COZY CABIN LOCATED IN A PRIVATE WOODED SETTING WITH BEAUTIFUL CREEK LARGE BLUFF ROCKS & FIRE PIT. ADDITIONAL 5 ACRES AND STUDIO CAN BE PURCHASED FOR $35,000.

Foreclosures are prominent.  People are simply not making enough money to pay for their homes.  They are being forced to move.  Immediately buying a new home is out of the question.  Moving out of town comes with high costs, both financially and emotionally, especially if the owner has a job and a family. 

The only financially viable option for most victims of foreclosure is renting.  As an investor, an important factor comes into mind.  What counties have the most foreclosed homes?  According to www.RealtyTrac.com, Benton County contains the most foreclosed homes in Arkansas with Washington County coming in at third.  McNaughton Real Estate’s website, www.allNWAhomes.com, has accounted for over 1,000 foreclosed homes in Washington, Benton, and Madison County.

The availability of foreclosures are evident, but what about the demand?  Having multiple, massive corporations such as Tyson, JB Hunt, and Wal-Mart stationed in Northwest Arkansas creates a significant inflow of rentals.  In addition, Arkansas’s flagship university, the University of Arkansas, in Fayetteville continues to pull renters throughout the world with this year being a record-breaking enrollment count for the university.

If the demand isn’t enough incentive to invest, then consider the quick return a rental property can provide.  With historically low interest rates, hovering around 4%, and low prices, NOW is the time to buy.  The increase in demand has also provided a healthy increase in rental prices. 

Inevitably, real estate investors gain a sense of pride in owning something tangible like land and/or a house compared to owning a small sliver of a corporation that stocks give.  These investors also have greater control in managing the value of their assets with the option to enhance, add-on, and renovate their property.  In addition, many real estate investors feel compassionate about offering an affordable home for families in need of shelter during this economic dip.

For everything that has a pro, there is always a con.  Many investors find it difficult to make time to search for quality tenants, have access to a network of contractors for maintenance, and be available for major and minor emergencies.  Fortunately, McNaughton Real Estate can alleviate the stress with their expertise in property management.  With McNaughton Real Estate you can expect:

• A Property Management Team with 25+ years of experience whose primary focus is to protect your investment.
• A vast network of local contractors, which can help you find the most cost-effective bid.
• A quality tenant due to helpful insights with our credit and background checks.
• Inspections to ensure security in your investment.
• A 24/7 maintenance request line.
• Abundant leads with our strong presence on the Internet and with our 35 years worth of referrals. 

We want to help maintain your focus on building your portfolio.  Allow us to protect what is yours and to advise you on any new opportunities that hit the market.  A professional Certified Investor Agent Specialist will be here to help you every step of the way.  

1. Get a Pre-Approved letter.
2. View the Property with a McNaughton Realtor®.
3. Submit your Bid.
4. Submit your Contract Package to Asset Manager.

Not only is it that easy, we’ll do steps 3 and 4 for you!  Don’t let the buying process keep you from a great investment.  Check out all the HUD homes in Northwest Arkansas at www.allNWAhomes.com and give us a call!

1297 Deerfield, Fayetteville

Rent: $895

Deposit: $700

• 3 Bedrooms
• 2 Bathrooms
• 2 Car Garage
• Pets: Negotiable
• Split Floor Plan
• Covered Back Patio

Directions: Head south on N College Ave toward E Masonic Dr.  Turn left onto E Township Rd.  Turn right onto N Crossover Rd.  Turn left onto E Huntsville Rd.  Turn left onto Deerfield Way (Destination on the left.)

424 Malinda, Fayetteville

Rent: $800

Deposit: $650

• 3 Bedrooms
• 2 Bathrooms
• 1 Car Garage
• Pets: Negotiable
• Fireplace
• Back Porch

Directions:  Head south on N College Ave toward E Masonic Dr.  Turn right onto E Appleby Rd.  Take the 1^st right onto N Wayne Dr.  Turn left onto E Village Dr.  Take the 2^nd right onto E Malinda Dr (Destination on the left.)

747 Richland, Elkins

Rent: $825

Deposit: $650

• 3 Bedrooms
• 2 Bathrooms
• 2 Car Garage
• Pets: Negotiable
• Fenced Backyard

Directions: Head south on N College Ave, turn left on E. Township, turn right on N. Crossover, turn left onto AR-16/E. Huntsville Rd, turn right onto Oakwoods Drive, take the 1^st left onto White River, take 1^st right onto Richland Creek Road (Destination on the left.)

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

Source: Krista Franks, dsnews.com, 1/24/2012