Real Estate Investors Association of Greater Cincinnati

 That is the question every rehabber asks himself/herself.  Many cities and states don’t legally require that all contractors be licensed (though most require that plumbers, electricians, HVAC contractors, and the like are). But even in places where a license IS required, there are plenty of unlicensed folks who are happy to do jobs ‘under the table’.

The natural thinking among real estate investors is that we can save money by not using licensed folks: that if I use a licensed contractor the job is going to cost me more money.  

Yes, I have asked that question myself.  And I have tried to cut corners by hiring the “handyman” who is not licensed.  Here are a few of the results I have seen.

1. On an early project I discovered the contractor who was doing excellent work, had a cooler on the job.  I didn’t think much about that until I noticed beer cans on the job site.  So, I dropped in one day unexpectedly and discovered my contractor was drinking beer on the job.  When questioned, he replied, “I’m doing fine.  I am perfectly OK to do the job while drinking.  To prove it, I can trim my thumb nail with this power miter saw and will not cut myself.  Here, let me show you.”  He didn’t get the chance to “show me” because I immediately fired him.  Just think what my liability would have been if he had actually tried that!
2. Another time I bought ... Read More…

              Beginning investors have a tendency to get stressed out by the very thought of “negotiation”.

              They put off calling sellers (or calling them BACK) for days and days. They worry about what the seller might say and what they should say back to the seller.

              It’s as if they believe that something they could say to the seller—or fail to say—would make that seller motivated or not motivated.

      The truth is, sellers come to you already motivated or not motivated, and what YOU say doesn’t change that one way or another. And since that very important fact is completely out of your control, that means that the only thing you actually need to worry about in a “negotiation” is

1. Building rapport
2. Getting the information you need
3. Protecting your time

              To that end, there ARE some things that experienced real estate entrepreneurs do, and do consistently, to maximize that chances that any given seller negotiation will be a successful one.

•               Balance your need to get the information quickly with some emotional intelligence. If you really want to make deals, your need to separate the prospects from the suspects quickly and effectively must be balan ... Read More…

It’s the little things like a free dessert or beverage that makes customers feel special and appreciated.  There is nothing difficult or expensive about paying attention to your customers likes and dislikes (Wayne’s Eggs) — remembering their names and keeping track of their buying preferences.  Little things frequently produce big results.  Unfortunately, many business owners miss the small things and then wonder why they lose the business to a competitor.  Here are just a few of the “little things” that can set your business apart from the rest.

• Smile
  A smile is contagious and makes people feel welcome.  Oh, and by the way, it takes fewer muscles to smile than it does to frown.  Plus, research from the 1970s and 80s suggests that your facial expression might influence your mood.  (Try putting a smile on your face and see if you feel happy.)  So, make sure you have a smile on your face when you’re dealing with your customers, so they know their business is important to you.

• Take Responsibility for Mistakes

Everyone makes mistakes and training your customer service team to quickly apologize for mistakes and rectify them is one of the most important “little things” you can do to enhance your customer service.  Sometimes that means accepting responsibility for something that isn’t your fault.  Perception is reality.  The goal is to do your best to satisfy your c ... Read More…

      I’ll admit, I had an advantage over many of you when I got started in real estate:

     I had no money and no way to get any.

     I was just out of college, effectively self-employed, had a mountain of debt weighing me down, and had no assets that I could borrow against. Let’s just say that the nice bankers I met with were anxious to work with me…in a couple of years.

     How is any of that a good thing?

     Well, it meant that it was “Creative finance or die” in Venaworld. I had no choice but to offer to assume loans, or buy on land contract, or ask for seller carrybacks, or some combination of those things, if I wanted to buy and hold a property.

     But for many years, I had a limiting belief about seller financing: that the sellers who did it did it for the same reasons that banks and private lenders do: for the “return on investment”.

     In other words, I thought that they were doing math in their heads that went something like:

     “If I sell this house for $100,000, I’ll put that money in a savings account and earn 2% interest. If I let her make payments on the $100,000 purchase price at 6% for 20 years, that’s a much better investment. In fact, even if I let the interest payments from the bank compound, I’ll only earn $48,000 from those, but I’ ... Read More…

              Ah, for the good old days of 2009.

              Finding deals was SO easy.

              We didn’t even need a marketing budget; there were literally thousands of bank-owned and short sale deals just sitting right there in MLS, and a day of looking at 15 houses and making offers would usually turn up at least one at literally fifty cents on the dollar.

              Of course, figuring out what “fifty cents on the dollar” meant was a guessing game; so few houses were selling that coming up with comps was nearly impossible.

              And getting those deals sold was a teeth-gritting, anxiety-producing process, too; even at a 40% discount, there weren’t a ton a motivated cash buyers in the market, and when we called 10 who’d specifically identified that kind of property in that area as their favorite, they’d all say, “Yeah, I might be able to get there in the next week or 2”. Buyers saw no reason to go running down the hill with their hair on fire about any particular deal, because there were SOOOO many deals available.

              In short, it was eas ... Read More…

Why it’s Hard to Learn Creative Finance (or Anything Else You’re Struggling With)

When a topic (say, real estate, or creative real estate), or anything else) is brand-new to you, it's easy to hear, read, watch, whatever it is you do, something that strikes you as true and valuable...

But because your brain doesn't have anything to relate it to, it seems to store it in a place that's not accessible when you want it.

It's like there's a set of organized files for some things (I know how to quilt, or play the guitar, or drive to the grocery store) that if something else comes in that can be related to those "(I'm learning how to make collages, oh, hey, it's similar to making quilts. Here's a ukulele, oh, it feels like a tiny guitar, but oh, hey, the tuning is different this way. I need to go to my friend's house, oh, it's go to the grocery store and then turn left, right, left") it's easy to process and remember.

If there's nothing in there that the brain can relate to what you just learned, the new info seems to go into a junk drawer--or get misfiled.

"They're talking about options on houses. Those sound awesome. Apparently, you need some cash, which I have, and a seller who doesn't really want to sell, which I have in abundance. Ima do that".

[10 days later, when faced with a seller who wants money but doesn't want to sell] "..." (filed in a place you can't access)

Or: "They're talking about options on houses. I understand options. They're a short-term bet t ... Read More…

Entering into escrow on a home can be both exciting and stressful. The excitement comes from knowing you are close to moving into the new home. The stress comes from issues that will arise.

Budget for Closing Costs, Prepaid Loan Interest, and Home Insurance Premiums

As part of any closing, you need to go through certain steps to make sure you are both getting what you think you have purchased as well as paying for it. Each of these steps has an associated cost, known as closing costs. You have to pay them before you can take possession of the home. If you do not, the deal will not close and you will lose the home.

When going through escrow, costs associated with closing can accumulate quickly. Here is a closer look.

Cost Considerations

Prepaid loan interest is an ugly little surprise for many first time home-buyers. The lender will often require you to pay the interest that accumulates between the day the loan is funded and the day you are actually scheduled to make your first loan payment. Many people mistakenly believe they have roughly a month before they have to start paying. This is rarely the case. The sudden requirement to pay a hundreds or thousands of dollars can be a nightmare. If at all possible, you should try to get the lender to fund the loan as close as possible to the actual closing date, even on it. Try to avoid closing the loan on a Monday. The lender will have to fund the loan the previous work week, which means interest will be growing.

Homeowners in ... Read More…

"Don't judge each day by the harvest you reap but by the seeds that you plant." -Robert Louis Stevenson

In recent years, some cryptocurrency traders have been caught off guard by the surprise tax bill generated from their trading activities. Many others have simply failed to report these transactions to the IRS at all, unaware that they even need to. Those folks in particular are in for a rude awakening someday, as the IRS expands its enforcement against crypto traders.

So, what are your responsibilities as a crypto trader? What if you’re not actively trading these assets, but simply holding them? What records should you be keeping?

Crypto is Taxed as Property
Let’s start with the most important thing you need to understand about crypto, and its relationship with the IRS: The federal government taxes crypto like property.

In other words, the IRS looks at crypto the same way it looks at houses, cars, paintings, even baseball cards. While crypto obviously isn’t a tangible asset the way a painting is, the IRS treats it the same way for tax purposes.

If you buy a painting today for, say, $10,000, and then you sell that painting in December for $30,000, then you’ve made a profit in 2021. You might have some transaction costs, like commissions or listing fees that reduce that profit. Let’s say you pay a 10% commission to an auction house to sell your painting. Sale price was $30,000, so your actual profit is reduced by $3,000, which mean ... Read More…

The City of Cincinnati now requires that all rental housing providers who "own and control more than 25 units" offer alternatives to a full rental deposit, including so-called "deposit insurance" or the option of paying the deposit over several months.

This ordinance also re-defines retaliatory eviction as any eviction that occurs within 6 months of a tenant reporting code violations or other conditions to applicable authorities, unless the housing provider can prove "by a preponderance of evidence" that the eviction is due to the tenant laying waste to or illegally using the property, or the owner wants to move into the house or remove it from the rental market permanently, or the property must be vacated to make repairs. 

It contains a disclosure that must be given to residents prior to move in, as well.

Click to read final version of new law: Renters Choice  

Recorded council session click HERE