Real Estate Investors Association of Greater Cincinnati


Jay’s 2 Big Checks Formula

0
Comments

As most of you already know, I believe that using private money is the best way to fund my real estate deals. I’ve been preaching the benefits of private lenders for years, and have been able to find a great deal of success following a simple system. But the top reason I prefer to use private money is that it allows me to receive multiple checks for every deal. Stop and think about that for a moment. If you’ve ever had to deal with banks, you probably already understand how much of a hassle that whole process can be.

Traditionally, if you’re borrowing from a bank, you’re only going to receive 80 percent of the total purchase price. It doesn’t matter if you’ve found the best deal on the planet, you’re going to need to come up with about a fifth of the funds on your own. When you borrow from a private lender, not only can you receive a loan for the full price of the property — you can borrow more than the house is worth. This is something I like to do to cover any additional repair costs which are needed to rehab a home.

Once the house has been prepared, it can then go on the market. This is another point when having some extra funds can help in marketing or promoting a property. Once you’ve found a buyer for the home, the next big check comes at the closing of the purchase. A strategy that I use to e
Read More...


Why are Duke and GCWW regularly asking for access to their meter equipment

2
Comments

Every month I have clients call that they received a notice from Duke Energy (the local gas and electric utility) or from the Water Works, asking for access to check their equipment. People often are confused why we get these requests. 

The reason is twofold – equipment upgrades or checking for leaks. In years past, a “Meter Reader” would go door to door every month reading the gas and electric and water meters. They went in every property monthly and manually read the meter so they could bill you. If you were not home, they did an estimated bill based on your history.

Technology has changed this, and new meter technology lets them read the meter without entering the building. At first it was a separate little box they attached to meters or in the case of electricity, they had a way to read it though the electric wires. Early versions put out a signal and the utility had to have someone drive down the street to get the meter reading. Over time these devices have changed, and newer versions can be read remotely anytime.

I recently got a letter from the Water Works about my house. The man came and was able to pop off the top of the meter and replace it with the new top that has a transmitter built in. It took him less than 5 minutes to make the upgrade. Then he cut off the wire to the o
Read More...


Pay Taxes or NOT? 1031 Exchanges Make It Your Choice!

0
Comments

What are the consequences of selling that property you have held for 15 years? You may walk away with some cash, assuming you haven’t refinanced the property. If you have refinanced the property and taken cash out, you may find yourself owing more in taxes than you get when you sell. By the time you’ve paid off the mortgage and paid all of those taxes the government wants, it could literally cost you to sell your property.

Why? Because the depreciation deduction that you take on a rental property is really just temporary—you get to write it off while you own the property, but you have to “recapture” it when you sell.

We all know that for the most part your property doesn’t really depreciate over time. Meaning it does not go down in value. We plan on the property to go up in value.

Well, since it really did not depreciate, the IRS wants you to return the deduction. So, in addition to the capital gain on the property (Sale Price less the purchase price and any improvements you did) all the depreciation has to be added back to income (or recaptured) when you sell the property.

Read More...


Can I really amortize 400 months?

0
Comments

I was in the middle of negotiating on a probate property. It was the original home the seller’s family built in 1962. I could see the seller was very attached to this home. Why wouldn’t he be? He had an amazing childhood in this home. The first time I met with him I spent about two hours getting to know him. Finding out what his goals are and what he is looking for in a buyer.

This may sound remedial, but it’s important to understand; the seller is really the one who has some pain that he is trying to avoid. This is something many new and experienced real estate investors forget. It’s for this reason, I spend so much time on the phone and in person speaking with the seller. Many people have told me this is a waste of time. To them I ask, “Is it really?” If you don’t spend the time getting to know your seller, how will you ever find out what their real estate problem is to create a deal that will resolve/ease their pain? 

As the potential buyer, you need to take the time building rapport with the seller. Don’t forget, you can be up against more than a half dozen potential buyers. What is going to make you stand out as, “the only logical choice.” Read More...


Negotiating Foreclosures

1
Comments

Think of yourself as an investor or buyer’s broker. Your goal is to buy one or two single family detached houses at the best price possible. So, you target foreclosures.

First you will need to see if someone in your community offers a foreclosure listing service. Most large cities have them. That will save a lot of time.

Then comes the sorting process. You are looking for value. So, one sorting process would be to look for properties with old loans. 

Maybe you’ll have a property style sort. Only brick on slab, no houses on pier footing – whatever makes sense or non-sense in your market.

Maybe you’ll have a type of sort, like no condos; or a function sort like three bedrooms or larger.

There are three stages of foreclosure. The first stage is pre-foreclosure. It includes people who are behind on their payments and homeowners that have had foreclosure action filed against them, but the sale has yet to occur. This is the best time for the most profit requiring the least cash and/or credit. The second stage is the s
Read More...


Working with Contractors: Building a Reliable and Successful Team

0
Comments

Hiring the right contractors is crucial for running a successful real estate business. It's important to acknowledge that turnover among contractors is common in this industry. Contractors may become too expensive, busy, or their quality of work may decline over time. That's why it's crucial to continuously network and search for new contractors to add to your team.

Finding a Contractor:

  • Network at your local Real Estate Investors Association (REIA) to connect with investors who can recommend reliable contractors.
  • Join local real estate Facebook groups and seek recommendations from fellow members who have had positive experiences with contractors.
  • Utilize websites like Angie's List or Home Advisor to explore contractor options and learn about their specialties and areas of expertise.
  • Create a Craigslist ad specifying the type of contractor you're seeking, but be prepared to conduct thorough due diligence when assessing responses.

Due Diligenc
Read More...


Are You Working on the Wrong Things

0
Comments

Hey, folks, Ron is going to be in Cincinnati and Columbus for 1-day workshops on July 28th (Cincinnati) and July 29th (Columbus) and it’s only $47 for 1 person ($67 for 2). Register HERE it’s a great use of your day AND 100% satisfaction guaranteed 

There’s a common mistake I see students making repeatedly and it doesn’t seem to matter if they are new or been around awhile. That mistake is:

Doing Everything They Can to Feel Busy Except the Critical Things Required to Stay in Business.

It’s so easy to be busy. Anyone can do it and most people would say they’re very busy almost all the time.

“If I only had more time.”
“The days just aren’t long enough.”
“So much to do and so little time.”

A rat in a circular cage is busy running in circles but getting nowhere. Pretty soon he has a heart attack and dies. Be
Read More...


Good Debt, Bad Debt

0
Comments

Every day I meet people at a stage of their lives where debt is greatly affecting them. They are beginning to realize that debt takes much more than just your money.  

I am talking about people with average salaries—and people making good money or even exceptional money, but not necessarily making financial progress. These are good people, people that deep down know there is a better way but never seem to find it.  

When I refer to Good Debt, I am actually using shorthand meaning “good uses of debt.”  Debts, like guns, are actually neither good nor bad in and of themselves. In both cases, it takes a human to pull the trigger. When we sign, scan, or otherwise acknowledge indebtedness, we are pulling the trigger. It is how we use debt, and what we use it for that makes it good or bad.  

Using debt without considering value of the goods, services, or property being acquired is the beginning of serious trouble.  

Using debt wisely can increase your wealth, net worth, and cash flow. Using it poorly decreases or destroys these things. Never using debt at all
Read More...


Is Buying Land a Good Investment

0
Comments

 7 Reasons why buying land is a better investment than traditional real estate. 

Real Estate investment is HOT right now. Every time you turn the TV on, there’s a new house-flipping show. But you see a deeply-edited version of reality. Buying a house to flip is so much more difficult than it seems.

Land is a different story. When you compare buying land to buying houses, the advantages pile up fast. Land flipping is both a no-brainer and a well-kept secret. Here are 7 compelling reasons why buying land is a better investment than buying houses.

  1. Less competition
  2. Extensive education unnecessary
  3. Less hassle
  4. Less cash upfront
  5. Less risk
  6. Read More...


Why You Should Get Going with Corporate Rentals

0
Comments

Landlords have always had the ability to woo business travelers to their rentals. 

But now that online travel agencies such as Airbnb, HomeAway, and TripAdvisor have gone mainstream, it’s easier than ever!

Let’s define a corporate rental as dwelling that’s lease directly to a company or a business traveler who has a housing allowance. If a company is paying for the rental, and not the tenant,  then it’s a corporate rental. 

When a company pays their employees or contractors to work remotely, then that tenant: 1 – Will behave and not embarrass their employer

2 – Will have a binary attitude towards your rates. Either they are within their allowance or they aren’t.

These two characteristics make business travelers the most lucrative and ideal people for your rentals.

The Opportunity

Read More...