THE INVESTOR RAISING PRIVATE FUNDS Presented by George Antone, MpactWealth
At the Early August 4 Meeting SEC LAWS AND WHAT YOU NEED TO KNOW TO RAISE FUNDS LEGALLY Presented by Phyllis Brown, Cummins & Brown, LLC Real estate investing frequently involves state and federal securities law restrictions. Investors need to be aware of these restrictions and how they can best comply. In this session with Ms. Brown, attendees will walk away understanding: 1. The link between real estate investments and security offerings; 2. The Securities and Exchange Commission and its regulation of private offerings; 3. JOBS Act and Loosened Restrictions on Real Estate and other investments; 4. Real Estate Crowd Funding; 5. Pitfalls.
What if you could learn a proven way to generate cash flow from any investment method? Would it be beneficial to create a consistant and dependable monthly income stream? In this 90 minutes session, George Antone will share some of his secrets that position him in the top 1% of investors in the world. Here are a few of the things George will be teaching... •
How to structure your real estate investments to minimize risk and maximize upside.
•
How to quantify risk and
return, and how to adjust both metrics to make deals work for you. •
•
What key mistakes to avoid in order to earn consistent and dependable passive income. Structure deals for positive cash flow for investors and private lenders.
Join REIAGC at the main meeting on Thursday, August 4, 2016, beginning at 7:30 pm at the Crown Plaza Hotel in Blue Ash as we learn from the best of the best in the field of real estate funds! Register TODAY!
Attendees will also learn about the JOBS Act and how crowd funding have expanded opportunities for real estate investments. If you have ever wanted to know more about this complex area of funding, this is the meeting to attend!
FEAR IS A WAR IN YOUR MIND! SURVIVE INSTITUTE COMING TO REIAGC
FEAR is a war in your mind! Why do you visualize losing? Isn’t it time to equip your mind’s war with just a few choices that save you, in your imagination … and in reality? This is The Survive Institute’s 30th year dedicated to one mission: teaching law-abiding citizens as little self-defense as possible! Only what works! We transform Worriers … into Warriors! See inside this newsletter for more details on the Survive Institute’s meeting with REIAGC on August 18, 2016. 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
AUGUST 2016 Sunday
Monday
Secretary Jim Shapiro 513 515-6717 Treasurer Scott Ellsworth 513 272-8400 Board Members Eric Kottner Narendra Mundhe Cheryl Long Linda Hull Tom Terlau Vendor Coordinator Karen Wessel 513 371-6953 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
The REAL ESTATE INVESTORTM 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.
2 | The Investor ||August August2015 2016
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President Anita Johnson 513 334-0444 Vice President Drew White 513 207-9846
Tuesday
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WHOLESALING SUBGROUP
6:30 pm | Perkins 7108 Hamilton Avenue North College Hill Michelle Clayton - 513 400-4937
GENERAL MEETING
6 pm - SEC Laws and What You Need To Know To Raise Funds Legally 7:30 pm - Raising Private Funds Crowne Plaza Blue Ash
INVESTORS LUNCH
11:30 am - 1 pm Century Inn Restaurant 10675 Springfield Pike Dave Jasper - 513 942-5110 or Max Arroyo 513-772-5736
WEST SIDE SUBGROUP
6:30 pm Thai Taste 5120 Crookshank Road, 45238 Drew White - 513 207-9846
FRIDAY MORNING MEETUP 9 am to 11 am Crown Plaza Blue Ash 5901 Pfeiffer Road, Blue Ash Linda Hull - 513 549-7821 Cheryl Long - 513 429-2583
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GENERAL MEETING
6 pm - Survive Institute Crowne Plaza Blue Ash
CREATIVE BUYING AND SELLING FOCUS GROUP 6:30 pm Perkins, 7108 Hamilton Avenue North College Hill
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
LANDLORD SUBGROUP
6:30 pm Crosley’s Sports Cafe 4901 Vine Street, Cincinnati Mary Brickler, 513 557-8632
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
PRESIDENT’S CORNER
By Anita Johnson, REIA of Greater Cincinnati President It’s hard to believe that it’s now August already and that the start of the school year is right around the corner! Hopefully you’ve been enjoying the warm summer months and longer days and maybe even taken some time out to just have a little rest and relaxation. At the Real Estate Investors Association of Greater Cincinnati (REIAGC) we are constantly focusing on how we can meet the educational needs of our members as well as how we can provide continual learning experiences. Did you know that one of the biggest and best learning experiences at REIAGC is to participate in leadership? That’s right, it is through your participation and interaction on teams and committees that you learn even more – you’ll not only bring your skills and knowledge but you’ll also gain from the skills and knowledge of others. This month we have the 2-day Ohio Real Estate Investors Association (OREIA) Leadership Training sessions on Saturday, August 20 and Sunday, August 21. These sessions are for both current AND aspiring leaders. REIAGC would love to have more of our energetic and enthusiastic members to come on out and participate. Topics covered
throughout the weekend are not only relevant for association leaders but they can also be applied in your real estate business. Visit the OREIA website at www.OREIA.com or call 1-888-996-7342 to register. I want to take a moment to address an important message each of you received last month on the topic of personal safety. We at REIAGC want to both support our members and at the same time educate our members on the importance of personal safety. In light of this recent incident we at REIAGC will be bringing in a couple of self-defense experts to teach some very basic techniques that are very effective. You’ll also see a few articles highlighting the importance of this subject. Again, let’s all be mindful of personal safety in our businesses, and let’s continue to pray for the families of Bobby Jones and Crystal Warner. Finally, don’t forget to attend one of our seven subgroup meetings or the Friday Morning Meetup. These are great opportunities for you to learn and get to know your fellow investors. And remember, REIAGC is always looking for volunteers, so, if you have an interest in helping with any one of our events please let us know. As I always say, “everyone has something to contribute.”
Anita Johnson
INVESTORS LUNCH CREATIVE BUYING AND SELLING FOCUS GROUP: GROUP THE MAGIC OF PARTIALS On Tuesday, August 9, 2016, we will have a very special meeting. We have a wealth of experiences from our real estate investing histories. At our meeting we will be sharing best practices, sharing vendor experiences, and our 2016 second half plans.
Imagine this scenario: you y sell a property, getting rid of all the responsibilities of maintenance, management, and expenses. expe In return, you get cash now PLUS more payments in the future. PL Too To good to be true? Nah. Just carry ca back a mortgage, then sell a “partial”, assuring yourself money “p today and more money down the to road. This powerful strategy is alr most like magic, when you underm stand it.
Feel free to join us as we share information and hopefully help each other over the rest of 2016! Location: Century Inn Restaurant, 10675 Springfield Pike, Cincinnati Time: 11:30AM – 1:00PM If you have any questions, please feel free to contact the co-chair Max Arroyo at (513) 7725736.
Come to this month’s Creative Buying and Selling Focus Group meeting on Monday, August 22, 2016, at the Perkins located at 7108 Hamilt Hamilton Avenue in North College Hill beginning at 6:30 pm and learn all about it!
The Investor
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DID YOU HAVE FUN AT THE REIAGC SUMMER PICNIC? BY KAREN WESSEL, VENDOR COORDINATOR July 7th was another successful opportunity to meet other investors in a relaxed atmosphere of conversation and food. The word on the floor is that fun was had by all in attendance. If you attended, did you meet someone new who can help you move forward or did you re-connect with an old friend? Either way, the conversations kept going and we are thrilled to have them continue. Thank you for coming!
CORE Group | Jiries Dawaher www.coregroupre.com (513) 504-5565
We want to thank our generous sponsors for providing us with a great summertime fare: BBQ, Hot Dogs, Hamburgers, Potato Salad, and Apple Cobbler. What a treat! Be sure to let them know they are appreciated.
Supporting Sponsors: Dayton Capital Partners | Darrin Carey www.daytoncapitalpartners.com (937) 458-3303
MAJOR SPONSOR: Excellent Financial, LLC Kelvin Mitchell www.excellentfinancialloans.com (888) 493-6075
OdorXit | Deb McMillan Meyer www.odorxit.com (513) 266-4008
Criterium - Cincinnati Engineers | Matt Klein www.criterium-cincinnati.com (513) 474-9600
Pop-A-Lock | Wendell Turney www.popalock.com (513) 772-8644
Patron Sponsors: Apex Exterior Solutions | Zack Parsons (937) 242-2133
Terry Monnie Title Company | Terry Monnie www.terrymonnietitle.com (513) 794-2824
BildWise | Dan Poske www.bildwise.com (513) 301-0247
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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August 2016
REIAGC TO PRESENT GEORGE ANTONE AND THE WEALTHY CODE! REIAGC to Present George Antone and the Wealthy Code! REIAGC is all about bringing you the opportunities for education that you need to successfully advance your real estate investment business. On September 17 & 18, we will offer the opportunity to learn from one of the biggest names in real estate today. George Antone will bring his program entitled “The Wealthy Code” for an intense two-day training. This event helps students structure deals for maximum passive income with the least possible risk.
This training gives them all the above plus a lot more. They will walk away being able to structure deals for ANY income producing asset, including real estate, businesses and paper. They will have the tools to put deals together like the very best. Most importantly, they will have the confidence to do all that due to the teaching method – this is highly experiential learning. For example, on day 2, they are given deals (business, real estate and paper) and asked to structure the deal and present to the class.
In this session, George will start by letting students know there are 3 aspects to any deal: 1. The money side (other people’s money such as private money) 2. The asset side (where the money is placed such as real estate, businesses, paper, etc) 3. Structuring the deal (I’ll expand below)
The bold PROMISE of the training is this: By The End of This Training, You Will Be Structuring Deals For Passive Income Like The TOP 1% of All Investors In The World!
Most courses out there teach one of the top 2, where to place the money (#2 above) or how to raise the money (#1 above), but very few people, if any, teach how to structure the deal, and worse yet, most investors THINK they know how to structure the deal but very few really know. But this is where investors are dying! And structuring deals is the foundation of success for any investor.
To learn more about this learning opportunity, check the REIAGC Event Calendar for the link on September 17 & 18. The REIAGC member price of $397/$497 will never be cheaper than it is today and the pre-registration early special ends on August 15th. To register, visit www.CincinnatiREIA.com and select the Calendar of Events or you can call the office at (513) 407-3137. Don’t wait, register TODAY.
For example, how much debt versus equity should the investor have? Should they use HELOC for their down payment, or not? Why or why not? Should they structure the private money raised as debt or equity? What if their money source is Aunt Mary, should that be different than Uncle James? Should they use their own money, if they have it? How can they QUANTIFY and MEASURE risk on that deal structure? (i.e. give the risk an actual number – a measurement) How much return should they aim for? (the higher the better is the worst mistake) Or better yet, how can they have the CONFIDENCE that this is, indeed, a great deal? (good return and low risk, backed by real data, not “gut feeling”).
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REIAGC PRESENTS: SURVIVE INSTITUTE - A LEGACY TO BOBBY AND CRYSTAL Real estate can be a risky business, but not for the reasons that would come to mind first. Unfortunately, there is risk to our personal safety as well as for financial well-being. The REIAGC family recently suffered a tragic loss. Two of our members were murdered in the course of business. It is in memory of Bobby Jones and Crystal Warner (Florence, Kentucky), that we bring the Survive Institute to Cincinnati. This meeting, which will be held on August 18th from 6 PM to 9 PM at the Crowne Plaza in Blue Ash, will be an extra special event and is open to members as well as the general public. Debbie and Mike Gardner are two of the most respected experts in the world when it comes to teaching nice people self-defense that works. The audience leaves feeling empowered, excited, renewed and grateful for an experience that they will take home, remember and repeat to everyone they love. Their speaking engagements have reached audiences in both the private and public sector
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throughout the U.S., Canada, South America, New Zealand, Australia and Europe. The message isn’t just about effective moves to prevent, and if necessary survive, an assault. The Survive message translates into any area of life where a person needs strategies in self-control in a fearful situation (such as medical emergencies, crisis driving, public speaking, customer service conflicts and athletic performance). Through humor, tons of energy and inspiring storytelling, Debbie and Mike Gardner reach everyone in the audience on their journey through overcoming fear, no matter what it is. If you are in the landlording business, the real estate business in general, or just concerned about your personal safety, you can't afford to miss this event. REIAGC members can attend for free and non-members may attend for the nominal price of $25. The result of improved personal safety knowledge and emotional empowerment, in this time of anarchy, is absolutely priceless. Visit www.SurviveInstitute.com for more information on the Survive Institute and register your attendance at the event at www.CincinnatiREIA.com.
August 2016
LEADERSHIP LEADS TO PERSONAL GAINS? REALLY! If you ask someone what a trade association is, they may tell you that it is a group of like-minded people. If they are deep thinkers, they may even go so far as to say that a trade association brings you what you need to grow and successfully maintain your business. So, exactly how is it that an organization knows what you need to grow your business? They know, because the members of the group are all going through the lifecycle of learning about the industry that you are involved in. An example of this is you and the real estate investment industry. Everyone starts with their first deal and as you do more and more, you learn more and more. One method of learning is through the “school of hard knocks” or you can make it a lot easier by learning through REIAGC and its connections. REIAGC members know they can get the information they need by attending meetings and networking with folks who know more than they do. There is, however, a secret that we should share. That hidden truth is that one of the biggest and best learning experiences at REIAGC is to participate in leadership. It is through your interaction on teams and committees that some of the best learning happens. Let’s see what Jim Shapiro says about his leadership experience: “I have been a member of REIAGC since its beginning. I have learned so much from this group and its members. The truth is however, every time I participate in a leadership capacity, I learn even more. I share my knowledge, skills and abilities while I am working to help the group but even more, these interactions help me to make friends and learn from each of them. I wouldn’t trade this time for anything, it is that valuable to me.” – Jim Shapiro, Weybridge Properties, LLC
Anyone can be a leader in your association and REIAGC would love to have more of our focused and enthusiastic members to come forward and help themselves by helping others. We realize that you may not understand how to make this happen so there are two things that you need to know to get started. The first is to contact REIAGC about your interest. We can be reached at info@CincinnatiREIA.com or (513) 407-3137. The second, is to consider attending the upcoming OREIA Leadership Training session. Slated for August 20 & 21st, this session is for current AND aspiring leaders but you may get more than you think! The two-day OREIA event is focused on “How to Get Butts in Seats”. This topic is not only good for leading the organization but is an excellent way to understand the process of buying and selling. What investor wouldn’t want to know how to get more excitement in a deal or networking to get more buying, selling and partnering opportunities? This weekend will teach you how to move a prospect to adoption and on to a sale. We will learn how to improve critical thinking in areas such as government affairs and how to get your voice heard, all of which can directly translate into valuable information for your real estate business! The reality is, topics covered in this weekend are not only relevant for association leaders, they can be applied in other areas of your world and business. Best of all, it’s super affordable at just $39 for the weekend. To learn more about this event and how you can grow your involvement and business, visit the REIAGC Calendar of Events (August 20th) or the OREIA website at www.OREIA.com or call 888-9967342 to register.
John C. Wagner | 513.857.9179
The Investor
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LET NO ONE CONFUSE YOUR KINDNESS WITH WEAKNESS: UPDATED AND EXPLICIT FAMILY DEFENSE FOR REIAGC MEMBERS BY DEBBIE AND MIKE GARDNER
At the time of this writing, we only know the murderer of Bobby Jones and Crystal Warner has been arrested. The location of their body and other crime details are not yet known or released to the public. We can only imagine how much your hearts are completely broken—and scared you may feel. Oh my goodness! What happened? Could it happen to me? There were TWO of them and they knew their attacker! Is there anything—really—that I can learn to save my family and myself? As professional Courage Coaches and respected self-defense teachers, we promise you that we can greatly increase your odds to prevent and survive a horrible crime event. In this article (and in more depth at the event on August 18th) we will explain just a few of the very best and most effective self-defense principles—all rooted in explicit truth and the Power of L-ove! YES! The Power of L-ove! On August 18th bring a carload of family and friends for an evening of learning (… and laughter. We do not scare
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people!) We will change your life as you learn unforgettable power on 3 levels: 1. MENTAL POWER: Get control of the fear-based “war in your mind.” You know -- those negative thoughts that talk to you everyday, perpetuating self-doubt and self-sabotage. Let us convince you that only YOU can make a split second adjustment that activates the physiological changes needed to control your body inside your skin when ambushed or terrified. Learn the 3 exact choices that break the freeze of fear (body immobilization) and release adrenalin—a priceless chemical that activates when you are frightened. Scared people often say: “I know I will FREEZE! There is nothing I can do!” Wrong! Humans do not freeze! Ice cubes and margaritas … freeze! What most scared people do when frightened is DEEPLY HOLD THEIR BREATH - which strips their body’s muscular system of oxygenated blood causing immediate weak-
August 2016
ness and/or muscular collapse. It’s that collapse of oxygen that restricts an otherwise capable person of their ability to do simple things like run, kick, fight, think, put a key in a lock, dial 9-1-1 accurately, etc. During our Seminar we will offer specific advice for realistic practice that will force habit changes—like this #1 Homework Assignment. (Yes, there are others!) Every time you take a shower and the water is too hot or cold, you are being attacked—by water! The shock of the wrong temperature likely “takes your breath away!” Your old response was likely holding your breath and tap dancing around until you could move away—and the pain subsided. (It’s the same reaction when bacon grease pops on your hands or face!) Accidently you’ve programmed yourself to “freeze” (shut down) in pain, in an effort to be quiet (polite!) Starting now - when hot/cold water (or bacon) startles you, step back and “ROAR!” Imitate Serena Williams hitting a tennis ball with your roar! How many seconds did you stall? Work to shorten that next time! Deep, recovery belly-breathing is essential for immediate crisis control and muscular movement. Please practice this in an atmosphere of (family) fun. Yep, everybody is going to need to get used to those strange bellowing roars popping up—whenever! Smashed fingers. Dropped ice cream. Mega Million Lottery ticket WIN! ROAR! 2. VERBAL POWER: Learn to distinguish true vs false intuition and feelings about a possible threat by mastering the concept and manipulation of personal SPACE! Basically speaking there are only 4 criminal personalities, acting out 3 specific goals: they want your stuff, your body or your life. Using specific words and the “theatre of power” we’ll teach you how to be a step ahead of their actions rather than a step behind. As a realty-pro, you excel at communication! We’ll teach you a few clever tweaks for improved confidence when the atmosphere gets scary. Verbal Power is crime prevention and you’re already a natural! Because all crime is not preventable, we will teach you a one-sentence self-defense law that empowers you with legal certainly of exactly when to strike an unstoppable threat. 3. PHYSICAL POWER: Less is more, when less is right! When seconds count police are just minutes away—making you the “first responder” at your attack scene. After discussing your right to fight-right, we will dispel old self-defense myths that are likely ineffective if your attacker is enraged, drugged, or intoxicated. (Nope! We don’t teach: “kick the groin” or “poke the eyes”.)
ner in violence is the person who is breathing when the violence ends. Interrupting an attacker’s air supply causes him to choke, and gives a survivor the seconds needed to escape. A strike to the throat is a serious, possibly deadly choice that we know you understand is to be used only as a last resort. We look forward to convincing you that effective selfdefense is rooted in AIR! Who has it? Who doesn’t? Your height, strength, fitness, etc., are not the problem. Survival requires you to give yourself “permission” to strike first, legally. We recommend striking an attack’s THROAT (air) with your hand flattened out in a “L” position (we call that tactic: L-ove!). Or strike using anything in your hand, like the edge of your cell phone or the cap end of a water bottle! The best defense weapon is—whatever is in your hand the second you are attacked! If an attacker is armed, your fight to emotionally control yourself may be extra difficult. With stunning simplicity we will demonstrate ONE precise additional response to defend against a gun, knife and strangulation cord. You may need to injure your hands to save your life. This unforgettable single tactic added to strike the THROAT makes sense and is absolutely unforgettable! If an attacker is armed and you are not—the odds of survival will never be equal 50-50. The odds aren’t 100-0 either unless you have no air! Armed with the belief in our 3 word (summary) survival plan, we promise to increase your ability to survive violent crime at the increased odds of 51 (attacker) - 49 (you)! If 51-49 odds were available when buying lottery tickets, how many would you buy—rooted in the absolute belief you could win? Symbolically, that’s the mindset shift we all need to cope with the fear of crime. We need to see ourselves and our family members armed with updated, effective survival principles, then—winning! In these difficult times, with unthinkable crimes in the news every day, we beg you to understand this truth: Worry is NOT a safety plan. Let us help you transform your worry into oncommand Courage, fueled by the love of your family. You all will leave feeling empowered—we guarantee! Join REIAGC as we bring Mike and Debbie to Cincinnati for a Survive Institute training event. The date of the event is Thursday, August 18th beginning at 6 PM. This session will be held at the Crowne Plaza in Blue Ash at 5901 Pfeiffer Road. The session is free to REIAGC members but we are opening this life changing event to the public. The cost is just $25 per non-member and we encourage anyone and everyone who is concerned about safety, to attend. To register, call the REIAGC office at (513) 407-3137 or go online to our Calendar of Events at www.CincinnatiREIA.com.
We will teach you to “Strike the THROAT” because the winThe Investor
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YOU ONLY SEE WHAT YOU EXPECT TO SEE... BY VENA JONES-COX, REAL LIFE REAL ESTATE Do you ever get confused by how one self-proclaimed expert can swear up and down that the best, or even ONLY, way to do a certain strategy is to [fill in opinion here], while another guru, who seems just as successful and passionate, says that the truth is just the opposite? I did, too, back when I was just getting started and thought that there must be an exact right way to do any given thing in real estate. But, as it turns out, with wisdom and experience comes the realization that they’re all right, and all wrong. Because the TRUTH is, we often become convinced that certain things work and don’t work because we already believed that it would or wouldn’t work, and that becomes a limiting thought that actually predicts the outcome. In other words, the guy who swears up and down that his experience is that you MUST tell sellers that you can do ‘X’, or they won’t accept your offer is telling the absolute truth. HIS EXPERIENCE is that sellers won’t accept an offer without ‘X’ because he believes that they won’t, and thus they never do. Now I’m about as far from woo-woo as anyone you’re ever going to meet. I don’t believe that I manifest deals, or partners, or success into my life by vibrating in time with the universe. But I can prove this particular phenomenon with example after example after example. For instance, back in the days when I was first learning about wholesaling, I was taught something that never made sense to me: that I should assign my contract for a small deposit, then trust the buyer to go ahead and close (despite having little “skin in the game”) and to pay me when he did. I decided that this was silly: why should I give up 100% of the asset I had (the contract itself) for 10% of the money I was owed, and trust the buyer to pay me? Why should he pay me what he owed me, and trust ME to return the money should the seller be unable to deliver title? No other business does business like this, why should wholesalers? So, I immediately started charging my wholesale fees up front. And even though I was the only one doing it, very few buyers—as in, I can count the number on one hand, even after 20 years—balked at paying up front. And we’re talking about hundreds and hundreds of deals here. Yet, when I talk to my biggest local competitor about this, he invariably says, “I don’t know how you get buyers to do that. My buyers would NEVER do that.” Dude, we’re in the same market. We sell to the same buyers. You can’t “get” your buyers to do it because you believe that they won’t. You probably don’t believe it would be smart for them to do that. You probably believe that YOU would never do it. Therefore, if you ever tried to get your wholesale fee up front, your buyers would laugh in your face, because something about what you believe would telegraph to them, and they’d also think it was a bad idea. Similarly, an agent challenged me with this statement a few weeks ago: “No seller is going to let you tie up their property with no earnest money: they just won’t take you seriously”. 10
Interesting. Given literally hundreds have in just the past few years. I don’t think it’s a big deal, and therefore neither do they. I don’t mention it, and neither do they. But I bet this agent is going to find just the opposite to be true. Why? Because she believes that sellers should get earnest money, because if she were representing a seller she’d demand it, and because she’s so used to deal with other agents who believe the same that if she ever TRIED to get a contract without risking earnest money, her contempt for her own offer would drip off of her in big, invisible globs that the seller would sense and back away from. The week before last, I was talking to one of my partners, a 20+ year vet of the real estate business, about lease/options. I asked him what he was getting as an option fee on his typical property. His answer: “None of these people have any money. If I can get $2,000-$3,000 down on a $120,000 house, I’m lucky.” Then last week, I spoke to another investor in Cincinnati, and asked him the same question. He said, “I decided about 4 years ago that I was only going to work with good citizens with savings, and I get $5,000-$6,000 down, or I don’t sell.” And guess what: he does. So what’s the difference between my partner and this other
Building Value LLC 4040 Spring Grove Ave. CincinnaƟ, OH 45223 (513) 475-6783 www.buildingvalue-cincy.org
August 2016
guy? Simple: they get from the real estate market exactly what they expect to get. This isn’t the only time I’ve directly experienced this, either. In a single evening a few years back, I had one student say, “I’ve asked a lot of people, and no one wants to give me a private loan because I don’t have the track record”, then watched another student AT THE SAME MEETING ON THE SAME NIGHT raise $60,000 for her very first deal. I’ve sent hundreds of people out looking for deals in every market in the U.S., only to have a handful come back to me and say, “It doesn’t work here—every seller wants too much for their property, and no one will negotiate” while others in their market are buying deal after deal. I’ve seen students drop a wholesale deal because “No one wants to buy in that neighborhood, then watched someone else pick up the SAME deal and sell it for MORE than the frustrated wholesaler was asking, in a matter of days. It’s tempting to say that the folks who are getting the deals, getting the money, and getting the higher prices have “something” that the others don’t—maybe more experience, or a better way of presenting things, or whatever. But my experience after all these years watching people succeed and fail is that the people who get what they want get it because they’re pretty certain it’s out there, and those who don’t, don’t because they’re absolutely convinced that it’s not.
So if you’re not seeing what you want to see in the real estate market, how do you take your own blinders off? Easy— talk to the folks who ARE seeing (and getting) what you want, and ask how they’re getting it. Don’t do what you’ll be tempted to do, which is explain away their success by saying “Well, of COURSE he’s getting $6,000 up front—it’s tax refund season!” or “Sure, SHE’S able to put properties under contract ever week without a dime of earnest money—she’s the real estate goddess!”. Or, “This one says that X is impossible, and that one says he does it every day, and one of them MUST be lying.” Assume, instead, that people who are getting what you want are doing it because they have a mindset that says, “Yes, this will work” instead of, “No, no one in their right mind would do this thing with me” and go about trying to get that mindset. It takes a wise person to really internalize that, in most questions of technique and strategy, there’s no one “right” way— and until you do, you’re going to continue to be confused by how apparently successful practitioners can claim to be having great success with opposing opinions on how it’s done. Try, instead, to accept the fact that investors JUST LIKE YOU are getting just what you want to get—because they’re sure that with enough time and effort, they WILL get it. And so will you, when that’s what you expect.
Make More Money With Less Hassle Join Federle, Realtors and earn commissions up to 70%! Did you know you can complete your class requirements in about 3 weeks and it only costs $1,200 to become a Realtor? Many of our agents are real estate investors and can help you make more money whether your business desire is to buy and hold, fix and sell or to become a foreclosure specialist/REO Realtor.
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Become a new agent or transfer your business to Federle, a well-respected company specializing in residential, investment and foreclosure properties for over 40 years. 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
The Investor
Shea Lawrence 513-673-2972
s
www.federleinc.com
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OREIA GOVERNMENT RELATIONS BRIEFING BY DAN ACTON, LEGISLATIVE DIRECTOR, OREIA Summer is here and the Ohio Legislature is in their Summer break until after the election in November.
chapters and well over 10,000 properties around the state, our calls to those candidates will reinforce the fact that we will assist those that impact us in our business. Each group could fairly easily gather 100-200 sign locations. The campaign coordinators or local board members can then forward to me via email: ActonCompany@ aol.com.
They are expected to have a few housekeeping sessions in the interim. Most legislators are taking full advantage of the break for District issues, vacations, and of course, campaigning. The Ohio Real Estate Investors Association (OREIA) is asking for a campaign coordinator in each local group to assist in ways of helping those elected officials that have been supportive of the real estate industry. Some have taken heat from other groups for assisting us or voting for issues that have had a positive impact on OREIA. One way you and your local group can make a huge difference (and for FREE) is to gather addresses for sign locations that we as a group can offer candidates. With our many
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For this campaign, we will need: • Owner name • • •
Street address City Zip Code
Many campaigns are in full swing as we speak. Please forward the info to me as soon as possible. Statewide candidates will be recommended by our OREIA Legislative Committee Chaired by Jim Pirko. Candidates for
August 2016
councils, countywide seats and others can be vetted locally and I am glad to assist in helping narrow your selections. I want to stress that this is a non-partisan effort. We have friends in both political parties.
real estate investors. We are saddened by the city's stance to implement what is in reality a "Tenant Tax", since it is the tenants who will ultimately bear the brunt of this intrusive inspection and permit scheme.
For those with a passion for politics, please contact me directly if you would be willing to host a neighborhood coffee for a meet and greet or even a fundraiser. The "coffees" are a fantastic way of getting to know those men and women who can benefit us as a group. I'm happy to coordinate such events.
Lastly, please visit www.OREIAConvention.com to register for the nation's best real estate summit November 3 - 6. You will be amazed of the new strategies you will learn to grow your real estate business. I look forward to seeing you there!
LOCAL ISSUES: Toledo has taken a stance that would require all investors (and investors only) to have a lead based test performed on every 1-4 family rental unit. Early estimates on the inspection alone are $500 PER UNIT! After a test comes back as positive, you will be required to mitigate the problem. Mitigation costs can start at $15,000, again - per unit. Like they say on TV: "But wait, there's more", investors also have to pay for a permit to even own the property. We have prioritized this and have been working with Toledo REIA weekly to coordinate our efforts. West Carrollton is apparently willing to violate the recent federal court ruling prohibiting this landlord licensing scheme (won by our own OREIA partner Maurice Thompson of the 1851 Center for Constitutional Law). Greater Dayton REIA has done an amazing job of circling the wagons on behalf of
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
Ellsworth & Associates 513-272-8400
What you’ve always dreamed of, someone else who knows accounting and tax to handle it for you. The Investor
9624 Cincinnati Columbus Road Suite 209 West Chester, OH 45241
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HOW TO HARNESS YOUR FEAR OF REAL ESTATE NEGOTIATIONS TO GET THE DEAL DONE By Marcus Maloney, BiggerPockets.com
I have read, wrote, and discussed with many individuals the topic of wholesaling real estate. Many of the people that I talk with either have never heard of wholesaling real estate, they’ve heard of it but do not understand the usefulness of it, or they’ve heard about it and understand it, but have not taken action and facilitated a deal. Those of us who wholesale real estate all went through the dreaded psychology of the fear of failure, but what differentiates those of us who succeeded was we embraced the fear and did not let it cripple us. Before I go any further, I want to inform you that I’m not here to write about how to identify and overcome your fears. There are many articles you can read about fear and plenty of YouTube videos to get you motivated to take action. I would like to help you understand where you should have fear and how to channel that fear to get deals done. If you ask anyone just getting started, their greatest fear is talking with sellers. I know this to be true because it’s always the main topic of discussion when talking with a newbie. However, after you get comfortable talking with sellers, the real fear is making the offer. Yes, even as I think about it, I can feel my adrenaline rising. This is the rush, this is the point of no return, this is the point where you potentially have a deal — or your the seller thinks you’re a blood-sucking leech. The reason why this is so difficult is because after all the rapport building techniques you’ve utilized — i.e. having similar interests and the same favorite sports team — now you have to present an embarrassing offer that can destroy everything you’ve built. This is not always the case. Negotiating the deal is where you honestly learn if you can be successful at this business. THE ART OF NEGOTIATING Many people have the misperception that if “I” don’t get what “I” want, “I” lose. This is absolutely not the case and should not be the premise of the negotiation. Starting with “I” is when you lose. Always think of the needs of the seller, and reintroduce those needs back to the seller so they are on their mind. Never think of your needs first. Instead, remember you do have to make sure you negotiate a deal. Personally, the negotiation is the time I gauge my personal growth. Every seller will have an objection (if not, you better jump for joy), and it’s up to you to understand what the seller is objecting to. Do not assume the objection is always price — because it’s not. You need to find out what the true objection is. Negotiations begin in the initial conversation. You are listening for key indicators that you’ll be able to use in the future to help position yourself and the seller. Normally, if you give, you 14
will get. Before making your offer, take a moment to embrace the fear of making the offer. At the same time, be confident you’ve done concise analysis on the property. Then make the offer with confidence. Confidence is the key. A seller is able to gauge your confidence level and immediately object/reject your offer if you don’t communicate your position strongly. I use the method of maximum allowable offer (MAO) and minimum justifiable price (MJP). This is simple — what’s the most you can pay for the property and it still be a deal? Which is your worst case scenario (MAO), and what’s the lowest amount you can pay (MJP) that is beneficial to you and still beneficial for the seller? STRATEGIC POSITIONING When presenting a low offer, you may add a higher earnest money deposit, or you can have a higher offer with no/low earnest money deposit. This is just an example, so utilize every aspect of the transaction as a piece to negotiate with. As in the game of chess, you may need to sacrifice a pawn to gain the queen. Still, the end goal is to have all parties satisfied with the terms of the agreement. Many negotiators believe it’s all or nothing. This is the closedminded theory of a terrible negotiator. You have to remember, the deal is not done at closing. The deal should never be done — because your goal is referrals. To truly gauge if you have done a great job with the transaction, you’ll want to know both parties are willing to speak highly of the other afterwards. CONCLUSION Remember, the fear of making your initial offer is something you should embrace. Those emotions at that moment are your benchmark. Every negotiation going forward should become easier to navigate. You should be able to position the negotiations in a way that you are the facilitator, and the sellers are following your recommendations. Here are just a few things you need to know before negotiating: • Sellers personality type • Your personality type • Seller needs versus seller wants • Timeframes • How to handle objections Marcus Maloney G+ is the Executive Officer of 3rd Generation Management & Holding LLC, which is a family owned and operated real estate investment firm. The firm’s goal is to provide affordable solutions in real estate while providing exceptional opportunities for community redevelopment for the residents of Phoenix, Arizona. You can follow Marcus on Twitter
August 2016
Vendor Members Directory Type of Business
Company + WebSite
Accounting
Chuck Vonderhaar, CPA
Accounting
www.cpvpa.com
Ellsworth & Associates, CPA’s www.ellsworthcpa.com
Building Supplies
Butler County Edge-Co www.edgcowholesale.com
Contact Info
Type of Business
Company + WebSite
Contact Info
Chuck Vonderhaar 513-563-0598 chuck@cpvcpa.com
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
Scott & Deanna Ellsworth 513-272-8400 sellsworth@ellsworthcpa.com
www.firstcirclepm.com
Brent Fening 513-868-2068 edgcobp@yahoo.com
Rehab & Restoration
Cincinnati Home Improvement Co., LLC www.cincyhomeimprov.co
Rehab & Restoration
United Installs, LLC
www.peasewarehouse.com
Stephen Pease 513-867-9926 Stevep@peasewarehouse.com
Building Supplies
Surplus Warehouse
Brent McCleneer 513-245-2222
Rehab Project Mgmt
BildWise
Cleaning Products
OdorXit www.OdorXit.com
Cleaning and Evictions
Swept Away Property Cleanouts
Exterminator
Formula Exterminators
Building Supplies
Pease Warehouse
www.surplus-warehouse.com
www.sashaallen.vpweb.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
swcincinnaticlrn@ecbarton.com
Real Estate Brokerage
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
www.coregroupre.com
Real Estate Services
Exit My Foreclosure
Restoration
Icon Environmental
www.ExitMyForeclosure.com
Jiries Dawaher 513-504-5565 jtd8.re@gmail.com Kristin Caledine 513-509-9814 Kristin@ExitMyForeclosure.com Jeremy Clayton 513-396-6653
pstenger@springvalleybank.com
National Tenant Network
John Spafford 513-579-3520 john@ntnonline.com
David Caldwell 513-453-4006
Title
Servicelink
Wholesale Properties
You Buy Houses
Nancy Lawler 614-221-6770
www.fabulousfloorsusa.com
davidcaldwell@ fabulousfloorsusa.com
Olmec Reflections, INC.
Donald Boling 513-300-9203
www.mcswaincarpets.com
CORE Group
Bethanny Johnson 513-307-9349 bethanny@bethannyjohnson.com
Tenant Screening
Paula Stenger 513-761-6688
McSwain Pro Floors
www.homesbybethanny.co m
Christina Carey 513-509-2705 Christina@OTBrealestate.com
Kristen McClanahan 513-497-7990 kmcclanahan@adt.com
Spring Valley Bank
Flooring
Homes By Bethanny
Dennis Taylor 513-851-4021 dennist123@aol.com
ADT Security Services
Financial Services
www.olmeccarpetcleaninginc.com
www.OTBrealestate.com
Marty Russell 513-545-1637 martysrussell@gmail.com
Security
nlawler@recasafinancial.com
Floor Restoration
Real Estate Services
www.federleinc.com
Dan Poske 513-301-0247 dposke@cmsllc.com
clayton@IconEnvironmental.net
www.recasafinancial.com
Fabulous Floors of Cincinnati
Realtor
www.bestexit.com
Josh Appelman 859-916-5201 josh@united-installs.com
www.IconPropertyRescue.com
ReCasa Financial Group, LLC
Floor (wood) Restoration System
www.BildWise.com
Deb Meyer 513-266-4008 deb@odorxit.com
Financial Services
www.springvalleybank.com
www.united-installs.com
Christopher Penn 513-898-1878 cincinnatihomeimprovement@g mail.com
OlmecReflectionsinc@gmail.com
www.ntnonline.com
www.svclnk.com
www.youbuyhouses.com
John Wagner 513-857-9179 John.wagner@svclnk.com Drew White 513-471-5008 DrewWhitePix@gmail.com
Jon O'Connor 513-354-4400 joconnor@mcswaincarpets.c om
The Investor
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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!
Finance Series Join Us For A Special 2-Day Hands-On Workshop Where You’ll Learn:
A proven way to generate cash flow from any investment method. How to structure your real estate investments to minimize risk and maximize upside. How to quantify risk and return, and how to adjust both metrics to make deals work for you. What key mistakes to avoid in order to earn a consistent and dependable monthly income. How to live a dream lifestyle with less work, less stress, more money and more freedom!
Presented by the Real Estate Investors Association of Greater Cincinnati
SEPTEMBER 17 & 18, 2016 8AM – 7 PM DAILY CLARION CINCINNATI NORTH 3855 HAUCK RD., SHARONVILLE
Join REIAGC September 17 & 18 for this Two-Day Workshop for Real Estate Investors Learn To Structure Deals For Passive Income Like the Top 1% of Investors… Avoid Key Mistakes & Lower Your Risk!
Learn The Closely Guarded Strategies Of The Top 1% Of Passive Income Investors! Yes, there is a secret way to wealth. At this event you’ll discover what most will never know about creating passive income. This is your opportunity to gain the strategies, skills, resources, and tools for building passive monthly cash flow into your business. Follow this formula to create a fortress around your family’s financial future today… and for years to come!
Seating is VERY limited! Register Today!
Who is George Antone? This training is developed by: George Antone, author of the best-selling books The Wealthy Code and The Banker’s Code, is a financier, investor, and an entrepreneur. He is also the cofounder of the largest network of private money lenders in the world. He created MPactWealth to provide practical and proven wealth-building education for anyone anywhere. REGISTER EARLY FOR THE BEST PRICING!!! The pricing for this exciting educational opportunity includes two days of intense education, materials as well as lunch for both days. It doesn’t get any cheaper than now so DON’T WAIT! MAKE YOUR SELECTION: Register by August 15th REIAGC Member: Non-REIAGC Member:
___ One attendee $397 ___ One attendee $597
___ Two attendees $497 ___ Two attendees $697
Register by September 15th REIAGC Member: Non-REIAGC Member:
___ One attendee $497 ___ One attendee $697
___ Two attendees $597 ___ Two attendees $797
Register after September 15th (Seats are NOT guaranteed at the door AND you will not receive lunch) REIAGC Member: ___ One attendee $597 ___ Two attendees $697 Non-REIAGC Member: ___ One attendee $797 ___ Two attendees $897 Name: ______________________________________________________________________________ Address: _____________________________________________________________________________ City: ___________________________________________State: ________________Zip: ______________ Phone: ______________________________________Email: ____________________________________ 2nd Attendee: _________________________________________________________________________ NOTE: Please contact REIAGC staff with any accommodation or special dietary needs.
Check method of payment: ______Check
_____Credit Card Number: _________________________________________ Exp. Date: ____________
CID#____________
Signature: __________________________________________________________________ Please return completed form to REIAGC at the address below or register online at www.CincinnatiREIA.com. Cancellations are accepted without penalty up to 72 hours prior to the start of the event.
REIAGC 10945 Reed Hartman Hwy, Suite 113, Cincinnati, OH 45242 www.CincinnatREIA.com | Info@CincinnatiREIA.com | (513) 407-3137