Deal to Create Area's Largest Lender

Bank of America's acquisition of mortgage lender Countrywide is set to close July 1.

To read the full story, click here.

Source: Wichita Eagle, Business Today, June 26

FHA Waives 90-Day Waiting Period for Resales

In an attempt to help lenders speed the process of getting real estate-owned properties off their books, the Federal Housing Administration will temporarily lift a 90-day waiting period for property resales financed by FHA-guaranteed loans.

Read the Full Story Here

Source: Inman News, Friday, June 13

Investor Network Meeting

We will be holding our monthly investor network meeting tomorrow night at 7:00 pm. Our meetings are held the last Tuesday of every month at the Eaton Place.

Eaton Place - 517 E. Douglas
* parking is available on Douglas, St. Francis, and behind the building

I hope you can make it.

Avoid Pitfalls When Buying Foreclosures

Buying a foreclosed home is no cakewalk. It can be a sure-fire way to lose money for a purchaser who isn’t knowledgeable and careful.

Here are some prime considerations for anyone wading into the foreclosure market.

• Avoid outstanding liens. Make sure the property has a clean title. Any outstanding liens and fees incurred by the original owner will be transferred to the new buyer.
  Bid conservatively. The market in many places is still depreciating. That unknown added to transaction, repair, and marketing costs could sour the deal.

• Beware foreclosure concentration. Prices in neighborhoods where there are lots of foreclosures have declined the most – and prices in these areas are still declining. A buyer should confirm that there’s an opportunity to make money if prices fall another 15 percent.

• Beware the appraisal. If the price is discounted from an appraisal done before August 2007, it is almost certainly unrealistically high.

• Cash is king. Even a buyer with a renter lined up and enough money for a 20 percent down payment needs still more cash to weather another two or three years of a depressed market before unloading the property.

Source: Forbes, Matt Woolsey (08/19/08)

Mobile Home for Sale or Rent-to-Own

1970 American
2 bedrooms
12’ x 65’

Located in Timbercreek MH Park
1302 E. MacArthur #504

For Sale - $3500

Rent-to-Own:
$500 down
$150/month
$185 lot rent – pays for water and trash

Call Lacy today to schedule a showing.

316-393-1215

Why You Should Work With a REALTOR®

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are five reasons why it pays to work with a REALTOR®.


1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi-page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security — it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction-related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

Where McCain and Obama Stand on Housing

As the race for the presidency shapes up as a contest between Sen. John McCain, the presumptive Republican nominee, and Sen. Barack Obama, who will claim the Democratic nomination, here are their initial positions on housing and related economic issues.

McCain

1. Proposes to spend up to $10 billion to allow some home owners to trade high-interest, adjustable-rate mortgages for fixed-rate loans.
2. Proposes a suspension of the 18.4-cent federal gas tax and 24.4-cent diesel tax during the summer.
3. Supports a middle-class tax cut by doubling the personal tax exemption for dependents to $7,000.
4. Calls for a simpler tax system with two tax rates and a generous standard deduction.
5. Supports making permanent the 2001 and 2003 income tax cuts and proposes cutting the corporate tax rate to 25 percent from 35 percent and allowing businesses to immediately write off capital expenses.
6. Maintains that government assistance to the banking system should focus on preventing systemic risk that would endanger the financial system and the economy.
   

Obama

1. Calls for greater government regulation of the U.S. financial system and proposes a new $30 billion economic stimulus plan to help home owners, including a $10 billion foreclosure prevention fund to help people keep their homes and $10 billion in relief for state and local governments hit hardest by the housing crisis.
2. Outlines six "core principles for reform" that would give the Federal Reserve supervisory authority over any financial institution to which it might make credit available and calls for reform and streamlining of financial regulatory agencies.
3. Wants to repeal a provision in the bankruptcy law so ordinary families can modify terms of home mortgages.
4. Proposes a 10 percent mortgage tax credit for middle-class Americans.
   
   Source: Reuters News (06/04/08)

Midwest Price Index Rises in May

The Midwest Consumer Price Index rose 4 percent to 207.168 in May from 199.194 last year, the U.S. Department of Labor's Bureau of Labor Statistics said Friay.

May's index was up 0.9 percent from 205.393 in April.

The index number means that a typical Midwest market basket of goods and services that cost $100 in the 1982-84 base period cost $207.17 in May.

Higher energy costs in the main expenditure categories of transportation and housing accounted for virtually all increases in the index, Regional Commissioner Stanley Suchman said in a release. Other goods and services, education and communications, medical care, and recreation accounted for little change in the monthly index.

In the Midwest in May:

• Apparel prices fell 1.7 percent from April and increased 0.8 percent from last year.

• Transportation prices increased 3.8 percent from April and 7.8 percent from last year. Motor fuel prices, part of the transportation index, increased 10.5 percent from April and 18 percent from last year.

• Medical care prices increased 0.1 percent from April and 3.4 percent from last year.

• Recreation prices remained unchanged from April but rose 2 percent from last year.

• Food and beverage prices increased 0.4 percent from April and 5.1 percent from last year. Prices for food away from home increased 4.6 percent from last year, the highest increase since January 1991.

• Housing prices rose 0.4 percent from April and 2.8 percent from May 2007. Fuels and utility prices for housing rose 10.8 percent from last year.

• Education and communication prices rose 0.1 percent from April and 2.7 percent from last year.

• Prices for other goods and services rose 0.4 percent from April and 3.9 percent from last year.

The Midwest is Missouri, Kansas, Nebraska, Iowa, Minnesota, North Dakota, South Dakota, Wisconsin, Illinois, Indiana, Ohio and Michigan, as defined by the bureau.

Source Wichita Business Journal, June 13, 2008

7 Reasons to Own Your Home

1. Tax Breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Why Invest in Real Estate in the Wichita, KS Area

• Wichita was named the #1 place in the country to live the good life cheaply, Forbes

• Wichita was ranked #1 “The strongest real estate market in the United States” forecasted for 12-1-07 to 12-01-08. The ranking was done 1-14-08 by VeroFORECAST. Vero real estate solutions is a leader in risk management and valuation services based in Santa Ana, CA

• Wichita ranks in the top 32 cities nationally for quality of life. Forbes

• Wichita was ranked 2nd by Forbes, 2008 in their list of the "Best Cities for Jobs"

• Wichita was ranked the 2nd “Best city under 1,000,000 residents to relocate your family to.” ERC, 2007

• Wichita ranks #2 in their list of “10 most affordable places to live in the nation.” American City Business Journals

• Wichita was ranked last year the 2nd best real estate market in the Midwest. Money Magazine 2007

• Wichita's real estate prices are 12% below what they should be. National City

• Wichita is ranked #1 in manufacturing among cities below 1,000,000 populations.

• December, 2007 unemployment rate was a low 3.6% compared to a national rise to 5%. State of Kansas

• Wichita home appreciation was 5.7% November, 2006 to November, 2007. NAR

• Wichita is a key global competitor with nearly 50% of its products being shipped overseas. Kansas State, 2008

• Home Sales are strong and home prices will continue to rise in 2008. WSU Center for Real Estate

• Mortgage Markets and Foreclosures -- Recent turmoil in the credit markets may result in fewer financing options for home buyers with poor credit and little cash for a down payment. Buyers with good credit, however, should be relatively unaffected, and 30-year mortgage rates are still very low.

10 Tips for Buying a Fixer-Upper

Buying a basically sound house and updating the cosmetics is a profitable thing to do in almost any market. But be careful what you buy or it may end up costing you later on.

Here are 10 things to consider when selecting a fixer-upper:
1. Purchase homes that are at least 30 percent below the market value of comparable nearby homes.

2. Choose a location with a low crime rate, good schools, and quiet streets. There isn’t anything you can do to cure a poor location.

3. Choose a house with three or four bedrooms. Smaller homes are unlikely to have enough buyer appeal.

4. Avoid homes that need major unprofitable repairs, include wiring, major plumbing, foundation repairs, major kitchen and bathroom renovation, room additions, and/or a new room. Spending money on these basics doesn’t add value. Buyers expect them.

5. Find a home that needs profitable cosmetic improvements like fresh paint inside and out, new light fixtures, new carpets and flooring, and fresh landscaping.

6. Look for affordable, low down-payment financing, such as taking over an existing mortgage, lease with option to buy, seller carry-back financing, or a combination.

7. Avoid obtaining new bank financing until the fix-up work is completed and the home’s market value has increased.

8. Don’t buy a fixer-upper that is more than 60 minutes from your current residence because it is important to visit everyday while the renovation work is being done.

9. Make sure that the seller or tenants will vacate immediately upon transfer of title.

10. Look for sellers who are motivated to sell and who want to make the sale happen.

Source: Inman News, Robert J. Bruss (09/01/07)


Let me help you get started investing in real estate.

Wendy Wilkinson, Real Estate Investment Specialist
Keller Williams Realty
(316) 644-7475

Top 10 Reasons to Invest in Wichita, KS

1. Wichita, KS ranked #1 Strongest Market
(Source: VerosFORECAST)

2. Wichita, KS ranked #2 in Most Affordable Markets to Own a Home
(Source: Bizjournals.com)

3. Wichita, KS anked the Second Best Place in America for Relocating a Family
(Source: Worldwide ERC and Primacy Relocation)

4. Wichita, KS ranked 2nd Best City for Jobs in 2008
(Source: Forbes)

5. Solid Appreciation continues to cause Average Home Prices to Rise
(Source: 2008 Wichita Housing Market Forecast, WSU Center for Real Estate)

6. Strong Local Economy
Wichita’s economy is strong and ripe for development. We have the highest concentration of manufacturing jobs and skilled labor in the nation. Sedgwick County alone contributes nearly half of the state's manufacturing employment earnings.
(Source: Greater Wichita Economic Development Coalition)

7. Growth
The Wichita, KS market is currently experiencing very strong growth - supported by population growth, new employment, road construction, commercial/residential construction, etc.

8. No Housing Bubble in Wichita, KS
Many parts of the U.S. have already peaked in price and investors are selling at a profit to re-invest their money in the Wichita, KS market; a.k.a. Buy Low, Sell High... then Repeat

9. Low Vacancy Rates & Increasing Rental Rates
The multifamily market continued to improve in 2008 with the overall vacancy rate dropped to 6.6% in 2007 from 8.5% in 2006.
(Source: J.P. Weigand & Sons)

10. Investor Savvy Real Estate Team at Your Service
Our team specializes in working with investor, local and out of state.

Another Great Rehab Property

The last rehab property went under contract within 24 hours. Don't miss this one.

Best and Final Offers Due June 10. Call me today to schedule a showing.

3 bedrooms
1.5 baths
2 car attached garage
Crawl space

Central & Tyler area
$57,900 - Best and Final offers due June 10

Repairs needed:
Some siding replaced
New roof
Paint - interior and exterior
Carpet
Kitchen & bathrooms updated
(not sure about plumbing, HVAC)

'08 Tax Appraisal = $90,000
FMV after repairs = $90,000-$100,000

Let me know if you would like more info.

Rehab for Profit Opportunity

Looking for a property to fix up and sell? I have just the property for you.

3 bedrooms
2 Baths
Full Unfinished Basement
1 Car Garage
Fenced in Backyard
Great Neighborhood
Across the Street from Park

'08 Tax Appraisal = $103,000
Sold in '06 = $100,000

Repairs Needed:
Paint
Hardwood Floor Refinished
Kitchen & Bath Update
Waterproofing in Basement
Finish Basement Rooms
Roof
Gutters

Great New Builds in El Dorado

Wilkinson Construction has completed three new builds in El Dorado. All three houses have 3 bedrooms, 2 baths, and 2 car garages. Each has NO SPECIALS and all qualify for 10 years tax abatement.

314 N. Residence ~ $99,900
3 bedrooms, 2 baths, 2 car garage
crawl space
1350 sq. ft.
Chick Here for More Information

418 N. Star ~104,900
3 bedrooms, 2 baths, 2 car garage
Open floor plan, split bedroom plan
crawl space
1300 sq. ft.
Chick Here for More Information

821 N. Oak ~ 132,900
3 bedrooms, 2 baths, 2 car garage
full unfinished basement
1208 sq. ft.
Chick Here for More Information

Great opportunity to own your own home with little or no money down. Why rent when you can buy!