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Seller Carryback / Lease Options Trending Upward

Posted on Nov 26, 2011 in Investors

I agree with Arizona real estate market analyst, Fletcher Wilcox of Grand Canyon Title to expect the number of seller carryback or lease purchase sales to rise over the next decade. See chart below:

 

As more and more sellers are shortselling or loosing their home to foreclosure there is great investment opportunity for real estate investors to increase ROI through lease purchase or owner carry back financing.

Email keith@golfprorealty.com to schedule an appointment with a member of the Keith Jackson Realty team to discuss your real estate investment portfolio and investment goals.

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AZ Rental Market Still Hot

Posted on Oct 12, 2011 in Buyers, Investors, Rentals

AZ Rentals, Renting My Home

There is still a strong demand for residential rentals. Fletcher Wilcox, VP of Business Development and Real Estate Analyst for Grand Canyon Title Agency is a great partner of ours who reports on current Arizona Real Estate trends. Fletcher had this about the Arizona rental market,

“It was the hottest summer on record for signed single family leases.  More single family leases were signed in June, July and August than any previous summer.  The 6,892 single family signed leases this summer was 21 percent higher than last summer’s 5,664 (data from the Arizona Regional Multiple Listing Service, Inc.)   Residential sales: August 2011 ARMLS sales of 8,817 were 19 percent higher than the 7,358 sales in August 2010.”

Click here for the full report. If you are interested in purchasing investment properties call the Keith Jackson Realty Team at 480-363-2019 or email keith@golfprorealty.com.

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15-year Versus 30-year Loan Term

Posted on Sep 28, 2011 in Buyers, Investors

Did you know that the U.S. Census Bureau Statistics website shows that 1 in ever 6 Americans moves each year and that the average American moves over 11 times in their lifetime? There are many costs associated with moving and when it comes to choosing which loan option to choose from it is important for buyers and investors take a more careful look comparing the 15-year to the 30-year mortgage to make sure it matches their financial objectives as well. With so many Americans moving so frequently the importance of conserving your cash on-hand is important for your next home purchase. There are a lot of myths created by financial planners about 15-year versus a 30-year mortage so below I have included a link and excel sheet to help you see the numbers for your self. This will help you compare the two mortgage options and see which will help best fit your needs the next time you purchase a home.

Click here for a neat website powered by myFICO.com which will allow you to compare the cost of the 15-year mortgage to a 30-year. 

Click here for a nice Mortgage Amortization Schedule which shows a 15-year versus a 30-year and breaks it down month by month so you can see how much of your payment is going towards principal and how much is going towards interest. For example, if you were to obtain a $100,000 mortgage using the 15-year option you would get a lower interest rate at 3.375%, monthly payment would be $708/month and you would only pay $27,577 of interest over the life of the loan. If you go with a 30-year loan option then you would have a higher interest rate at 4.125%, but your monthly payment would be much less at $485/month. However, over the life of the 30-year loan you would pay over $74,474 over the life of the loan.

Our recommendation is to talk to your mortgage lender and discuss your timeline and financial goals to determine which mortgage option will best fit your needs. Feel free to call us any time at 480-363-2019 if you have any additional questions.

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Statistics on Supply of AZ Real Estate Past Two Years

Posted on Sep 27, 2011 in Buyers, Investors, Sellers

Well you can ask any real estate agent out there and most will say it is a sellers market. Nearly every residential resale home you submit an offer on under $300k has multiple offers on it. Below is a chart showing the reason why the Arizona real estate market is strating to heat up.

 

You will notice the supply has come down a lot over the last few years month. Another positive takeaway from this chart is you will notice the turquoise (New Listings) and blue line (Sold Listings) are merging closer together which is a very positive sign (means the supply and demand is starting to equalize). There are still many foreclosures coming up the pipeline at all of the major banks and recently a surge of foreclosure notices was reported in August which could be a leading indicator that it may be some time before real estate prices start to see much of an increase.

Arizona Real Estate Stats Update below:

On the positive side this market is ideal for the buy and hold real estate investor:

  • Interest rates are at an all-time low
  • Banks are starting to offer better mortgage options with attractive down payment options
  • Super low real estate prices in Arizona lead me to believe that Arizona will continue to attract flocks of Canadian and other international investors looking for physical assets they can control and generate a good ROI.

Feel free to call a member of the Keith Jackson Realty Team at 480-363-2019 and we would be happy to help you achieve your real estate investment goals.  

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What Does APR Mean When Getting A Home Mortgage?

Posted on Sep 21, 2011 in Buyers, Investors

APR stands for annual percentage rate and is used to determine the annual cost of the loan. There are many myths about this real estate mortgage term and in this blog post I thought I would clear up some important misconceptions. Some important things to remember are that it:

o   Doesn’t affect your monthly payment

o   Measures the true cost of loan

o   Varies by lenders because each calculates the APR differently

Typically the following fees are included in APR but depending on the mortgage lender this is why you will see varying APRs.

·         Points – discount & origination fee

·         Pre-paid interest (typically 15 days is common number used, however company can use any number between 1 and 30

·         Loan process fee

·         Underwriting fee

·         Document & Prep fee

·         PMI (Private Mortgage Insurance)

·         Sometimes included – loan app fee

We have several mortgage partners we work with who can pre-qualify you over the phone and answer this and any other questions regarding mortgage terms and help walk you through the application process. Contact a member of the Keith Jackson Realty Team at 480-363-2019 to help you buy, sell or invest in Arizona real estate.

Our professional real estate services team look forward to working with you.

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How To Buy Auction Properties At The Courthouse? – Investor Tips

Posted on Sep 14, 2011 in Buyers, Investors

I often hear people talk about the great deals they or their friends are getting at the auction on the Courthouse steps. Although there are some tremendous deals to be found at the auction there are more risks involved then purchasing directly from the bank, short sale, or traditional sale. Below is an outline which will walk you through the entire process and hopefully clear up any misconceptions.

Disadvantages to buying homes at the courthouse steps:

  • You have to pay cash for the home within 24 hours
  • No ability to see inside of home usually (very rare cases where you can get in touch with the previous owners before bank re-key’s property and walk the inside of the home)
  • No ability to perform a home inspection before you buy (water and electricity normally off)
  • Many times the banks can delay or remove homes from the auction so auction properties are never a sure thing and can lead to a frustrating and time consuming process
  • It is a coin flip as to whether you got a good deal or not at the auction because one major and unforseen repair could make buying at the auction a losing situation

My suggestion is to keep looking for bank owned and shortsale properties through the MLS. 

Below is a link to all current bank owned and short sale homes for sale in the Maricopa and Pinal Counties:

Bank Owned Homes For Sale - As of 9/14/2011 there are over 3,000 bank owned homes

Short Sale Homes For Sale – as of 9/14/2011 there are over 10,000 short sale homes

If you want to play your luck at the auction then click on the links below for a FREE LIST of auction properties coming up for sale in the Valley of the Sun. 

Maricopa County auction properties scheduled today through December 1st, 2011
Pinal County auction properties scheduled today through December 1st, 2011

I have organized the excel sheet in alphabetical order by subdivision and by most recent auction date. There are several other ways to organize and sort through them using the following criteria:

Legal Description (Subdivision)
Property Address
Property City
Property State
Property Zip Code
Recording Date
Original Date
Original Mortgage Balance
Scheduled Auction Date
Scheduled Auction Time
Property Use
Legal Description
Year Built
Has Pool (Y/N)
Full Cash Value

Call 480-363-2019 or email keith@golfprorealty.com the addresses of properties you would like for us to research more in depth and our team can give you a free estimate of the value of the property and determine a good bid threshold to establish when we go to the auction.

The process for buying at the auction is as follows:

  • Determine which property(s) you are interested in bidding on and set a maximum bid threshold
  • We will contact a local title company we work with to ask them to do the intial title work to make sure there are no liens on the property you are bidding on. There is a small fee for this service from the title company.
  • Give a $10,000 cashier’s check to Keith Jackson Realty before the scheduled auction date (we like to get this at least a week before so we are not scrambling around the day before the auction). We don’t cash this we just hold on to it until a winning bid is accepted.
  • A member of the Keith Jackson Realty team will attend the courthouse steps the day of the auction and you can either attend in person with one of us or as we recommend just communicate by phone with us during the process so you don’t emotionally attached to a property in the heat of the bidding and overbid on any one property.
  • Within 24 hours of the accepted bid we require that you provide the remaining balance via wire transfer to finalize the bid. If winning bidder is unable to perform then they keep the $10,000 cashier’s check so in order to avoid any miscommunications we require that the client provide a proof of funds form from your bank to make sure there is enough cash to be able to close within 24 hours.

There are some incredible buys now regardless of if you are buying at the auction or not. Contact a member of the Keith Jackson Realty Team today at 480-363-2019 to discuss your next sale or purchase of Arizona real estate.

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