Real Estate Investors Association of Greater Cincinnati

The coffee shop is quiet for a change. The normal morning bustle has yielded to a lull, giving the baristas a chance to enjoy a break and catch up on some cleaning before the lunch rush.

I’m only partially aware of what’s going on around me because, I’m busy obsessing about my investment account. I’m WILLING the number to go up just a few more cents. The problem is it’s been going in the wrong direction for months.

My obsessing is interrupted by my phone. It’s a call from a tenant living in one of my rentals who has a toilet that won’t stop running. She’s already told me twice, and I keep forgetting about it.

With promises to stop by before the day is over, I barely hang up when I get another call, this time from an investor with a mobile home park deal that I’ve been putting off for weeks, because I haven’t made time to look at the numbers and see if it’s a deal worth doing. 

Meanwhile, my email pings to remind me of a deal I’ve been working on, and the seller is wondering when we’re going to close.

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Let me first tell you a little bit about my background. A few years ago, I was buying as many homes as I could with traditional financing. But when the banks started telling me that I couldn’t buy any more homes, I started buying homes creatively – thru “subject-to” and “sandwich lease options” methods. In the course of 18 months, I bought over 16 homes!

Yes, I owned 16 homes!!! I thought I had it made. I was making $100 - $200 net cash flow on each house. My passive income was growing, and I was steadily getting out of the rat race. I was a “Successful Real Estate Investor” now – or so I thought!

But guess what? I quickly discovered that while I might have been Equity Rich… I was seriously Cash Poor. I had lots of equity, but no cash to pay the bills!

(How many of you know - you can’t eat “equities”?)

But let’s look at my situation a little deeper… All that equity I thought I had in those 16 homes… was a HYPOTHETICAL MYTH<
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Let me first tell you a little bit about my background. A few years ago, I was buying as many homes as I could with traditional financing. But when the banks started telling me that I couldn’t buy any more homes, I started buying homes creatively – thru “subject-to” and “sandwich lease options” methods. In the course of 18 months, I bought over 16 homes!

Yes, I owned 16 homes!!! I thought I had it made. I was making $100 - $200 net cash flow on each house. My passive income was growing, and I was steadily getting out of the rat race. I was a “Successful Real Estate Investor” now – or so I thought!

But guess what? I quickly discovered that while I might have been Equity Rich… I was seriously Cash Poor. I had lots of equity, but no cash to pay the bills!

(How many of you know - you can’t eat “equities”?)

But let’s look at my situation a little deeper… All that equity I thought I had in those 16 homes… was a HYPOTHETICAL MYTH<
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I don’t want to be a buzz kill…

…but there’s too much mushy thinking in the short-stay space. 

So much so that I see short-stay landlords acting like home-sharers — and having a lot of fun doing so.

However, if you check their bottom lines, you’ll see they aren’t doing much better than passive landlords. And doing extra work without capturing extra income is not the way to run a for-profit business.

As a foaming-at-the-mouth Airbnb-er since 2011, one who is both a provider and user with stays all over the United States, let me offer a bit of structure.

Three Short-stay Business Models 

You need to be crystal clear about which type of short-stay business you’re operating.

The table below summarizes the financial goals of the three models
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Financial freedom is multi-layered. First, you want to cover the bills. Then, you build stability, so you have less worry. Afterward, you layer on some more to enjoy life. Finally, most turn toward living their best life now AND leaving a legacy.

As someone who loves the Infinite Banking concept, many people ask me questions about life insurance and how a properly designed policy could benefit their journey to greater financial freedom. What they often forget is that any financial concept is best implemented as part of a comprehensive financial strategy.

As a CFP® (CERTIFIED FINANCIAL PLANNER™) professional, what do I believe is the secret to strategic planning to get you to financial freedom quickly and without taking unnecessary risk? I just did it. It's asking powerful questions.

Yet, too many people don't know the right questions to ask. To empower you on your journey, here are 10 of my favorites.

1. What would be a realistic goal for someone in my financial situation? – Sometimes, you’re too close to your circumstances to see potential goals you should con
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Deposit Refunds for Resident Retention

        Consider the benefits of keeping good residents longer. By providing a “cash back” incentive, you not only encourage longer stays but also increase the likelihood of a larger deposit refund for the resident. This strategy can significantly improve your property's stability and reduce turnover costs. 

        I expect to redo apartments every 4 to 5 years anyway, so why not offer to start sending back annual deposit refunds, perhaps in $100 installments, starting the 4th year and continue to do so as long as the resident stays, passes annual inspections, and there is a balance remaining on the deposit?

Four “Nevers” When Screening Potential Residents

1. Never rent without asking for a picture ID
2. Never rent to someone who needs to move in “right away.”
3. Never rent to someone who flashes all rent and deposit in cash
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As a landlord, it is in your best interest to require your tenants to maintain Renters insurance for the duration of the lease.  Not only will this protect your tenant, but it will also protect you.

1. The only thing a tenant owns in your building is their personal belongings. The only way to protect those belongings is to buy Renters insurance. Renters insurance will cover personal property in the event of a fire or if stolen or damaged. It also reduces the threat of a lawsuit against you in the event the client claims landlord responsibility for damage to their belongings.
2. There are many different options and endorsements that can be attached to a Renters policy. We can cater the policy to the renter by easily changing coverage amounts on personal property or liability. We can extend property coverage to another property or even cover identity theft. Renters insurance can also cover living expenses for the tenant while the home is being repaired or rebuilt.
3. A Renters policy will provide an extra layer of protection for you from being sued if your tenant owns a vicious dog or is negligent in the injury of anothe
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Every investor has heard how important it is to build rapport with distressed homeowners. What we never hear about is how to do it. What is it about someone that makes us instantly like or dislike them? We do not really know what it is about that person; we just know it is something. 

Rapport is developed in the subconscious. We cannot quite pinpoint it, but there is something about that person that seems familiar and makes us feel comfortable around them. 

So…how do you establish rapport? Let’s start with a few basic tips. When I am looking for distressed homeowners, I like to knock on doors. It is the fastest way to get deals. If I knock on twenty doors over a weekend, I will have several contracts by Sunday afternoon. I would rather spend a day or two getting multiple deals instead of waiting for my phone to ring, hoping for just one deal. 

Here are some dos and don’ts when you knock on doors or meet a homeowner in person:

Do not wear sunglasses. Homeowners cannot see your eyes and subconsciously you seem suspicious.

Never wear a hat,
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Investing in real estate can be a lucrative venture, especially when it comes to purchasing an investment property. However, navigating the complex world of mortgages and financing can be overwhelming. This is where a knowledgeable mortgage broker can play a crucial role. In this article, we’ll explore the benefits of using a mortgage broker specifically for investment property transactions.

1. Expertise and Guidance: A mortgage broker is like a seasoned guide who knows the ins and outs of the mortgage landscape. Here’s how a good broker can benefit you:

• Understanding Your Goals: A mortgage broker helps you understand your short-term and long-term investment property goals. They assess your financial situation, compare investment loans, and can negotiate with lenders on your behalf.
• Tailored Advice: Brokers provide personalized advice based on your unique circumstances. Whether you’re a first-time property investor or a seasoned pro, they can structure loan terms, negotiate interest rates, and select features that best suit your situati
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Securing the necessary “hard money” funding to buy and fix a property can be easy or hard, depending on how prepared you are with the paperwork your lender will need to process the loan fast.

When Do YOU Need a Fix and Flip Loan?

A fix and flip loan is a short-term loan is designed to fund both the acquisition and renovation of a property intended for resale at a profit, or as the first step in a buy-and-hold strategy, if you need the money to fix the property before refinancing it into a long-term loan.  

Unlike traditional loans that focus on the current value, a fix and flip loan assesses the property's potential value post-renovation, taking into account the planned renovation work to be done.

The loan typically includes the cost of buying the property and at least some of the estimated repair expenses, which makes these loans appealing for the RE investor doing rehab projects.

It’s a fast-closing, short-term loan with lower down payments and interest-only paym
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