Real Estate Investors Association of Greater Cincinnati

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'."

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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 s
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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.
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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.

Advanta IRA is one of the nation’s leading self-directed account administrators. We often encounter questions from people who want to know about self-directed investing. Below are 15 of the most frequently asked questions about how a self-directed IRA (SDIRA) works with alternative investments, including types of accounts, a list of common assets, and how to fund a new account.

Using alternative investments to build retirement wealth is a smart strategy in today’s economy—especially when combined with an erratic stock market. Alternative investments often have a low correlation with stock market performance and have the potential to produce positive returns even when the stock market is down and when inflation is high. This is why the SDIRA is becoming more popular with savvy retirement savers like you. 

Top 15 Frequently Asked Questions about a SDIRA

1. What is an SDIRA?
   Self-directed IRAs (SDIRAs) and solo 401(k)s work like their conventional counterparts with two powerful exceptions: 

• Self-directed plans allow alternative investments th
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When I was 2 or 3 years old, my mother took me on trips to the library almost every week. While she checked out the latest mystery novels, I always went to the same shelf in the children’s section and pulled down the same worn, tea-colored book called “I Can’t, Said the Ant.” I must have made my mom check that book out 50 times. I had every word memorized, every illustration emblazoned on my brain, and every character befriended in my daydreams.

In case you missed out on this epic, the basic plot is that a teapot falls off the counter and breaks its spout, and if it isn’t put back up, it will die some horrible teapot death. All of the denizens of the kitchen—from the dinner bell to the pie to the pot—beg the (oddly, single) ant in the kitchen to get the teapot back to the counter and repair the broken spout.

Much rhyming ensues (“I can’t bear it, said the carrot” is one that still sticks with me), and ultimately, the ant, who initially, as you might guess from the title, doesn’t see how he can manage it, rounds up a work crew of insects and rescues the unlucky teapot from the floor.

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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. Th
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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 evide
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I remember when I attended my first seminar back in the 80’s the speaker said you have to have a system and discipline. I knew what the system was because he was teaching it. But I did not know what the discipline was until I began to apply the system. The discipline is that you have to take the action to make the system work properly. Through months and years of trial and error, I now know what he meant by discipline. I had to discipline myself to always take action, even when I didn’t feel like it. Despite all the easier softer ways of doing things today, I still sometimes don’t feel like it. But I force myself to take action.

Many years ago, I found something on the internet that I printed and framed and it is on my office wall. It’s called, the “7 Excuses”.  I can’t do it, I’m not feeling it right now, I’m too busy, I’m too tired, There’s no guarantee it’s going to work, I’m not good enough, and my luck sucks. I still to this day do not know who the author is, but I read that from time to time to keep me motivated. I always check to see if I’m making excuses. Let’s break it down.

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As a hard money lender, I see a lot of closing statements (aka HUDs) from many title companies. I’ve noticed an annoying trend that is also disturbing.

When 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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