Lynne Connelley Bend Real Estate

In looking at the MLS listings in Bend that are for sale that were on our tour this morning, a few stand out as some excellent values of Bend, OR, homes for sale.

There were some outstanding homes in downtown Bend.  One is a fabulous remodel of a 1925 home with a cute fenced yard out of Sunset.  It is cute, updated and in a location-to-die-for backing to a couple of great restaurants.  Luckily, both restaurants are only open for breakfast and lunch -- no loud evening diners!  If you want to live in the heart of the action, this is it -- for $389,000.  Maybe a little high, but an unduplicable location.  Didn't someone say once Location, Location, Location??!!!

A second downtown home is a new home in an equally prime location.  Interestingly, it is currently set up so that the master suite is a vacation rental, so this could be a home or an income producing property for you in the heart of Bend.  Beautifully done.

A third home downtown ON THE RIVER is actually TWO homes.  This new home that could easily be featured in Architectural Digest with its slick black concrete floors, exquisite cabinetry and wood trims, wood floors and simple but elegant furnishings.  Actually, the lower level is a complete home with 3 bedrooms and 2 bathrooms, currently rented out as a vacation rental.  The upper level is a 3 bedroom, 2.5 bath pied a terre that also could be a vacation rental.  And best of all, both have access to a private boat dock on the river.  And the entire home is being sold furnished.  Walk into this exciting investment today!  Give me a call to see it.  Under $1,500,000.

And finally, a couple of great buys in the upscale gated golf course community of Broken Top, one a single-level golf course home that needs some updating but is priced superbly at under $600,000 and the other a townhome for under $500,000 with one of the most private settings I have seen in Broken Top, and yet it overlooks the golf course.  Beautiful.

Not all homes in this market are a great deal, and I certainly saw some today that were not, but these lovely homes at reasonable prices were well worth viewing, and I would love the opportunity to show them to you.

Many people are shocked to hear that 100% financing still exists, but it does!  The USDA (United States Department of Agriculture) offers loans directly funded by the government to assist low income individuals and families obtain homeownership in rural areas. The state of Oregon has many cities that qualify for this financing including locations in Deschutes, Jefferson and Crook counties.

The loan is a 30-year term with promissory note interest rates set by the lender. As stated, there is no required down payment, and borrowers can use a seller credit to pay for loan closing costs and prepaids of up to 6% of the sales price. There is no mortgage insurance unlike FHA financing, but a 2% funding fee which can also be financed applies.

Applicants' income must not exceed 115% of the median income for the area to qualify for this loan program. The lender determines the repayment feasibility by taking into consideration family income to debt ratios and credit history.

Although this program is designed to help first-time homebuyers, this is not a requirement.  However, the borrower cannot own any other home.

Please contact me today if you would like to see if you and your desired property are eligible for a USDA 100% financing mortgage.

Contributed by Dana Bruce, a member of my Resource Team for buyers with whom I am working.  She can be reached at: 

The MLS in Bend with hundreds of homes for sale and dozens of farms and ranches is teeming with value.  But many are looking at the current prices, shaking their collective heads and declaring that the economy and, with it, the real estate industry is still in freefall.  Well, let's join author and financial adviser Robert Kiyosaki as well as many other financial experts who predict the best time to invest in real estate is NOW!

Let's look at the cycles Kiyosaki and others observe. 

1.  Financial Disturbance.  Such as the invention of the Internet, 9/11, war, etc., which creates a new wave of events that include outside shock, news that creates a disturbance, war, technology, and a new monetary policy which results in the government pumping money into the economy (i.e. lots of money is now available)  Year 2001

2.  Expansion.  Prices start to rise, which results in the combination of both easy credit and greed beginning to set in.  Years 2002 and 2003.

3.  Euphoria.  Future returns are overestimated, there is a lack of concern regarding the fundamentals, "fools rush in," and speculation becomes commonplace.  Year 2005

4.  Prices Reach a Peak.  At this point, market strength becomes fragile, cheap money becomes scarce, insiders are taking the profits and the greatest fools now rush in (March 2006)

5.  Market Reversal.  This is where prices begin to fall and speculation comes to an end.  Years 2007 into 2008

6.  Financial Crisis.  Panic ensues throughout industries, bank lending tightens in response.  Year 2008

7.  Lender of Last Resort Comes to the Rescue.  As we have all watched occur over the past weeks, Congress steps in, printing too much money and bailing out businesses and individuals, and this signals that the bottom of the cycle is now.  BEST PHASE TO BUY!!!

It is clear to those keeping an eye on the current condition of the US economy and the recent steps being taken to correct it that we are now in the 7th stage -- which is the best time to take advantage of the pricing and financing opportunities that are anticipated to be available only for a limited period of time.

Source:  Robert Kyosaki (Yahoo Finance "date"), paraphrasing Nobel Laureate Hyman Minsky's "Seven Stages of a Financial Bubble"

You have cash, that wonderful stuff of which great investments are made, and you know that investing in real estate in Bend is a sound long-term decision.  One small problem, or so you think:  That lovely cash is sitting in your IRA, and you know you can't buy real estate with it.  How do you know?  Because you asked the company that administers your account if your IRA could own real estate, and they said, "No."  WRONG!!!!  The administrator should have said instead, "Yes, but not with us." 

Your administrator is not set up to handle real estate, so they have no incentive to say yes, but retirement accounts can own real estate!

First step:  Establish a self-directed retirement account with a company that specializes in real estate IRAs.

There are things you can do with this new fund and some things you cannot do.

You can:

1.  Buy and sell many types of real estate including raw land, rental properties, condos, fixers, commercial property, etc.  The IRA buys, owns and sells, not you personally.  The custodian of the IRA buys the property in the name of your new self-directed IRA.

2.  If the property is rented the income must come to the IRA, not to you, and the expenses must flow in and out of the IRA as well.

3.  Financing must be "non-recourse," which means the property and not the IRA is the sole security for the loan.  This requires seller financing or private loans.

4.  Your real estate IRA can buy a partial interest in a property.

You cannot:

1.  Buy a property that you, your spouse or certain family members already own and cannot sell a property it owns to you, your spouse or certain family members.

2.   You, your spouse or certain family members cannot have any personal use of the property owned by the IRA and cannot lease it to your business.

So SHOULD you use your IRA to buy real estate?  Probably not if you want to use the depreciation deductions offered by rental property because it will be wasted in your IRA.  Raw land, fixers and rental property with no loan are perfect candidates.  If your real estate IRA buys, owns and sells the property, the profit would compound in your IRA tax-deferred or TAX FREE if it's a Roth IRA!!!

Of course, you need to do your homework.  Analyze carefully the operating expenses and income, cap rates and other rates of return and the depreciation.  Give me a call if you want help with that analysis.

And give me a call if you would like a list of real estate IRA custodians.  Also, a good read is "IRA Wealth" by RIce and Dirks.

HAPPY INVESTING!  Time was never better to achieve great long-term gains.

**** I am not an attorney or accountant, so please consult an expert on your particular situation before taking any action.

As is happening nationwide, we in Bend are experiencing foreclosures in record numbers.  I have looked at sales in December, January and February to see if the number is actually increasing.  It is.  For instance, in December 2008 12 of the homes sold in Bend, whether on small lots or acreage, were bank owned.  In January of 2009 that number doubled to 23, and in February, a shorter month, there were more bank owned homes that sold, up to 26.

In the not-so-distant past we were hard pressed to find homes for sale under $200,000, but now there are over 200!  This does not include farms and ranches in this price range, but there are buys galore (see previous blogs) in farms and ranches in Central Oregon. 

In December, prices of foreclosed homes that sold ranged from $111,000 to $459,900; in January that number was $100,000 to $515,000 -- a huge 3,400 sq ft beauty -- and in February homes ranged from $110,000 to $600,000 including homes in Broken Top, Northwest Crossing and homes with acreage.  Price per square foot, interestingly enough, actually INCREASED from $114 in December to $122 in January and February.  Days on market also increased from about 2 months in December to 3 months in January and February.  Since average days on market is currently over 6 month for non-bank owned homes, you can tell banks are offering great deals to get the properties off their books.

Please call me at 541-383-4352 or email me at Lynne@LynneConnelley.com to be emailed current listings that are bank owned and new listings as they come on the market.  As a colleague of mine said today, "I wish I had cash!  There are screaming deals out there!"  I agree.  These are the days we will look back on and say, "I could have bought that cute downtown bungalow for $200,000."  This is the chance of a lifetime.  Your lifetime.

If you have always wanted your own gentleman (gentlewoman?) ranch, now is the time to grab your piece of the West, your own farm or ranch in Central Oregon.  Deals abound.  Bend, Oregon real estate continues to produce amazing deals, so pull on your boots, dust off that cowboy hat and reach for your computer.  Then give me a call to find that perfect spread.

How about a 40-acre ranch fenced and cross fenced near public lands with a lovely home, Cascade views, irrigation, indoor and outdoor arenas and income stream in place for horse boarding and training?  Under $800,000?   Yes, it's true. 

How about a couple of acres in Tumalo with irrigation, views, a small house and under $250,000?  Too good to be true?  Give me a call right away to see properties in the country waiting for you now.

Great buys, great properties!  Come and get it!  Call me now at 541-408-6720.

Today I showed a lovely home which seemed like a good buy at $200,000 -- 3 bedrooms, 2 baths, a quarter acre lot, fairly new, great floor plan.  Problem?  One small one -- it backs to a very, very busy street, and in the back yard you could not only hear but see the traffic.  You had to yell to hear over the traffic.  So even at $200,000 it is overpriced.  A possible buyer?  Perhaps someone who is hard of hearing -- or who never goes out back or opens their windows!  I hear there is a buyer for every property, but one does wonder.

A great buy, however, just came across my email system -- a beautiful ranch across from public lands on about 40 acres, indoor arena, irrigation set up in the many paddocks, two outdoor arenas (one is large enough for events) and a gracious home perfect for entertaining -- all at below $800,000 at a JUST REDUCED PRICE.  It is a ranch with which I am familiar, and I have spent many hours there playing with my horses and riding with friends.  It will be sad to see our friends leave.  But someone is going to get a fabulous DEAL!

And stay tuned for some amazing DEALS on resort lots in Pronghorn!!!!!

Since I have seen some gorgeous ranches for sale lately in the Bend area, I thought I would review what is on the market for you and what has sold.  My criteria is ranches in Bend with indoor arenas.  I used that because ranches with indoor arenas generally are higher end and have excellent horse facilities including pastures, barns and fencing.

There have been no ranches in Bend fitting these criteria that have sold since September 1 of this year, or about the last 100 days.  There are, however, 13 on the market.  These range from $699,000 to $4,500,000, so I will break that down for you.  What do you get for $4,500,000 that you don't get for $699,000???

The $699,000 ranch is actually well located near the Badlands Wilderness Area, so trail riding is a breeze.  The house is older and under 2,000 square feet and older, but the horse set-up is excellent with indoor arena, outdoor arena, stalls with paddocks, good fencing and 40 acres of land. 

On the other end of the spectrum, the $4.5 million training ranch has in-your-face views of the snow-capped Cascade Mountains, about 40 acres of land that is fenced and cross-fenced with Kentucky-style white fencing, many loafing sheds in the numerous pastures, huge indoor and outdoor arenas, huge show barn with heated grooming stalls and wash racks, hot walker and a magnificent 4300 square foot single-level home with in-floor radiant heat and a fabulous kitchen.

In between these two Bend ranches, you will find a professional horse boarding operation also located next to public lands for trail riding and a 3200 sq ft home.  Hone your roping skills on one ranch -- also with excellent views of the Cascades -- which has a roping arena with return alley and chute plus a lovely 2500 sq ft home.  One ranch offers a professional woodworking shop along with the beautiful 3700 sq ft home, Cascade views, dressage court, guest quarters and 120X80 indoor arena.

On the south end of Bend near national forest you will find a ranch with a newer 3000 sq ft home on over 18 irrigated acres for growing your own hay and for grazing animals.  In addition, play with your critters year round in the covered facilities with 20,000 sq ft under roof.  Cascade views?  You bet!

Prime country property is located in Tumalo, west of Bend, and you can find for $1.8 million a stunning Western style home on almost 20 acres, breathtaking views and premier horse facilities including arenas, barns and pastures -- all located next to government land for endless riding and walking.

Need elbow room but want to be minutes from downtown Bend for theater, concerts and the action that is downtown Bend?  How about over 76 forested acres with a magnificent professional horse facility nestled among the trees?  This is a true state-of-the-art facility located in a park-like setting with gated entrance leading to a 140X280 outdoor arena, 15 paddocks, hot walker, 30-stall barn -- you should see the line of wash racks! -- and an indoor arena perfect for whatever eventing you choose and an enclosed lounging area to watch the show.  The lovely home is about 4,000 square feet and has country charm and lots of light.  This ranch started at just under $4 million and is now $2.6 million.  We even have trouble FINDING 76 acres in Central Oregon, let alone such a spectacular setting close to town with these facilities. 

So if you are looking to mount up and ride into the sunset with your ponies in style, farms and ranches in Bend OR are calling out to you!  Saddle up!  I would love to show you around.