At the same time sellers are having a tough time selling their homes because of tight lending.  They need buyers and the banks to get their house sold and be able to move on. Life goes on.  Seller financing is a good tool for them too.

Who are these buyers?

• Anyone who is sellf employed.
• Anyone trying to buy a second home.
• Anyone with another property to sell.
• Investors who own other rental properties.
• Someone who has a new job.
• Someone who has had a bankrupcy.
• Someone who was way upside down and left their prior home to get out from under it.
• Someone who has had credit issues because of medical problem.
• And, of course, anyone who can’t ontain financing because of poor credit and the mishandling of their lifestyle and finances in the past.

All but the last group may have good income, a solid job, financial resources, and a change in their health for the better that allows them to be the same solid citizens they were before getting ill.  They are capable of making their payments on time and for the length of their mortgage. These people are the buyers that are a fit for buying a home with seller financing. If you are one of these people we can definately help you buy a home.

Around half the bankrupcies in America are related to medical problems. It is not the fault of the injured or sick person. It is a fault of our broken health care system to a great extent. Not everyone is covered. Not everyone can get coverage. Pre-existing conditions may not have been covered under your policy. In the current economy a job loss may lead to an extended period of time without coverage. Isn’t that the time things always happen?

What is seller financing? It is the seller of a property acting as the bank at the time they sell their home.  That seller will earn little interest on the cash they get out of the sale just putting it in savings.  They may even want the monthly income and the deferred income for tax purposes.

How does it work?  The seller reviews the credit report of the buer to see why they need this type of loan. They have the right to refuse the loan just like a bank would. But they do not have the tight guidelines to follow and may elect to grant the loan to the buyer. If the buyer and seller agree on the loan, the escrow company acts as the account servicing agent for both parties and handles the payments. There is a small fee that the buyer pays. The buyer is assured that their payments are credited toward the purchase. The escrow company also can collect the taxes and insurance monthly just like a regular bank mortgage payment does. The down payment requirement is based on the credit and reason for the seller financing but will be at least 10% to 20%.

The buyer may just need tome to be able to fit in the box of a regular bank loan. Maybe they need more time in their job or need to get a bankrupcy further behind them.  Their money may be tied up in a certificate of deposit. They may be expecting a large inheritance or payoff in the future. They may need to sell their existing home. Seller financing can bridge that time frame. The payments may be make as though the loan was for 30 years but the balance may need to be paid off with a balloon payment in 3 or 5 or 7 years. At that time you, the buyer, should be in better position to get regular bank financing. You may be paying a higher interest rate. But anyone who is at all outside the box with a bank also pays more for their loan. But there are savings too; no big fees up front or rolled into the loan total and no required appraisal or related fee. Any you can buy a property that may not be able to fit a typical bank profile too such a land or a manufacture home.

See http://allofprescott.com/seller-financing-for-buyers-and-sellers/ for a blog post about seller financing from a seller prospective too.

So there is a solution for all those who are outside the box for obtaining a mortgage. Seller financing is the key. We are experienced at structuring these arrangements in Prescott Arizona. We have the team of agents, inspectors, escrow officers, and accountservicing departments to put all the pieces together for you. You can own a home and not have to pay rent and a landlord’s mortgage. we can help you rebuild your life.  Just give us a call.

Jerry Germansen and C’Ann Simpson,  Associate Brokers eXp Realty in Prescott Arizona

928 632 3906

We have worked all our lives and look forward to retirement. It is a changing time in our lives that needs to be very calculated.  Most only get one shot at doing it right. It is important to plan ahead and make the right decisions at the right time. We can Help U, LLC is a Certified Senior Advisor group that can assist you in making the decisions that you face at this changing time. They advise you on finances and living arrangements.  They are advocates and can guide you through the process of retirement and the living arrangement that best suits your needs.

Arizona is known as a retiree’s state. Our exceptional weather draws folks from every part of the country. We have the facilities to make retirement a pleasure from the great outdoors to excellent libraries and colleges and sports like golf and tennis.  We also have great retirement communities and medical facilities.

 Retirement Communities

The Prescott Arizona area offer several choices of retirement community living if you choose that direction.  Consider the new Alta Vista  just being opened this summer. Las Fuentes Resort Village  is another local retirement living community in Prescott. Also available is Granite Gate Senior Living of Prescott.  Prescott Valley offers Grayson House. Good Samaritan  has a facility in Prescott as well.  The Peridot  is in Prescott too.  Highgate Senior Living  is opening in the summer of 2011.

The home you no longer need. Why keep it?

If you are looking to relocate into one of these retirement campuses it is important that you are well represented in the sale of your home. Our generation looked at our home as the resource to be used for retirement. At eXp Realty Jerry and C’Ann have assisted a number of seniors in the sale of their home in preparation for moving into retirement. We consider it a privilege to be part of your team at this time of life. We are there to protect your assets and structure a sale that gets you what you need and in a timely fashion. We often suggest Seller Financing  if you own your home free and clear. It provides you with steady income monthly and a securely structured payment system through our local title company, Pioneer Title Agency.  You will receive much more income monthly than if you just put the money in the bank.

Healthcare

Our area has multiple choices for health care facilities: Yavapai Regional Medical Center in Prescott, Yavapai Regional Medical Center East Campus in Prescott Valley, and our super V.A.  Hospital  located in Prescott. Of course just over an hour away are all the major facilities found in Phoenix and Scottsdale.

If you are considering making the move to retirement you need to put C’Ann and Jerry on your team. We will make it happen seamlessly and help you all the way. It is our job and our privilege.

Jerry Germansen 928-632-3906

C’Ann Simpson 928-848-1818

The system only requires a south facing roof area where to mount you panels. And it Looks Great too!

All the other equipment fits on about a  foot wide area of the grage wall. 

Why buy electricity generated by oil from the middle east when you can make it right at home from the sun for less that you are now paying? It feels great to see your meter spin backwards and know that you are doing your part to eliminate the use of fossil fuels for electricity.

The system is installed, guaranteed  and insured. It is monitored over the internet by the compny. They will know if any problem exists and call you to schedule a free repair visit.

For more info and ordering your free solar system while the rebates last, contact Jerry Germansen at 928-632-3906.

What does that mean? If you own a property free and clear (no mortgage lien on it) you have a distinct advantage in selling it compared to other homes that are on the market and that are your direct competition. That includes all price ranges too.

It also means that you will not get paid off at the close of the sale. You will receive monthly payments from the buyer with interest. Consider it cash flow income. If you do not need the cash out of the sale, you can earn a lot more interest than if you were put the money into a savings account or certificate of deposit. Banks are paying 1-2% interest. These financing arrangements pay an average of 7%. On a $100,000 bank deposit you would receive $166.67 per month interest. With Seller Financing at 7% you would receive $665.30 per month for 30 years. Sometimes a buyer may only need some time to repair their credit or have a job position long enough to qualify for a loan. In those cases we can have the entire loan balance payable as a balloon payment in 3 or 5 years.

The Seller Financing is accomplished using the Account Servicing Department of the title company. They receive the monthly payments from the Buyer and send you a check. They take care of the accounting and provide monthly statements to you and the buyer. We have the Buyer pay the set-up fee of about $200 for the servicing. They also pay a small fee every month as part of their payment.

You no longer own the property so you have no responsibility for the taxes or the other liabilities of ownership. The taxes and insurance can be collected by the Account Servicing Department monthly. They would then pay the tax bills and insurance premiums on behalf of the Buyer.

What is the risk? If the Buyer pays late there is a late fee added. If they default on the loan, you can foreclose and get the property back and sell it again. You even get to keep all the money they paid in before defaulting. The downside is some risk of damage to the property if you had to foreclose and take it back. The other risk is taking it back after a value decline. We minimize the risk by having the Buyer provide the Seller with a copy of their credit report. The Seller can deny the loan or accept it based on that credit report. Yes there are risks. However, the risk is usually outweighed by the return.

We recently sold 2 homes and have three contracts on another property by offering Seller Financing. All have found a buyer within 2 days! The phones are ringing. Seller Financing does not require an appraisal. They are sold “As IS”. One sold for over the asking price because of competition to get the deal by solid buyers who did not fit within the criteria required by a lender for a bank loan.

If you own a property “Free and Clear” you definitely should consider offering Seller Financing. It could quickly get you more for the property, more return on the money you have in equity, and provide a home for someone who is able to make the payments but can’t get traditional financing. There are a lot of those people out there that would love to buy your home.

If you have a loan on the property you cannot provide Seller Financing. Some agents structure a “Contract for Sale”. Those contracts give equity to the buyer and will cause your lender to call the loan immediately due.

Just make sure you are working with a Real Estate Agent who is knowledgeable in Seller Financing and can guide you through the process. We are experienced and knowledgeable. I have written many Seller Financing deals over the years. Be sure that the down payment is sufficient to cover all the closing costs of commission, title and escrow, so you come away with some cash. It may be the only way for you to dispose of the property in this economic time.

Jerry Germansen, Associate Broker

eXp Realty Arizona

928 632 3906

www.AllofPrescott.com

Dang birds! They just cost me $26 worth of pipe and netting. Bird netting specifically.  I attached a simple wood beam across the top of the garden boxes. Then I bent 3/4 inch conduit over the beam and slipped it over rebar into the corners of the box.

The netting is fix in place on the ends. I will not need to have access into the garden from the ends. The side sections lift to reveal my plantings. I have full access to each side for harvesting my veggies and berries. The dang birds don’t.

This should solve the problem  and was a very easy fix. Now I can have my beets and eat them too.

Gardening in Prescott Arizona with our mild weather allows me to plant early and often. I hope to get 5 crops from each square foot space and will plant seasonal plants as summer comes. The Prescott Country Club is an ideal setting. My garden overlooks the golf course’s 11 green and 12th tee. We are back far enough not to have to duck errant  shots.  That is unless I am approaching the 11the green.  But that is another story.

I have had to put a ball retreiver on the end of my putter so I don’t have to bend over to get my ball out of the cup. With so many shots to get it in there any assistance is appreciated. So I raised the garden up like a pool table. I can tend it without getting on my knees. Getting down there isn’t the problem. Getting back up is.

I celebrate(that is a joke) my 63rd birthday in just 2 weeks. The back is not that of a 20 year old any more. So laugh at my raised bed square foot garden if you have to. Your turn will be coming very soon.

www.allofprescott.com  For Property info in Prescott

www.prescottcountryclubsite.com For country club homes

Jerry Germansen 928 632 3906

I spent the last week building a Square Foot Garden raised to a height so I will not need to bend over. It has a 3/4 inch plywood bottom with drainage holes every foot or so.

I will be putting in the soil materials today and dividing the 4 foot by 8 foot areas into 1 foot squares.   I started composting a few weeks ago. It was at the time I was pruning the roses and ornamental grasses in the yard. I added kitchen scraps too. Only add scraps of fruits and veggies plus coffee grounds and their paper filters. And add all the yard waste organic materials too. It is amazing how much of that material can be composted for the garden. It saves landfill space and makes a great soil. It gets me off the couch and active too.

The Square Foot Garden is an interesting concept. It was developed by Mel Bartholomwe  years ago. He has written a couple of books about it and even had a Public TV show featuring his efforts and results. This garden is expected to produce 5 times what a regular single row garden will do because of the design, layout, and soil.

The soil is the real key. The garden is only 6 inches deep ( I made mine 8 inches for good luck).  It is a mix of 1/3 compost, 1/3 peet moss, and 1/3 vermiculite. You will never have to fertilize it or till it. It will remain loose and moist. I do have an irrigation line right in the garden area that I will hook up in a week or 2. Until then I’ll water with a hose. This soil mix will take much less water too. It is built from water retaining parts.

I can start planting now.  Beets, cabbage, spinach, radish, potato,  mint, and onion will take any remaining morning  frost rather well. I’ll start some now and then again in 2 weeks so I have a continuous supply for an extended time.

Trips to the grocery store will be ,much less expensive and fewer. I’ll have organic daily fresh veggies and fruits all the time. It’s a great way to have a healthy diet and a fulfilling pass-time too.

I’ll post more as the garden takes shape and make some observations and suggestions. Until then, keep composting!

The government allows us to put money aside for old age in Investment Retirement Accounts. Did you know you can do more than keep it in a mutual fund, bank account, or in individual stocks? Most people think that those are the only investment vehicles allowed. Not so. The IRS says that you can place you IRA in any investment except collectables or life insurance.

I am not talking about closing your IRA and taking an early withdrawal penalty. The key is changing to a Self Directed IRA where you control where the money goes.

Here are some things you can do with your self directed retirement account:

• Invest in Real Estate by paying cash from the account.
• Your IRA can take a loan out as a mortgage
• Your IRA can become a partner with another IRA or another person
• You can make a secured or unsecured loan to someone or a company
• You can invest in a company or partnership
• You can invest in a retirement property now and rent it out. Convert it to your retirement home in the future.
• Buy stocks or bonds like with any other IRA account
• Buy a commercial building or business anywhere
• Buy a rental property in a college town

Here are some things you are not allowed to do under IRA rules:

• Make loans to close family members
• Own IRA property and rent to family members
• Buy a collection of antique cars or art work
• Buy a second home for your own current use (may be converted to personal use at retirement)
• Buy life insurance

Why am I writing this? Because your stock broker is not going to tell you about it. He makes money every time you make a trade. Since you can still buy and sell stock in a Self-Directed IRA with a phone call to the trustee.

What is the real advantage to holding your retirement funds in a Self Directed IRA? You can invest in things that are more tangible than stocks. You can tough and feel land. You can walk into your rental property. You can control a business you are directly invested in.

A Self-Directed IRA trustee will have guidelines to lessen the risk and make sure you have the funds to do what you want to do. They have CPA’s ready to answer your questions and assist you.

Jerry Germansen, Associate Broker, eXp Realty Arizona

www.AllofPrescott.com 928 632 3906

Oh No! Here comes the plow again!

reshoveling what the wind blows back, then reshoveling what the plow puts back. Car stuck. Car hit by plow. Car hits your other car. Car buried. Broken leg falling while shoveling. Where is the car. Driving through snow tunnels called streets. Can’t get warm without a warm bath. Frozen hot water pipes. Frozen boogers stuck in mustache. Beer frozen in garage.  Frozen water pipes, can’t thaw beer. Glasses fogged over. More snow tomorrow.
Are we having fun yet? Chicago Blizzard…Think Prescott Arizona.
Think Prescott. It is in your future. Seed planted!

Jerry.Germansen@SeearchonPrescott.com eXp Realty 928 632 3906 Start Now!

We have now melted and the course is open again. Play this time of year is great. No long waiting. Noboody rushing you.

Although the trees are dormant this time of year, you can still enjoy a great course for small cost.  And the course remains in very good condition for winter.

If you are a golfer of just like to walk the neighborhood, we have a great location for you.

Book your tee time right on our website. http://prescottcountryclubsite.com/community-resources/golf-tee-times/

Our 4 mild seasons are now returning to normal. We expect mid 50s to low 60s later this week.

Jerry Germansen, Associate Broker, eXp Realty