THE INVESTOR OREIA PREVIEW!
At the November 17 Meeting
Presented by Multiple Speakers
dŚĞ EĂƟŽŶĂů ͞EĞǁ Strategies Summit”
2016
ĨŽƌ ZĞĂů ƐƚĂƚĞ /ŶǀĞƐƚŽƌƐ ĂŶĚ >ĂŶĚůŽƌĚƐ ĂŶĚůŽƌĚƐ
^ĂǀĞ dŚĞ ĂƚĞ͊ November 3 - 6 Great Wolf Lodge Conference Center Mason, Ohio
Save Money On Taxes and Your CPA Presented by Scott Ellsworth The Real Estate Invstors Association of Greater Cincinnati (REIAGC) will bring an evening full of valuable business information that you can’t afford to miss! The meeting includes Scott Ellsworth, CPA. Scott will share how to: Save Money on Taxes and Your CPA! Saving more gives you more for your next deal! Attendees will learn: 1. Ideas to cut your tax bill down. 2. Things that keep down your CPA’s fee. 3. Long term strategies to win at taxes.
The General Membership Meeting for November 3, 2016, will be held at the Great Wolf Lodge in conjunction with the OREIA convention! Attend and get a sneak peek at some of the best real estate investment education of the year! What’s on tap at OREIA? Check out www.oreiaconvention.com and find out!
Join us for the early meeting on Thursday, November 17, 2016, beginning at 6 pm for our night of experts! The meeting is located at the Crown Plaza at 5901 Pfeiffer Road in Blue Ash, Ohio.
DON’T COME TO BLUE ASH AS WE WILL BE IN MASON!!
REIAGC WOULD LIKE TO WISH YOU A WONDERFUL THANKSGIVING AND THANK YOU FOR BEING A MEMBER!
10945 Reed Hartman Hwy | Ste. 113 Cincinnati, OH 45242 P: 513 407-3137 www.cincinnatireia.com
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2016 BOARD OF DIRECTORS & COMMITTEE CHAIRS
NOVEMBER 2016 Sunday
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President Anita Johnson 513 334-0444 Vice President Drew White 513 207-9846 Secretary Jim Shapiro 513 515-6717 Treasurer Scott Ellsworth 513 272-8400 Board Members Eric Kottner Narendra Mundhe Cheryl Long Linda Hull Tom Terlau Association Manager Nancy Terry 513 407-3137 Cincinnati REIA 10945 Reed Hartman Hwy | Ste. 113 Cincinnati, OH 45242 P: 513 407-3137 | F: 844 734-2472 www.cincinnatireia.com
Disclaimer
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The REAL ESTATE INVESTOR is published 12 times a year by the REAL ESTATE INVESTORS ASSOCIATION OF GREATER CINCINNATI. The subscription cost is $120 per year. First class postage paid. © Copyright 2016 by the REAL ESTATE INVESTORS ASSOCIATION OF GREATER CINCINNATI. All rights reserved. Reproduction or dissemination in whole or in part, in any form whatsoever, is expressly prohibited. Printed in the USA. The information contained herein and information shared at meetings and events is believed accurate, but it is not guaranteed or warranted in any manner. The information is provided with the understanding that neither the author(s), program speaker(s), nor the publisher (or its directors, officers, employees or agents) are engaged in rendering legal, accounting or other professional advice. REIAGC does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. We recommend you perform your own due diligence and seek appropriate legal, accounting, or other professional advice before making any investment. TM
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WHOLESALING SUBGROUP
6:30 pm | Perkins 7108 Hamilton Avenue North College Hill Michelle Clayton - 513 400-4937
GENERAL MEETING
7 pm - OREIA Conference Great Wolf Lodge, Mason
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INVESTORS LUNCH
11:30 am - 1 pm Century Inn Restaurant 10675 Springfield Pike Dave Jasper - 513 942-5110 or Max Arroyo 513-772-5736
LANDLORD SUBGROUP
6:30 pm Crosley’s Sports Cafe 4901 Vine Street, Cincinnati Mary Brickler, 513 557-8632
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GENERAL MEETING 6 pm - Save Money on Taxes and Your CPA Crowne Plaza Blue Ash
NORTHERN KENTUCKY FOCUS GROUP 6:30 pm at PeeWee’s Place 2325 Anderson Road Crescent Springs, KY Brandon Brewer - 859-240-7339 Tom Terlau - 859-653-6412
FORECLOSURE NOTE BUYING SHORT SALE SUBGROUP 6:30 pm, Wendy’s Restaurant 5909 Mulhauser Road Deb Meyer - 513 266-4008 or John Dohtery - 859-653-3290
CREATIVE BUYING AND SELLING FOCUS GROUP 6:30 pm Perkins, 7108 Hamilton Avenue North College Hill
MISSION STATEMENT
OF THE REAL ESTATE INVESTORS ASSOCIATION OF GREATER CINCINNATI (REIAGC) • Encourage our members’ success through education and professional services • Represent REIAGC members as positive, ethical contributors to the economic and the social well-being of our community
20152016 2 | The Investor ||August November
PRESIDENT’S CORNER
By Anita Johnson, REIA of Greater Cincinnati President November is one of the most anticipated months here at the Real Estate Investors Assoiation of Greater Cincinnati (REIAGC), as it is time for the annual Ohio Real Estate Investors Association (OREIA) Real Estate Strategies Summit (also known as the OREIA Conference). Once again we have the benefit of it being held right here in Cincinnati at the Great Wolf Lodge. With that in mind, our regular Thursday night meeting held on the first Thursday in November (November 3) will be held at the Great Wolf Lodge. Please make a note of this as you want to make sure you go to the right place for our meeting! This year’s Thursday night speaker will be Dick Desich, the founder of Equity Trust Company. Not only do you want to be at our Thursday night meeting at Great Wolf Lodge, you also want to attend the entire conference – OREIA is THE largest real estate education conference in the country. Nowhere else can you u go to hear the best strategies for building ng wealth and earning cash in today’s mararket for four full days….and this year’s r’s conference is expected to have al-most 800 attendees from all over the country. Talk about networking and getting everything you need to be successful in one place! And by the way, since the conference is right in our own backyard, REIAGC is considered to be the host REIA, so we e want everyone to be there.
At our Annual Meeting last month, you were able to hear about some of the accomplishments over the past year and the journey that we are on. As we continue the work to develop quality education programming plans for 2017, we want to make sure we’re addressing the needs and requests of our members. We’ll do that check with you at our 2nd meeting in November (yes, after you’ve gone to the OREIA conference and heard all the great strategies that people are doing). During the November 17 meeting we will take some time to get your input on what topics you want to know more about in 2017 – from our General Member meeting topics to the speakers that we bring in – so that we can make sure it’s incorporated into our overall plan for next year. This month there will not be an all-day Saturday session, since we know that all of you will have spent the full four days at the OREIA Conference (Thursday November 3rd through Sunday November 7th)! Remember that we are looking for volunteers – if you would like to help us at the conference, please click on the link in the email that you received and sign up for one of the available slots. You’ll have lots of fun and meet a lot of people. Finally, we celebrate Thanksgiving toward Fina the end of this month. We all have a lot to be thankful for, so make sure to take time to spend the holiday with friends ti and family and give thanks for all your blessings. Have a great November!
Anita Johnson A
REIAGC ANNOUNCES THE 2017 BOARD OF DIRECTORS SLATE Running an organization the size of the Real Estate Investors Association of Greater Cincinnati (REIAGC) doesn’t come easily and it doesn’t happen with just a few folks. The REIAGC Board of Directors is a group of leaders who volunteer their time in pursuit of the growth of this industry, group and its members. All members are invited and encouraged to participate in leadership and governance. On October 20, 2016, the following slate was presented and confirmed by the REIAGC membership at the general membership meeting.The 2017 Board of Directors includes: Ben Bauer Gina Bowden
Scott Ellsworth Linda Hull Anita Johnson Eric Kottner Cheryl Long Narendra Mundhe Tom Terlau Drew White Please take a moment to thank these volunteers for their time and service. If you would like to learn more about the rewards of leadership and how you can participate, contact the REIAGC office at 513-407-3137.
The Investor
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FRIDAY MORNING MEET UP SCHEDULE CHANGE Due to scheduling and the holiday’s, the REIAGC Friday Morning Meet Up will be taking a break. We will not have a meeting in October nor November. Please plan on attending our next meeting on December 2!
NOVEMBER INVESTOR GROUP LUNCHEON
WELCOME NEW REIAGC MEMBERS!
At our November 8th meeting Chuck Vonderhaar, CPA, will help get you ready for what is coming this tax season.
REIAGC Would like to welcome its new members and thank its renewing members in the month of September:
Charles P Vonderhaar CPA LLC, a Cincinnati CPA firm for 35 years, provides a wide variety of accounting, tax and financial management services tailored to meet the needs of both individual and business clients. Their certified public accounting (CPA) services are designed to make your job easier and provide you with more time to focus on building your business. They keep abreast of tax law changes throughout the year. Chuck is a long time member of REIAGC and is a valued resource Location: Century Inn Restaurant, 10675 Springfield Pike, Cincinnati, OH 45215. Phone: (513) 771-4816. Time: 11:30AM – 1:00PM
Benjamin Bauer - The Bauer Firm, LLC Donna Bauer – The Bauer Firm, LLC Jimmy Blanton Lisa Byrd Meriah Coleman Tom Cannon – TC Properties Thomas Durr Clinton Ferguson Ana Gallegos - Yavorsky Paul Glenn Joyce Green - Real Estate Solutions Stephen Hering - LD and SL Properties Jesse Hipps - HomeSource Properties Beatriz Ibanez Brittany Kiah - Secured Investment Lending Corp. John Marietta William Metts Charlie Milazzo - Sibcy Cline Betty Oats Kernard Parker Oliver Pereira - GWP Investments Mark Sauer - RMS The Property People, LLC Daniel Scalfaro Andrea Schild Joseph Shupe Brian Siroky Rosemary Skeen Stephen Skeen Scott Stanfield Adam Terpstra - Platinum Home Solutions Jared Torrence Joe Walker Maurice Warren Stephen Yavorsky Sergio Zapata Nathan Zeidler
THE FORECLOSURE NOTE BUYING SHORT SALE SUB GROUP NO MEETING NOVEMBER OR DECEMBER 2016 Due to the holidays falling on the 4th Thursday of November and December The Foreclosure Note Buying and Short Sale Sub Group meeting will be taking both December and November off from meeting. We’ll be spending our time working on new topics and speakers for you. So come January, you’ll have a fresh attitude and we’ll have fresh topics for you to get the most out of our time together. So with that said, let me be the first to wish you Happy Holidays and may all your goals and real estate dreams … that you have written down, not just imaged or wished for in your mind … come true! A goal is not a wish. So take the time to plan and strategize NOW how to get there and make it happen! See you January 26th, 2017 at Wendy’s Restaurant on Mulhauser Road off of the I-75 Union Center Exit in West Chester. Happy Holidays from Deb and John!
Benjamin A. Bauer, Attorney at Law 10999 Reed Hartman Hwy., Suite 108A (513) 851-7600 Ɣ ben@thebauerfirm.com -
Wills, Trusts, & Probate Ɣ Real Estate Ɣ Evictions LLCs Ɣ Small Business Law Ɣ Civil Litigation -
Licensed in Ohio, Kentucky, & Florida -
www.thebauerfirm.com
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November 2016
The Investor
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THE 2016 OREIA NATIONAL REAL ESTATE SUMMIT FOR REAL ESTATE INVESTORS & LANDLORDS NOVEMBER 3RD-6TH | GREAT WOLF LODGE AND WATER PARK - CINCINNATI, OHIO COLOR YOU INSPIRED... What’s more motivating than 15 of the most successful investors and entrepreneurs in the United States presenting their best strategies for building wealth and earning cash in today’s market for 4 solid days? Easy...having 750 like-minded success-seekers to share the experience with! And that’s just what you’ll get at the 2016 National Real Estate Strategies Summit—the Nation’s largest conference for real estate investors, landlords, rehabbers, wholesal-ers, note buyers, and the folks who support them! COLOR YOU READY... • Are you really ready to grab the reins of your own financial future, and take an active role in your own wealth? • Are you ready to step up and take your real estate business to the next level? • Are you ready to stop playing games and devote some real time and energy to making that happen?
and growth you give yourself. COLOR YOU INFORMED... There’s nowhere else in the country, and no other time of the year, where you can absorb the best strategies from the top minds in real estate. There’s no place like the Summit to explore new ideas in: • Multiple asset classes, including residential, commercial, and notes • Every way to finance a deal from conventional to owner to private financing • Negotiation and marketing ideas that put you ahead in the “hot” market • Best ways to make money in the current economy— wholesaling, renting, rehab-bing, and more Attendees, experts, and real estate association leaders all agree: the National Real Estate Strategies Summit by OREIA is the most informative, up-to-the-minute, success-building, and downright FUN real estate conference in the country.
COLOR ME EDUCATED... 15 Super Experts to School You in Most Up-to-the-Minute, Money-Making Topics George Antone: Be a Debt Millionaire * Donna Bauer: Forget Properties, Buy Financing * Dick Desich: How I Invented the IRA Industry * Gene Gaurino: Super Profits in Senior Housing * Larry Harbolt: Down to Earth Seller Financing * Kathy Ken-nebrook Get Your Phone Ringing off the Hook with Motivated Sellers * John Martinez: Close More Deals * Joe McCall: Build a Passive Wholesale Business * Frank Rolfe: Mobile Home Park Profits *Brad Sides: Analyze Your Market Right * Jeffrey Taylor: 10 Ways to Increase Your Rental Cash Flow* and more... All these sessions and the trade show as part of your tuition at just $197 per person, $297 for 2 ($40 off for local association members) THE ADVANCED DEAL MAKER’S FORUM Truly Advanced Deal-Making, Asset Protection and Tax Strategies on Thursday from 8:30 am to 5:00 pm for $247 for 1, $347 for 2 (includes main convention). You must have a minimum of 5 year’s experience and 50 deals completed to attend ALL-DAY WORKSHOPS THURSDAY NOV. 3RD 8:30 A.M.-5 P.M. Super-Detailed, All-Day Education
Fast Track to Wealth with Ron Legrand The Godfather of Real Estate returns to show you the fastest and easiest ways to make $10,000 cash, fast! In today’s market, including strategies that let you pay full price. The Top 5 Secrets to Getting Properties Cheaper Than Anyone Else with Jason Roberts and Rachael Schneider If your problem is not enough deals, spend the day learning how to create and track marketing that rocks. Choose either detailed all-day seminar FREE with your tuition! YOUNG ADULT ENTREPRENEURIAL ACADEMY WITH INSTRUCTOR JIM WOOD Saturday and Sunday 8:30 a.m. - 5 p.m. Bring your 15-22 year olds and we’ll show them how to build financial independence in the real world. Just $17 when you pre-register with adult admission. SATURDAY EVENING BANQUET: Enjoy networking AND in-spiration with dinner for just $37 per person. COLOR YOU CONVINCED— Join Us November 3rd - 6th in Cincinnati For the Real Estate Event of the Year! Log on to www.OREIAConvention.com or call us at 888996-7342
Then you’re ready for the Summit—it’s a gift of time, focus,
Max J. Arroyo, Jr. Vice President Investment Property Asset Manager Berkshire Hathaway Profesional Realty Commercial Services
7311 Tyler’s Corner Place West Chester, OH 45069 Direct: 513-772-5736 Leasing and Service: 1-888-288-5912 E-Mail: Marroyo@bhhspro.com www.firstcirclepm.com A member of the franchise system of BHH Afiliates, LLC
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November 2016
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THE CAT’S OUT OF THE BAG! BUYING, SELLING, CREATING AND RESTRUCTURING NOTES MEANS BIG PROFITS BY DONNA BAUER
Donna Bauer, AKA “the notebuyer”, started her business from her kitchen table while being a stay-at-home mom to 4 boys under the age of 8. Now she’s among the top experts in notes in the U.S., and she’s coming to the 2016 OREIA National Real Estate Summit to share her experiences with you! Register at www.OREIAConvention.com. I’ve always said that notes are the best kept secret in real estate, but I’m afraid the cat’s out of the bag now. More and more investors are realizing that notes are absolutely vital in taking advantage of all of the different opportunities available in today’s unusual real estate market. Whether you want to create notes to buy and sell properties without bank financing, or you want to buy and sell other people’s sellerfinanced notes, or you want to buy defaulted notes that are held by banks—tremendous profits are available to the astute investor who incorporates note strategies into his overall investment plan. With banks tightening their lending policies and less and less people qualifying for bank loans, sellers naturally turn to
seller-financing to move their properties. By removing banks from the equation, the number of potential buyers immediately sky rockets when owner-financing is offered. Since there is no red tape from loan committees or board meetings to slow you down, the transaction can often be wrapped up as quickly as your title company can complete the title work and schedule the closing. In addition to offering a larger pool of buyers and a quick closing, seller-financing often commands a higher sale price than normal for the seller. Plus, the seller can wind up with a very safe investment offering a higher rate of return than certificates of deposit and other conventional investment vehicles. Careful screening of the buyer’s credit and employment history helps to ensure a safe investment with minimal hassle. Requiring a larger down payment can often offset any credit glitches the buyer may have. Ultimately, the security of the investment lies in the real estate itself. If the buyer defaults, the seller can foreclose, take the property back if necessary, and resell it again - keeping whatever money was paid on the first sale.
Building Value LLC 4040 Spring Grove Ave. CincinnaƟ, OH 45223 (513) 475-6783 www.buildingvalue-cincy.org 8
The abundance of seller-financed notes has created an absolutely awesome opportunity in the secondary market for those who want to cash in on the fantastic opportunities in real estate without dealing with the headaches of owning the property - the tenants, the trash, and the toilets, as they say. Whether you are looking for occasional or part time income or whether you are looking to build a full-time business, buying and selling other people’s seller-financed notes can be very lucrative in today’s market. Many sellers have been forced to carryback mortgages in order to sell the property, when in fact they really would have preferred to have the cash in hand. Once the note is “seasoned,” i.e., the borrower has made six to twelve months of on-time payments, you can help the note holder convert the note and mortgage to cash. And the best part of all is that you can do it without using any cash or credit of your own! Notes can be “flipped” very easily without the hassles that are typically encountered when flipping properties. Simultaneous closes are not an issue when you are flipping the note instead of the property. Plus, most note sellers realize the time value of money and fully expect to sell their note at a discount, which makes it easier to negotiate nice profit spreads than when dealing with the real property. Although there are many ways to market for prospective note sellers, it can be as easy as purchasing a list of note hold-
ers and sending out letters or post cards. With my personal direct mail campaign, I averaged a six percent response rate and a one percent close rate. So for every one hundred letters that I sent out, I closed one deal. If you have your own money to invest, you can earn exceptionally high returns by buying and holding discounted, seller-carryback mortgage notes. Most people, however, use a simultaneous close to buy and immediately re-sell the note to a private investor or an institutional buyer. This enables you to realize a handsome profit right away without having any of your own money invested. You don’t even need your own credit. It’s very simple - buy low, sell high, and make money on the spread! Many times, more money can be made by buying and selling other people’s notes than by dealing with the property itself - and many people aren’t even aware of the opportunity! Another completely different note strategy, which is often even more lucrative, is to buy defaulted notes from the bank. For many years, I have encouraged investors to “buy the note” instead of doing a short sale. Now that short sales are so cumbersome, folks are realizing I was telling them the truth—buying the note is so much quicker and easier! One of my favorite strategies is to use the defaulted note as a backdoor to acquiring the property at a steep discount. I teach how to coordinate your deal so that you can buy the
John C. Wagner | 513.857.9179
November 2016
The Investor
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note from the bank and, at the same time, legally and ethically get the deed from the homeowner without any risk or hassle. Once you have the deed, you can do whatever you want with the property - sell it, rent it, or even move into it yourself! If you like dealing with the paper instead of the property, then you probably will enjoy the fantastic profits that can be made by purchasing the note from the bank and restructuring the note with the homeowner. Buying the note and using a forbearance agreement is the only legal way to keep a distressed homeowner in the property. This can be a great win/ win transaction. In fact, many investors use this as a ministry to help homeowners who are in default on their bank mortgage. On the other hand, instead of a long term forbearance, you may want to simply “settle” with the homeowner.
the loan on their over-leveraged house. In my life time, there has never been a better time to do notes. Except for all cash deals, notes are a fundamental part of every real estate transaction. Once you have an understanding of how to create, buy, sell, modify, or hypothecate a note, you’ll be amazed at the tremendous profits that can be made with notes, not to mention how many more deals you’ll be able to close by incorporating notes into your investment strategies - and you don’t even need your own cash or credit to get started! Whether you want to acquire properties - or stay clear of properties - notes are a perfect strategy for cashing in on the fantastic opportunities available in today’s unique real estate market!
Often times, you can purchase second mortgages for pennies on the dollar - whether you buy them direct from the bank or as a one-off from a pool of notes that an investor may be selling. A word of caution though - make sure that you know what you’re doing and you are aware of the risks before buying defaulted seconds. They are a completely different animal than other discounted mortgage investments and carry a much greater risk. Nonetheless, astute investors are making boatloads of money on defaulted seconds! Many homeowners are anxious to settle these defaulted notes, and have even been squirreling money away for just that purpose, waiting for the opportunity to make a deal to pay off
dŚĞ EĂƟŽŶĂů ͞EĞǁ Strategies Summit”
FOLLOW THE MONEY IN RESIDENTIAL ASSISTED LIVING BY GENE GUARINO
Gene Guarino has been investing in real estate for over 20 years, but in the last 5, he’s focused all of his efforts on high-profit, high-demand senior housing. Learn more about what he does and how it can generate HUGE rents on a single family home at the OREIA National Real Estate Summit, November 3-6 in Cincinnati. More info at www.OREIAConvention.com. How much can I make? That is a common question I get when people come to the Academy to learn about Residential Assisted Living. There are two directions you can go. • Own the Real Estate and rent it to an operator • Own the Real Estate AND operate the Residential Assisted Living business as well. If you own the home and lease it to an operator, you can get up to twice the fair market rent. As a real estate investor, that’s going to change your positive cash flow from a few hundred dollars to potentially a few thousand dollars a month. Significantly different.
2016
ĨŽƌ ZĞĂů ƐƚĂƚĞ /ŶǀĞƐƚŽƌƐ ĂŶĚ >ĂŶĚůŽƌĚƐ
In addition, your tenant will want a longer lease - 3, 5 or even 10 years. They will not want to lose their lease. Typically they will also be a lower impact tenant that will take care of the property better than the average tenant. They are generating income and they will want the home to be kept up and well maintained to generate that income.
surprised when they discover that this can be done in a residential neighborhood even with an HOA. Knowing the best locations and then knowing the terms and the questions to ask are critical. Without that knowledge you will most likely make costly mistakes and get a simple response of “you can’t do that” from the town or city that your property is in. The amount of rent you charge will depend on many factors including: what improvements are you willing to do, what are you willing to allow the tenant to do, length of the lease, rent concessions etc. How much profit can the operator of the home make? The national average for a private room in an assisted living facility is $3,600 per month per person. If your home is licensed for 10 residents, that is $36,000 in potential gross income. If the expenses and the debt service $26,000, you are netting $10,000 a month in profit. If you focus on a “nicer” home you can charge higher than average rent. The expenses are virtually the same with just the potential increase in the debt service. If your debt service increases by $3,000 a month and you can generate an additional $10,000 to $20,000 a month, that’s pretty simple math.
Make More Money With Less Hassle
You may be asking, why would someone be willing to pay you up to twice the fair market rent for your home? Simply put, they will be making a huge profit so it works for them. Location is the key. If you have the right location and the home is the “right” home for operating this business, then it is a win win situation. Many people can’t or choose not to buy the location they operate their business in. Not everyone is a savvy real estate investor. Zoning is one of the first considerations. Many people are
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^ĂǀĞ dŚĞ ĂƚĞ͊ November 3 - 6 Great Wolf Lodge Conference Center Mason, Ohio
Call one of our REIA member agents to learn more about how you can make more money with less hassle. Chad Wuebker 513-515-5266
513-851-4021
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November 2016
The Investor
Shea Lawrence 513-673-2972
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www.federleinc.com
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“Having a Strategic Plan has Proven to the be the Key to My Success”-~ Anthony Robbins These words have been proven true for me time and time again. Why would I reinvent the wheel when someone has already worked out the tweaks for me? I can prove to be a more profitable and successful business owner by following those before me who are more successful. Most of us get into real estate because we are inherent entrepreneurs. We have grand ideas and want to only answer to ourselves. That can be a blessing and a curse. Because we are dreamers we can be easily overwhelmed by shiny objects and can get lost in all the options. What we need is a proven plan to ensure our success. Ever since I was little I knew that I wanted to be an entre-
preneur. Of course I didn’t know that was the word for it back then, I just knew that I enjoyed coming up with ideas and “bossing” the other kids around. I enjoyed being a leader and someone others looked up to. As I got older and I matured I started dabbling in small businesses. At the time, I wasn’t sure what I wanted to do but I knew I didn’t want to work for someone else the rest of my life. Just out of high school I took a job at a collection agency and quickly rose up in the ranks, but it wasn’t enough for me. That old feeling of wanting to branch out, do my own thing started to take over, so one day, I walked into my boss’s office and told him I quit. I was 21 one years old without any job prospect. I went home that night and after talking to a buddy of mine who was a mortgage broker and was rolling in dough, decided I could do that! One problem, I knew absolutely nothing about the mortgage industry. I mean I didn’t even own a house! So I did the only thing I knew to do. I started researching who the best in the best in the industry was and I found a book that offered me a “blueprint” on how to run a mortgage company. When it said I need to get a fax line, I did. When it said I need to start hiring processors, I did. When it said you need to make connections with local
Well we all know the story, 2007 comes and the mortgage crisis hits and being the type of person I am, I try to make it work. I kept at it for 3 years, trying to save my employees livelihoods, bleeding money every month until there wasn’t anything more to bleed. I hit rock bottom; lost my house, my cars, my company and had to file Chapter 7 bankruptcy. Suddenly I was back to that 21 year old kid again with lots of ideas but no job prospects. This time I was smarter though. I knew that all I needed to do to get back on my feet was to find a great “Blueprint” I mean if it had worked once before, why wouldn’t it work again? So in October 2010, the same month my chapter 7 bankruptcy was discharged, I decided to start over again. I knew I wanted to do something in real estate so I started researching who was the best of the best out there. I wanted to learn from the best and follow their plan, step by step as I knew that their way WORKED! I found a fabulous mentor and signed up for his course and coaching. One problem, I didn’t have any money, but I did have 30 days to make my first payment. I took the leap of faith and dove in knowing that I had 30 days to make something happen so I better make it count.
That is the power of a blueprint.
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Jason Roberts is a rehabber who got started in real estate only AFTER he went bankrupt during the 2007-2008 financial crash. He developed a system for finding off-market deals, managing the process of buying and rehabbing them, and still having a life, which he’ll share at the 2016 OREIA convention.
By the end of 2011 I had flipped over 100 homes, making just shy of $3.6 million dollars all from following a plan. It was just like before, if my coach said send this letter out the first day, I did, if he said pull your data from here, I did. If he had said, you need to dye your hair pink and wear a tutu, I would have because he had already figured out what was working and I didn’t need to! I had found someone that had gone through and figured out what was working and what wasn’t so I didn’t have to. All I did was follow the steps and was able to go from nothing to something incredible.
start ing at
BY JASON ROBERTS
realtors, I did. I followed every step in that book from start to finish and turned a company that started on a folding table in my spare bedroom into a company grossing millions of dollars a year with over 50 employees. Just by following a blueprint.
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THE POWER OF A BLUEPRINT
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STRIVING TO REACH YOUR FINANCIAL GOALS TOGETHER
Investing in real estate is a serious decision. Don’t go it alone. • Investment Analysis and Due Diligence Assistance • Accounting Services Different levels of service to match your budget • Clean, organized records means less hassle at tax time • Tax Planning and Compliance
November 2016
& Associates
513-272-8400
What you’ve always dreamed of, someone else who knows accounting and tax to handle it for you. 12
Ellsworth
The Investor
9624 Cincinnati Columbus Road Suite 209 West Chester, OH 45241
13
ATTRACTING EVEN MORE MOTIVATED SELLERS IN AN EVER CHANGING MARKET By KATHY KENNEBROOK, THE MARKETING MAGIC LADY Kathy Kennebrook does wholesale, rental, and retail deals in the Tampa area and finds all of them through direct mail. She’ll explain what and to whom in Cincinnati during the OREIA convention. Find out more at www.OREIAConvention.com I am often asked whether or not there are still good real estate deals out there with the market constantly changing like it has been. The real estate market will always experience ups and downs and as real estate investors we need to be trained on utilizing the best tools to locate the motivated sellers within those markets. We also need to learn to be flexible in our marketing in order to bring in the highest number of new deals. I often hear comments like, “you were just lucky” or “you got in on the real estate game when there were still lots of deals out there, it’s just not that way anymore”. Those folks couldn’t be more wrong in their thinking. This is just “stinkin’ thinkin’” as my friend Ron LeGrand would say. There are always deals to be made if you know where to look for them no matter what your local real estate market is doing. This is just a matter of having a marketing mind. Using direct mail to attract motivated sellers is always one of the best tools in the real estate business for locating highly motivated sellers on a regular basis. I also utilize other tools along with my direct mail, such as lumpy mail pieces to make my direct mail stand out or I will send CDs to my sellers explaining to them why they should work with me. Using a little creativity with your direct mail campaigns will increase the re-
sponse rate significantly. There are several reasons for this. The first reason is that generally speaking, there is no competition for these properties whatsoever. Most of your competitors don’t use targeted direct mail campaigns to locate motivated sellers; and the sellers themselves generally don’t know they are going to sell their property until they receive contact from you. They know they have a problem to solve regarding their property; they just don’t know how to do it until they receive contact from you and know you are there to help them. And I have found from my own experiences in the last several months that as many Real Estate Investors got locked into the foreclosure and REO markets that many of these other sellers who are excellent leads often got left out. No one was working with them so this left a whole market open for many very profitable deals for me. Now that there are a lot fewer foreclosures and REOs investors are looking for more creative ways to find more deals. Secondly, once you build a machine whereby you have direct mail going out on a regular basis, you create an ongoing source of leads as you continue to build credibility with the sellers you are mailing to regularly. Not only do you have deals coming at you today, you are constantly planting seeds for future deals. I also use a software program called RealProspect to track all of my direct mail campaigns, my sellers and my deals. This makes it a lot easier to keep track of my marketing and my deals. Now is definitely the time to start increasing the number of direct mail campaigns you have going out. When the holidays come around and property tax bills are going out, sellers are even more anxious to sell properties they have no interest in keeping. Direct mail campaigns are the only marketing technique where you can create a scenario of ongoing leads. As these sellers’ situations change, they will contact you first because you have taken the time to create credibility with them through your mailings, even if they are contacted by someone else in the interim. You can also control the number of sellers who are contacting you at any given time by controlling the number of mailings that go out. There is no other marketing tool out there where you are in total control of what you are doing in your business. Be sure and check out my article next month on even more ways to increase the number of deals coming in to your pipeline.
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November 2016
Vendor Members Directory Business Accounting
Accounting
Company
Contact Info
Chuck Vonderhaar, CPA
Chuck Vonderhaar 513-563-0598 chuck@cpvcpa.com
www.cpvpa.com
Ellsworth & Associates, CPA’s www.ellsworthcpa.com
Building Supplies
Butler County Edge-Co www.edgcowholesale.com
Scott & Deanna Ellsworth 513-272-8400 sellsworth@ellsworthcpa.com
Business
Company
Contact Info
Inspection Services
Criterium – Cincinnati Engineers www.criterium-cincinnati.com
Mathew Klein 513-474-9600 criterium-cincinnati@fuse.net
Property Mgmt
Berkshire Hathaway HS Commercial Division
Max Arroyo 513-772-5736 marroyo@bhhspro.com
www.firstcirclepm.com
Brent Fening 513-868-2068 edgcobp@yahoo.com
Rehab & Restoration
Cincinnati Home Improvement Co., LLC www.cincyhomeimprov.co
Building Supplies
Pease Warehouse
Building Supplies
Surplus Warehouse
Cleaning Products
OdorXit www.OdorXit.com
Cleaning and Evictions
Swept Away Property Cleanouts
Exterminator
Formula Exterminators
www.peasewarehouse.com
www.surplus-warehouse.com
Financial Services
Badcat Properties, LLC
Financial Services
Dayton Capital Partners
www.badcatproperties
www.DaytonCapitalPartners.com
Financial Services
Excellent Financial
Financial Services
www.guardiansavingsbank.com
Guardian Savings Bank
Financial Services
ReCasa Financial Group, LLC
Financial Services
Spring Valley Bank
Floor (wood) Restoration System Floor Restoration
www.recasafinancial.com
www.springvalleybank.com
Fabulous Floors of Cincinnati
Stephen Pease 513-867-9926 Stevep@peasewarehouse.com
Rehab & Restoration
Brent McCleneer 513-245-2222
Rehab Project Mgmt
swcincinnaticlrn@ecbarton.com
Exit Best Realty
Sasha Allen 513-344-3972 TeamAllen@fuse.net
Real Estate Brokerage
Federle Inc., Realtors
Fred & Cindi Goff 513-671-7378 cindi.goff@gmail.com
Real Estate Brokerage
Outside The Box Real Estate
Sam Moore, Jr. 513-485-8599 moorejrsam@hotmail.com Darrin Carey 937-458-3303 Darrin@DaytonCapitalPartners.co m
Kelvin Mitchell 888-493-6075 excellentfinance@aol.com Sharon Altman 513-923-4100 saltman@GuardianSavingsBank. com
Nancy Lawler 614-221-6770 Dave Woodcamp 513-761-6688 springvalleybank@cinci.rr.co m David Caldwell 513-453-4006 Donald Boling 513-300-9203
Legal
The Bauer Firm, LLC
www.mcswaincarpets.com
www.thebauerfirm.com
Realtor Real Estate Services
OlmecReflectionsinc@gmail.com
www.bestexit.com
www.federleinc.com
www.OTBrealestate.com
Homes By Bethanny www.homesbybethanny.co m
CORE Group www.coregroupre.com
Real Estate Services
Exit My Foreclosure
Restoration
Icon Environmental
www.ExitMyForeclosure.com
Josh Appelman 859-916-5201 josh@united-installs.com Dan Poske 513-301-0247 dposke@cmsllc.com Marty Russell 513-545-1637 martysrussell@gmail.com Dennis Taylor 513-851-4021 dennist123@aol.com Christina Carey 513-509-2705 Christina@OTBrealestate.com Bethanny Johnson 513-307-9349 bethanny@bethannyjohnson.com Jiries Dawaher 513-504-5565 jtd8.re@gmail.com Kristin Caledine 513-509-9814 Kristin@ExitMyForeclosure.com Jeremy Clayton 513-396-6653
www.IconPropertyRescue.com
clayton@IconEnvironmental.net
Security
ADT Security Services
Kristen McClanahan 513-497-7990 kmcclanahan@adt.com
Tenant Screening
National Tenant Network
John Spafford 877-579-3520 john@ntnonline.com
Title
Servicelink
Wholesale Properties
You Buy Houses
Financial Services
Secured Investment Lending
nlawler@recasafinancial.com
Olmec Reflections, INC. McSwain Pro Floors
BildWise www.BildWise.com
Real Estate Brokerage
davidcaldwell@ fabulousfloorsusa.com
Flooring
www.united-installs.com
Deb Meyer 513-266-4008 deb@odorxit.com
www.fabulousfloorsusa.com
www.olmeccarpetcleaninginc.com
United Installs, LLC
Christopher Penn 513-898-1878 cincinnatihomeimprovement@g mail.com
www.ntnonline.com
www.svclnk.com
www.youbuyhouses.com
John Wagner 513-857-9179 John.wagner@svclnk.com Drew White 513-471-0141 DrewWhitePix@gmail.com
Jon O'Connor 513-354-4400 joconnor@mcswaincarpets.c om Ben Bauer 513-851-7600 ben@thebauerfirm.com
The Investor
securedinvestmentlending.com
Brittany Kiah 407-878-2830 Brittany@securedinvestmentlend ing.com
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Cincinnati REIA 10945 Reed Hartman Hwy., Ste. 113 Cincinnati, OH 45242
PRESORTED STANDARD U.S.POSTAGE PAID
CINCINNATI, OH PERMIT NO. 777
REIAGC Meetings Cincinnati REIA is Moving! th Our General are held at: Beginning Thursday April 7Meetings our general meetings will be held at:
Crowne Plaza- Blue Ash 5901 Pfeiffer Road Æ” Cincinnati, OH 45242
Located at I-71 & Pfeiffer Road Be sure to come and check out our beautiful new location!