About Cochise County, AZ

Topic: Financial and Estate Planning Facts
Guest: Karen Justice, Owner of Justice Finacial in Bisbee, Arizona

Download this episode (right click and save)

03/05/09 Welcome back to Open House with Brad Snyder on KTAN 1420am. Today we have Karen Justice, from Justice Financial in the studio to talk about financial and estate planning.

Brad Snyder
Sierra Vista REALTOR
Sierra Vista Property Manager
Sierra Vista Radio Host

www.BradSnyder.com or www.sierravistarealtyaz.com

Topic: Interview with Assistant City Manager of Sierra Vista
Guest: Mary Jacobs, Assistant City Manager for the city of Sierra Vista, Arizona

Download this episode (right click and save)

02/28/2009 Today we have Mary Jacobs, Assistant City Manager for the City of Sierra Vista in the studio to what’s happening at the city.

Brad Snyder
Real Estate and Property Manager in Sierra Vista, Arizona

www.BradSnyder.com

This seems to be the question of the day. Everyone wants to know when it's safe to "get back into the water" with real estate. Problem is, no one really has the answer to this question.

Real estate has been and always will be all about location, location, location. So, even though many parts of the country (and world for that matter) still have dismally slow or even nonexistent real estate markets right now, there are parts of the country where things do seem to be picking up a bit. And, everywhere, there are tremendous deals to be had. So, even though everyone seems to want to get in at the bottom of the market, just like the stock market, no one can every really be sure we're at the bottom until we start coming back up.

I suppose the bottom line is now exactly the same as it has always been...if you find a great property that you really like and you can afford it or arrange affordable financing for it and it is at a good price...buy it.

One good thing that is happening in many real estate markets across the country is the return of seller financing, also known as owner carry-back financing. For people who are either lacking stellar credit or lots of money to put down, this can really be a terrific thing. The downside is that the interest rates are generally a bit higher than you could get at a bank and the terms are normally a bit shorter as well. However, the upside is that many people can buy property they otherwise could not purchase and the seller can sell a property that they otherwise may not have been able to sell.

This type of financing is more plentiful with vacant land, however, we're seeing it more often with manufactured homes and even site-built single family residences. So, even if the listing does not specify that the owner will be willing to do this type of arrangement, it's worth asking. All they can do is say 'no' and they might just say 'yes.'

There are some tremendous deals right now in real estate for those looking for investments. Talk to your agent to find those that will work for you.

Cochise County land price has stabilized around 60% of the peak market prices. Farm land and ranch land properties that were being sold for $3500 above in Cochise County in 2005 now could be bought for around $2000 per acre. Further price drop is unlikely for couple of reasons:

• At $2000 per acre, farm land becomes economically viable for agricultural use.
• A large number of the over-priced land acquisitions are funded by owner carry-back financing where the seller holds the deed of trust. When the credit crunch hit the market and when a large number of these speculative buyers became unable to repay the loan, the sellers often offer the buyer the option to sell back to the lender (original seller) using Deed In Lieu of Foreclosure. This will help stabilize the land market in Cochise County because:
  • After the majority of speculators sell (revert) their land back to the original seller, it is unlikely the original sellers will give much more discount to sell their land. They have collected a few years of loan payments and the down payment (usually 20% of the sales price). They have no reason to further discount the land unless there are unusual circumstances.
  • Agriculture lease becomes profitable and more popular. The original sellers will very likely to be willing to lease their land for agriculture use to generate steady cash-flow. Since the original sellers now have free and clear title to the property with NO debt, they are more willing to negotiate with farmers or ranchers and give them favorable lease terms. This will prevent them from discounting the land further and sell them for cheaper price.
    

As a result, Cochise County land prices will likely to stabilize at the current level. Cochise County has unique combination of factors which will enable it to be a fast growing region in Arizona. These factors include:

• Hwy 191, a future major truck route from Mexico, through United States, all the way to Canada.
• The US-Mexico border. Douglas is primed to be a major transportation hub.
• Defense industry. Fort Huachuca, outside of Sierra Vista, is the nerve center of U.S. military intelligence services. Davis-Monthan AFB in Tucson is only 30 minutes away. The vast land available in Cochise County provides unique opportunities for future defense industries such as unmanned aerial vehicles (UAV) and other air and land systems.

We crossed the state line from New Mexico into Arizona yesterday at about 4:00, coming home from GlenMar Ranch in Oklahoma. It wasn't long before we could see the smoke of a wildfire in the distance. I called 911, and they put me in touch with State Forestry.

I pulled over at the exit nearest the location of the fire to take photos. I emailed this and one other to KVOA Channel 4, and made the 10:00 news!

The fire is on BLM land near the ghost town of Dos Cabezas. As I write this morning, I don't know the outcome. The wind was blowing pretty hard yesterday afternoon.

When I find out more, I'll let you know.

_______________________________

I'm Mike in Tucson, your preferred Tucson, AZ Mortgage lender.

Think of me as your Tucson expert. Call me for more info on vacationing in Tucson.

Or call me if I can help you with a purchase or refi mortgage;
(520) 349-9090

Photos copyright Mike in Tucson. All rights reserved.