loan application https://online.cardinalfinancial.com/#/p/apply/jogarner
www.cardinalfinancial.org for licensing info www.nmlsconsumeraccess.org/EntityDetails.aspx/company/66247 “Whatever YOUR personal priorities are, my job is to help you get the mortgage terms that will give you bragging rights when you talk about it and help you score on hitting your goals .”
As a mortgage loan officer, my job is to help you get to the benefits you want from your financing terms. What is most important to you? I can help you find the financing terms that will help you get to what you want. What is your comfort level on a house payment? How much are you comfortable paying down,? What type of financing do you need to get the house you 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.”
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 25 years. She grew up in West Tennessee and got her start in real estate 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 25 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 Jo Garner also host the radio show Real Estate Mortgage Shoppe airing on News Radio AM 600 WREC and iHeart Radio with podcasts and show notes published on www.JoGarner.com Pick up Jo Garner’s book on Amazon or Barnes and Noble “Choosing the Best Mortgage-The Quickest Way to the Life You Want”