Real Estate Investors Association of Greater Cincinnati


Why Private Money Rocks

0
Comments

 

This topic is near and dear to my heart. When I started my RE career, I heard about the necessity of finding private lenders. In fact, I even found two. But then I stopped. For four years I PROCRASTINATED. I didn't get it!!! For four years I continued to go to banks and jump through their hoops. I also had used hard money lenders but found them VERY expensive.

It wasn't until I quit my J.O.B. and found that banks wouldn't loan me money that I realized that I needed to bring private lenders into my life quickly.

When I took that step, everything changed for the better.

What are some of the advantages of using private money for your real estate investments? Well, if you haven't decided whether or not to use private money, I decided to lay it on the line here for everyone to see.

  • You can get money fast & you can buy at a discount.
  • No credit check & doesn't show up on your credit report.
  • Unlimited funds
  • Control because you set the rules.
  • Help your friends, family & associate. Meet a great group of people. Read More...


The Importance of Accountability in Reaching Your Goals

Community of Real Estate Entrepreneurs

1
Comments

          I think that for almost everyone, there are 2 sets of priorities in life: the things you HAVE to do (go to work, clean the house, pet the dog, pet the husband, etc) and the things you don’t have to do, but which bring much greater long-term rewards (flip enough deals to quit the job, buy a house, train the dog, train the husband).

          The first set of goals is relatively easy to accomplish, if only because day-today life doesn’t proceed very well without them. The second set is more difficult, because, in all honesty, your life won’t change much if you don’t flip a house this week. That particular lack of change should, of course, be viewed as a BAD thing, but if everything else is going OK (you haven’t lost your job or been faced with a giant medical bill or something), it’s not a bad enough thing to spur you into action next week.

          In an already-full life (which I think most of us would agree that we have), it’s often difficult to find the time to do something that will eventually lead us to a better life; it’s so much easier to tick off the “must dos” and put off the “wanna dos” until tomorrow.

The Must Dos in Your Life vs. the Wanna Dos

          For example, th
Read More...


Myths about Land Trusts

South Jersey Real Estate Investors Association

0
Comments

Myths about Land Trusts

By: Mr. Land Trust®, Randy Hughes 

I write and teach a lot about the many benefits to using a Land Trust to hold title to real estate investments. There is a lot of misinformation in the marketplace about Land Trusts and a lot of bad advice given regarding these title holding trusts. After using these trusts for more than 40 years, I have found that the myths outnumber the facts. In this article I will dispel some of the myths that I hear over and over.

MYTH: Only bare land can be put into a Land Trust

TRUTH: Any real estate (or real estate related asset) can be titled in a Land Trust

Read More...


How to Build Your Dream Team of Contractors

0
Comments

 

          In my business of rehabbing and reselling house, it’s impossible to make any money without the right contractors: those who get the job done on time, on budget, and right.

          Novice retailers usually don’t have such people at their fingertips, so how can you build a team of good contractors? The answer is by following all eight of the critical prescreening steps below.

 

Ask the contractor how long they have been in the business. I prefer at least five years of experience in the trades. I want a contractor who has seen and repaired every strange, odd, and crazy thing that could be wrong with a house. Experienced contractors know how to estimate all tough projects and experienced professionals can give an accurate price to fix any problem.

Inexperienced contractors, on the other hand, under-estimate repairs to get the business, and then they try to push their mistake on the property owner by upping the price halfway through construction.  When this happens, you need to stand firm and say no. NO is the most powerful word in the dictionary, and a rehabber needs to use this tool.&nb
Read More...


When to Lease/Option, When to Buy Subject To

0
Comments

 

Lease Options and Subject Tos, aka “Getting the Deed” are two very popular ways to purchase real estate with little or no money down. Acquiring investment real estate can be handled with many different approaches, but these two techniques can be implemented with little or no money down in most incidences.

A lease option is a technique which involves gaining ‘control’ of a property, but not owning it.  It is the right to possess a property now and purchase that property at some future date with terms you define when you buy it.

A “Subject To” is getting the deed to a property without getting a mortgage for the home.  Instead, the seller signs over the deed to his home ‘subject to’ the existing mortgage. The buyer in this case makes the mortgage payments on the old loan but does not need to get a mortgage themselves to acquire this home.

Both of these techniques usually require little or no money down.  In both of these techniques it is possible for the buyer to get money from the seller or the purchaser (or both!) in the beginning of the transaction.  These techniques, when used properly, will provide for huge profits.  They are both awesome and when used hand-in-hand by invest
Read More...


Creative Purchasing Strategies Using Wholesalers

San Diego Creative Investors Association

0
Comments

 When it comes to acquiring properties, rehabbers have different potential avenues to pursue for good deals: buy direct from property owners, purchase from a wholesaler (who is flipping the contract to you via assignment or a double close), buy at auctions, etc.

 When a wholesaler flips a real estate contract, he is transferring the rights of a purchase agreement to another buyer (you). The process involves finding a property for sale, signing a contract for the real estate, then flipping that contract to a new buyer to make a profit.

 Rehabbers looking for good real estate leads, i.e. identifying motivated sellers who are prepared to sell  their property below current fair market value, can be very expensive. High qualify leads can cost hundreds of dollars each. Unless you have a highly sophisticated lead-gathering system in place, you can spend large amounts of money and wind up with bad or no results. So, one big advantage of buying from wholesalers is that they do all the legwork finding deals, for which you pay them a fee. That way the rehabber can concentrate on what he does best: rehabbing (repairs, painting, cleaning up).

 A. Dealing with Wholesalers

Suppose you find
Read More...


I FINALLY Understand What “Financial Friends” Are...

Community of Real Estate Entrepreneurs

0
Comments

For decades, I’ve heard Pete Fortunato going on and on about his “financial friends” and “allies” and how important they’ve been to his enormous success in the real estate business.

As a relatively new investor, my limiting thought was, “Great, Pete, you’re a million years old [he was probably 45 at the time] and you’ve been doing this forever, and you have rich friends who’ve ALSO been doing this forever, who know that you’re super-experienced and able to perform.

Also, you’ve helped them with YOUR money or deals, so they help you with yours.

What in the world has this got to do with me? I don’t have the track record or the relationships with people with money that you have, nor the money to help THEM with THEIR deals, so move on and tell me how to buy houses with no money!”

Because I Just. Didn’t. Get it.

I thought that a “financial friend” was something like an actual friend or family member, who might, I don’t know, give you a loan at 0% interest just to help you get your first deal—a sort of angel with a checkbook who’d do whatever it took to get you the money you needed.

Or that it was a person in a mental rolodex of people who had money—like private lenders, or hard money lenders—who could be ‘convinced’ to give it to you IF you qualified and IF yo
Read More...


What’s Better Than Debt Free

0
Comments

 

Brandon and Amanda Neely are the President and CEO of Wealth Wisdom Financial. They make financial planning more accessible through podcasting and through developing personalized financial strategies for individuals and couples, as well as profitability strategies for small businesses. They work virtually to help real estate investors all over the United States to create smart, stable financial futures. They reside in the Oakley neighborhood of Cincinnati.

“A banker is a fellow who will lend you his umbrella when the sun is shining but wants it back the minute it begins to rain.” - Mark Twain

Ain’t that the truth? Now, let me ask you one of the most powerful questions, “What’s the economic forecast?”

As investors, we’ve been taught to use “other people’s money” (OPM) as leverage to help us gain traction in real estate. Another powerful question: when OPM is your strat
Read More...


How to Insure Your “Subject to” Property

0
Comments

 

Insurance for “Subject To” properties is a commonly misunderstood challenge.

A “Subject To” deal is when you agree to purchase a property subject to the existing mortgage along with all other liens attached. The existing homeowner deeds the property to you and you take over making the payments to the lending institution. You do not assume the loan through the bank. It’s a popular creative investment strategy for real estate investors.

When it comes to insurance for “subject to” deals, some rules of thumb usually apply:

  1. If you (or your entity) own, or have a financial “stake” in the property, be the “first named insured”. The first named insured is the primary recipient of any potential claim benefit or liability protection only.
  2. A “loss payee” will have its interests protected in the event the property itself is damaged (a mortgagee is inherently BOTH).
  3. If you decide to keep the “homeowner’s” policy in place and be named as the additional insured, be advised: if it is discovered that the ex-owner, the first-named insured
    Read More...


An Introvert’s Guide to Seller Negotiation

0
Comments

 

Try not to roll your eyes too much when I say this: I was scared shirtless of seller negotiation for YEARS. It’s absolutely true: I have a constellation of nature and nurture traits that make my choice of professions kind of hilarious.

I’m waaaay on the end of the introvert/extrovert bell curve. My Meyers-Briggs profile is INTP. My DISC test says that my “I” is a 25 out of 100. If you don’t know what any of that means, it means that I am naturally extremely introverted.

Add to that the fact that I have a tendency to get very anxious over uncertainty—I try to run every scenario and every outcome mentally before I do anything—and you don’t exactly get a recipe for someone who’s a “natural negotiator”.

In the beginning, before I really understood seller psychology, or how to deal with the objections they throw out to offers, or, for that matter, how to deal with rejection without feeling like I must have messed up somehow, I literally lost, I don’t know, hundreds of deals to the fact that I couldn’t get out of my own head long enough to actually tell sellers what I’d like to pay them for their houses.

Drew LOOOOVES to tell the (sadly, true) story of m
Read More...