Real Estate Investors Association of Greater Cincinnati

Your credit score is a key factor that affects many aspects of your financial life, from securing a mortgage to getting favorable interest rates. Many factors can impact your score—some of which might even surprise you. Some strategies may seem counterintuitive at first, but following these steps can help improve your credit score by up to 100 points. Here’s what you need to know:

1. Keep Your Credit Card Balances Below 10% of Your Credit Limit

One of the most impactful things you can do to boost your credit score is to keep your credit card balances low. Ideally, your credit utilization ratio (the amount of credit you’re using compared to your total credit limit) should be kept below 10%. For example, if your credit limit is $1,000, aim to keep your balance under $100. When you lower your balance, you reduce your credit utilization, which can improve your credit score. Not only will paying down your balances increase your available credit, but it also signals to creditors that you manage debt responsibly.

• Do NOT Close Paid-Off Credit Card Accounts

When you pay off a credit card, you might be tempted to close the account. However, closing a credit card account—especially one that has a long history—can hurt your credit score. The reason is that your credit history length and the total amount of available credit both influence your score. By keeping the account open, you preserve the length of your credit history and avoid reducing your ... Read More…

In the world of real estate investing, finding the right financing option can be the key to success. One of the most effective loan products that has gained significant attention in recent years is the Debt Service Coverage Ratio (DSCR) loan. DSCR loans are especially popular among real estate investors due to their flexibility and streamlined approval process. These loans are tailored for investors seeking to maximize their portfolios without relying on personal income or traditional credit scores. Here’s why real estate investors should consider DSCR loans as a financing solution.

What is a DSCR Loan?

A DSCR loan is a type of financing where the lender evaluates the borrower’s ability to repay the loan based on the income generated by the property itself, rather than the borrower’s personal income or credit score. The debt service coverage ratio is a financial metric that compares the property’s net operating income (NOI) to the total debt obligations, typically the mortgage principal and interest, taxes, insurance, and any homeowner’s association fees. A DSCR ratio of 1.0 or higher indicates that the property generates enough income to cover the debt service. However, some lenders will allow a DSCR ratio as low as 0.75.

1. Easier Qualification Process

Traditional real estate loans, particularly those through conventional lenders or government-backed programs, typically require extensive documentation of the borrower’s incom ... Read More…

Real estate in a self-directed IRA (SDIRA) is the number one strategy of smart investors who choose their own investments to build retirement income. You can do this, too, if you use a self-directed retirement plan. You’ll become part of a growing class of individuals who control their retirement funds and invest in alternative assets to build wealth and diversify your portfolio.

4 Ways Real Estate in a Self-Directed IRA Earns Income

Building tax-sheltered retirement income with real estate in a self-directed IRA opens a considerable number of doors for investors. While the most common asset is an actual piece of property, there are a myriad of other holdings the average individual might not know about.

Investors who are familiar with the ins and outs of any strategy can put their knowledge to work and invest in those assets in an SDIRA to grow wealth for retirement in a few ways.

Property Appreciation

Typically, the value of a good piece of property appreciates over time. Your IRA can invest in different types of real estate (residential, commercial, improved and unimproved land) and hold on to it until the time is right to sell. Additionally, rehab and flip projects present a quick way to upgrade a house and sell it for a profit.

Because your IRA owns the asset, income from the sale is deposited directly into the IRA account and enjoys tax-sheltered status. This creates additional capital you can use to reinvest, make improvements on another asset owned ... Read More…

The T.R.U.T.H. Method has been successfully used by authors like Norma Richards, who wrote Short Term Rental Secrets Revealed, and Tancy Mason-Phillips, author of Leveraging Virtual Assistants for Cost-Effective Growth. Whether you’re looking to create a book, launch a podcast, produce social media content, or develop a course, this method provides a clear, actionable framework to deliver impactful content quickly. The focus is on progress, not perfection—because your audience needs value now, not later.

Why the T.R.U.T.H. Method

The world is full of ideas, but execution is what makes the difference. The T.R.U.T.H. Method breaks the content creation process into manageable steps, helping you stay focused and take action. It’s designed to deliver results while others are still stuck in planning mode.

The T.R.U.T.H. Method Frameworks

Each step in the method includes four components:

1. Focus: Understand the main objective of the step.
2. Reflection: Think about how it applies to your content.
3. Action: Take specific steps to move forward.
4. Implementation: Put what you’ve done into practice immediately.

1. T-Target Your Niche/Audience

To create impactful content, you must know exactly who you’re speaking to.

1. Focus: Define your audience clearly.
2. Reflection: Who is your content for? What are their needs, pain points, and aspirations?
3. Action: Write a detailed profile of your audience, inclu ... Read More…

Back when I first joined my REIA, there was an experienced investor named Ralph who always wore these buttons that said YAFTAX.  After perhaps 6 months, I finally worked up the courage to ask him what that meant, and he said, “sound it out”.

After a few tries, I got it: You have to ask.

His point was, don’t walk around being confused by my button. Ask me. Don’t walk around being confused by real estate. Ask someone.

So fast forward (mumble mumble) years to yesterday, when I had a really interesting conversation with a really new investor that FINALLY made clear to me the full meaning Ralph was trying to convey.

This new investor mentioned that at some of our 'deal' meetings, she'd listen in, write down any terms she didn't understand, and google them.

The example she gave was, "I didn't initially know what it meant when people said, 'I have a 3/2'."

I asked why she didn't just ask the question--this is a pretty open meeting, and people talk back and forth a lot--and she said something along the lines of "I don't want to interrupt/bother people/ask annoying questions."

My response was as it always is: "If you'd ask those questions, you'd be doing a lot of people a favor.

You'd give smart, helpful people the chance to feel smart and helpful.

You'd be asking a question that it's likely that other people have, and they'd get to hear the answer too.

You'd also be showing other people, who might not be familiar with the community, that ... Read More…

A feasibility study is a critical step in real estate investment, offering a detailed analysis of a property’s potential. It helps investors make informed decisions, mitigate risks, and align projects with market conditions, financial goals, and regulatory requirements. Including an architect in this process enhances the study’s accuracy and value by providing expert insights into design, functionality, and compliance.

Key Benefits of a Feasibility Study

1. Risk Mitigation
   A feasibility study identifies challenges such as zoning restrictions, environmental concerns, or construction costs. With an architect involved, these challenges are addressed proactively, ensuring that risks are minimized before development begins. Architects analyze the practicality of design solutions and anticipate structural or site-related complications.
2. Financial Viability
   The study evaluates costs, potential revenues, and ROI. An architect contributes by estimating design and construction expenses based on material selection and project scope. Their insights into cost-effective solutions help ensure financial viability, avoiding unprofitable ventures while maintaining quality.
3. Market Relevance
   By assessing demographics and market trends, feasibility studies ensure projects meet demand. An architect adds value by tailoring designs to target markets, creating spaces that appeal to specific buyers or tenants. Architects also consider how aesthetic and functional features align with ma ... Read More…

Accidents happen, and as an insurance agent, the uptick in accidents is very apparent during this time of year. As weather and road conditions change with the season, the following driving safety tips will help keep you safe, and accident-free, as you enjoy the cool crisp air and the holiday season.

Leaves

In subdivisions and country roads leaf accumulations on the roadway when wet, can get extremely slippery. If the temperature drops below freezing, the wet leaves will freeze and turn into dangerous icy leaves on the roadway. Besides reducing the car's traction, causing skidding and the possibility of losing control of the vehicle, leaves often cover the painted road markings, making it difficult to know the locations of the lanes. Some things to be aware of:

• Slow down if you are driving on a road covered with leaves, especially when driving around turns.
• Allow yourself plenty of room to stop in an emergency. Keep a greater distance between you and the car in front of you.
• Leaves make it difficult to see potholes and bumps in the road.
• A pile of leaves raked to the side of the road is an inviting place to a child. Children enjoy jumping into the leaf piles or burrowing down into them and hiding. Never drive through a leaf pile. Use caution going around turns and where children are playing.
• Keep your windshield leaf free to avoid wet leaves getting stuck under the windshield wiper blades.
• In order to avoid the possibility of a fire hazard from the exhaust system o ... Read More…

No matter where you live, winter storms can wreak havoc on property. Taking action before and after storms can reduce the chances of serious damage to homes and lives.

Before the storm

• Outdoor furniture, grills, toys, birdbaths and the like should be stored away. Secure and anchor large objects such as prefab sheds and play structures.
• Trees can look like they’re in good shape, but may be diseased or have other problems that can cause them to fail unexpectedly. Trees stressed by drought or rooted in saturated soil can be more susceptible to problems when storms hit.
• Local ordinances may require that trees be trimmed a minimum distance from driveways, structures and power lines. For safety’s sake, a qualified professional should perform this work.
• Use binoculars to check your roof for missing or damaged shingles. Flying shingles can damage structures, while missing shingles can allow water to leak into the home. Any roofing repairs should be done by licensed professionals to ensure the work is done safely and correctly.

After the storm

• Look for downed or sagging power lines and report them immediately to your utility company. Always assume a downed power line is live, and never approach or touch it.
• Check around for fallen branches or other damage to trees and structures. This is also a good time to re-inspect the roof for storm damage; any repairs should be made as soon as possible to prevent further problems.
• Note any areas where water may have i ... Read More…

There are 3 figures that go hand-in-hand when trying to determine a commercial/apartment property's value. They are; Net Operating Income (NOI), Cap Rate (CR) and Asking Price or Purchase Price (PP). If you know 2 of the figures you can always figure out the third.

I will be talking about the NOI of a property. More specifically, how NOI is calculated as it relates to an apartment building.

We are going to start with a simplified version of how to arrive at the NOI of a property and then expand each category. Basically, the formula is: Income -Expenses (other than debt service) = Net Operating Income.

INCOME:

First thing, I determine the income generated by the property. I start with the Gross Potential Rental Income (GPI) or Scheduled Gross Rental Income (SGI). Both terms are used interchangeably within the industry. The GPI assumes that all apartments (100%) are rented at full market value even if some are actually vacant or discounted.

For our example, I will use a 30 unit apartment building that has all 2 bedroom, 1 bathroom units with market rents of $600 per month each. Therefore, the GPI of this complex as an annual figure will be: 30 units x $600/month = $18,000/month x 12 months = $216,000 per year of Gross Potential Income.

The second step in the equation is to determine the vacancy of the property, both physical and economic. If you have a 30 unit complex and 3 units are vacant, the vacancy is 10% (3/30 = .1 or 10%). I will not be calculating economic vacancy in this ... Read More…

As you can imagine, I meet a LOT of real estate entrepreneurs every year.

And something that I’ve noticed about many of you, including newbies and old pros, is an energy you give off that I can only describe as clenched-upness.

Even folks who are excited, on the surface, about starting or expanding their real estate businesses are often simultaneously radiating a sort of anxiety about the whole thing.

Yes, I understand that what I (and your sellers and buyers and private lenders, by the way) am really feeling is your underlying fear.

Whether it’s a fear that you’re being sold a bill of goods by all the folks (like myself) who tell you that there’s unimaginable money in real estate, or a fear that it works but you can’t do it, or a fear that you WILL succeed and then be judged because you have money and your friends and family don’t, it’s definitely there—at least in most people that I meet.

But there are others, and some of them ARE brand new, who are JUST excited, because (sometimes in the face of all evidence) they seem to have total confidence that, ultimately, everything will work out for them. And guess what? In a MUCH higher percentage of cases than with the hand-wringers, it does.

And no, I’m not going to now exhort you to go out and find, or fake, some confidence. That’s silly, and there’s nothing you can do to get it if you don’t have it OTHER THAN go out and get some deals under your belt.

Instead, I ... Read More…