Real Estate Investors Association of Greater Cincinnati

I deal with a lot of investors. Everyone who knows me know they can just send a text, email or just call. I get so many investors asking me for a small loan just to finish a rehab they started.

I’m told or receive an email that says something like this. Hey Rob, I got this rehab I need to finish. I just need $15k, $20k etc just to finish.

There are two reasons I really hate these calls/texts/emails.

1. I often can’t help them because they owe too much on their property
2. I can help them but they don’t want to pay the cost, especially if they have a loan already on the property. We need to be in first position, and they don’t want to refinance their whole project.

Whether you are new at this or very experienced, the best way to approach your deal is to have some cushion. When you open a house, you don’t know what you might have missed when assessed your project. You need to have a cushion. You need to have a little room in there just in case you need it. I tell everyone I speak to, text, or email to ensure you have a little room, embellish your budget a little, or add a contingency line. We want you to succeed. If a deal is tight, you are in danger of losing money on the deal. Prices are coming down; be vigilant. We would love to be your partner today and 1000s of projects later.

We can help you with your fix-and-flips, fix-and-holds, buy-and-holds, refinance, new construction, unsecured credit, and more.

Securing the debt financing to purchase investment real estate has been fairly easy over the last decade as we have been in a long period of plentiful capital and historically low interest rates. It seems you could find lenders in every direction, ready to lend on a good investment property but as recently as a year ago, we started to see a shift. Interest rates had been climbing for a year or so, and newer, inexperienced investors started defaulting. The credit markets and private capital providers alike started pumping the breaks. So how do we as RE Investors, secure the debt financing to invest in today’s environment?

First, you have to start with a “good deal”. You would be shocked at the number of times, potential borrowers fill out an application for a loan on a property that has no chance at profitability. If you are a newer investor, educate yourself on what makes a deal a “Good Deal”. Attend your local REIA meetups, shadow a successful investor, JV with someone more experienced, hire a coach to teach you. Don’t just grab a contract and assume it will be profitable for you. When you present a “bad deal” to a potential lender, you immediately lose credibility. Let’s face it. No one wants their money to be
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As a hard money lender, I see a lot of closing statements (aka HUDs) from a lot of title companies. I’ve noticed an annoying trend that is also disturbing.

When I’m lending money to a real estate investor, I send the title company my very detailed and specific lender requirements – one of those being a basic Lender’s Title Insurance policy from a well-rated underwriting company. In most cases, I do not require additional Insurance endorsements, and I never require a closing protection letter.

In fact, part of my title order says: “Do not add endorsements unless specifically requested. Do not issue a closing protection letter.” Yet, several title companies still try to include them. Sometimes many of them.

Like this one, from an actual preliminary HUD:

• Closing/Settlement Fee to [xxxxxxx]  Title & Escrow Co. $295.00
• Courier/Shipping & Handling to [xxxxxxx]  Title & Escrow Co., $25.00
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What would happen if you were to step away from your business thoroughly?

If that question just gave you the chills, then I have a few more for you: 

• Do you feel your business owns you instead of you owning the business? 
• Do you see poor communication in your team? 
• Do you feel compelled to be involved in every business-related decision? 
• Do you have a problem getting the results you desire from your staff?
• Are you an entrepreneur looking to scale your business but don’t know how you’ll manage any more than you’re already doing? 

I was once told (while struggling with some of these questions myself) that your business is not measured by its success when you are there but by its success when you’re not there. 

It’s true. However, many real estate investors run businesses that cannot operate
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“You’re making too much money.”

That’s what echoed in Missouri native Ryan Haywood’s ears after his boss decided to slash his commissions—a “sales haircut,” as it’s bitterly known in the industry.

He didn’t realize it at the time, but this setback was about to unveil a path that would lead his family toward the future that Ryan and his wife Megan had dreamt about.

Ryan’s story is not just a testament to his determination to build his wealth on his own terms. This story is about his strategic, practical approach to building a truly successful real estate company in the face of uncertainty, full of solid insights that every investor should hear.

Ryan’s Journey From Sales to Real Estate

Ryan knew something had to change; he just hadn’t yet realized what that change would be. Shortly after receiving this news, Megan and Ryan had their third child. This meant Ryan was on paternity leave and suddenly had extra time on his hands. He wasn’t sure what his next steps would be—
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Real estate investment, whether in residential or commercial properties, is a multifaceted endeavor that demands careful planning, strategic foresight, and a keen understanding of market dynamics. Among the myriad of professionals that investors may engage, architects play a crucial role in ensuring the success and profitability of these investments. This article elucidates when and why real estate investors should consider architectural services, highlighting their benefits and the scenarios in which their expertise becomes indispensable.

1. Property Acquisition and Due Diligence

Before acquiring a property, investors must conduct thorough due diligence to assess its potential and feasibility. Architects can provide invaluable insights during this phase by evaluating the structural integrity of existing buildings, identifying design flaws, and estimating the cost of necessary renovations or upgrades. Their assessment can reveal potential issues that might not be apparent to the untrained eye, such as compliance with zoning laws, building codes, and accessibility standards.

2. Maximizing Space and Functionality

As I go to various states pursuing distressed property acquisitions, I am finding an uptick in the number of sellers willing to sell their off-market properties. These include probate situations, tired landlords, elderly moving to assisted living, vacants, bankruptcies, and pre-foreclosures. The problem is sellers still have the impression their homes are worth more than they are. They remember their neighbors getting multiple offers and selling above the norm, but that has changed somewhat. I live in a high-demand area, and houses can sit on the market for 30 days before they go under contract. It can be even longer around other parts of the nation that I visit. Although most of the country is still seeing lower-than-normal inventory, The higher interest rates and the uncertainty of government affairs have an effect.

The reason I say proceed but with caution, is because if you are going to rehab a property, the rehab costs are outrageous. The cost of materials has come down a little from the pandemic but they are still high and I think they are here to stay. Businesses know that people are willing to pay and consumers are spending like crazy. On the other hand, contractors are charging much higher labor costs. Sheetrockers, framers, painters, plumbers
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Many investors like buying rental properties to make passive income. Passive income is money you earn without having to work for it every day. Owning rental homes or apartments means you can collect rent payments each month without doing much active work.

Take the story of Jim and Cindy, for example. A few years ago, Jim inherited a small two-family home from his grandparents. At first, they weren't sure what to do with it. But after fixing it up, they decided to rent out both units. To their surprise, the rent covered the mortgage payments with some left over. They had stumbled into passive income!

Motivated by this experience, Jim and Cindy used their savings to purchase another rental property a year later. As the properties started building equity over time, they began exploring ways to diversify their investments and revenue streams.

If you already own a few rental properties like Jim and Cindy, you wonder - should I buy more properties, or try making passive income in other ways too? There are several options to consider beyond just more real estate.

Bu
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Mobile homes represent a unique yet often overlooked asset class that continues to yield attractive returns. The lack of mainstream discussion leads to confusion about how to effectively invest in mobile homes. This article demystifies the process, outlining the three primary investment types: mobile home parks, mobile homes on rented land, and mobile homes with land.

Mobile Home Parks
A mobile home park may consist of two or more units on a single parcel. Owners might possess just the land or both the land and the homes. Operating a mobile home park often requires inspections and special licenses. Ownership models vary: owning both the homes and the land is akin to running a flat apartment complex with comprehensive responsibilities, whereas owning just the land reduces maintenance duties, as tenants manage their own units. Given the right management approach, both scenarios can be highly profitable.

Investors should consider seller financing to mitigate sellers' potential tax impacts from cash sales. For bank financing, community banks are usually more amenable to negotiating terms. However, the increasing acquisition of larger parks by hedge funds has intensified competition, potentially squeezing ret
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I get this question a lot, especially, during or just after a presentation showing an apartment complex illustrating a ‘cash on cash’ return in excess of 20%.

If you went to a Commercial Broker and told them you were looking for properties with a 20% COCR, they’d do one of two things;

1. They would buy the property themselves if they ever found one with a 20% COCR
2. They’d hang up on you because they’d think your expectations are unrealistic.

You probably won’t find an Apartment complex advertised with a 20% COCR. However, you can increase your chances of finding some great deals by doing a few things differently.

First off, there’s no big secret in ‘finding’ Apartment complexes for sale. Start by using the same vehicles most investors use. For instance, you can search through Loopnet.com or go to any of the major or regional Commercial Brokerage web sites such as Marcus & Millichap (MarcusMillichap.com), CB Richard Ellis (CBRE.com) or Sperry Van Ness (SVN.com) just to name a few.

Ano
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