We’re moving our networking one exit north on I-675 to TJ Chumps (1100 E Dayton Yellow Springs Rd, Fairborn, OH 45324) They have a private room that can accommodate our group, and they have the space for us to grow. As a bonus, they have audio-visual capabilities, so we can have a little more fun while we’re at it.
If you’d like to know what to expect at the event click here.
GET PAID TO SPEND MONEY
Yep – you read that correctly. We’ve partnered with Community
Money back in your pocket
Buying Group (CBG) to save you money with more than 20 real estate-oriented vendors. Save on materials, tool rentals, printing, office supplies, background checks, and more! Many of you have already signed up and are seeing the benefits.
Probably the best deal for most of you is the Lowe’s program – you save 5% on every purchase with an LAR (Lowe’s Accounts Receivable) account. The LAR is a charge account (not a credit card) that must be paid in full within 30 days. PLUS you get a 2% rebate when you pay your bill on time. You don’t have to be a part of this networking group to sign up, so you can get your contractors on board as well.
The best part? It’s FREE! If you haven’t signed up yet, now is the time. Sign up with CBG using this Direct Link. Do it now, before you forget like I would.
Everybody saves, everybody wins! Just another way we’re helping you to be more successful!
IN BETWEEN EVENTS?
We have a Facebook Group to communicate easily between networking meetings. Ask questions, get a phone number, post deals, and more. Follow the link and click “Join Group” when you get there, you’ll be approved shortly. Dayton Real Estate Investing Network on Facebook As always, this will be a spam free zone.
As several of you with tired legs know, we’re overflowing our private space at Logan’s. We love them dearly for their great service, but we simply don’t fit anymore. If you know of any place that has good food, drinks, and great service, where we can grow to around 100 people, please send your ideas to Christina@OTBrealestate.com. We will need a new place for the March meeting!
ONCE A MONTH, NOT ENOUGH?
We have a Facebook Group to enable everyone to communicate with one another more easily between networking meetings. Use it for questions, referrals, post your deals, and more (find leasing agents and note buyers … just sayin’). Right now, it’s a closed (private) group – to join, click Dayton Real Estate Investing on Facebook and you’ll be approved. As always, this will be a spam-free zone.
GET PAID TO SPEND MONEY …
Yeah – you read that correctly. We’ve partnered with Community Buying Group (CBG) to save you money with more than 20 real estate-oriented vendors. Save on materials, tool rentals, print services, office supplies, background checks, and more! Many of you have already signed up and are seeing the benefits.
Probably the best deal for most of you is the Lowe’s program – you save 5% on every purchase with an LAR (Lowe’s Accounts Receivable) account. The LAR is a charge account (not a credit card) that must be paid in full within 30 days. PLUS you get a 2% rebate on everything you spend, that’s paid out twice a year. You don’t have to be a part of this networking group to sign up, so you can get your contractors on board as well.
The best part? It’s FREE! If you haven’t signed up yet, now is the time. Sign up with CBG using this Direct Link. Do it now before you forget, like I would.
Everybody saves, everybody wins! Just another way we’re helping you to be more successful!
It’s been standing room only the last couple months, and this month will be no different, so we REALLY need you to RSVP this month. We may be expanding into the bar until we have a new space. Don’t miss out … Due to space limitations, you MUST RSVP to Darrin@MyHomesAndMore.com
Selling properties using a lease option is getting popular again. This a great exit strategy, and is very effective when used correctly with the RIGHT client. As with anything else, there are people who will abuse the strategy to take advantage of people who will never qualify to actually buy. Don’be be one of those people.
Personally, I’ve sold several properties on Lease Option. In every case but one, the buyer executed the option and bought the property. Several people I know have done a lot a lease options with varying degrees of success. Here’s what we have found.
There are two keys to making it work; the property must be priced right, and your must qualify the right buyer.
SET THE RIGHT LEASE OPTION PRICE
The deal must be fairly priced for the monthly payment, and the option price must be priced right for the purchase. If the deal is structured poorly, or it is financially unreasonable, it likely won’t go through. You shouldn’t set up a deal like that in the first place.
Just based on price ranges and without thoroughly qualifying the buyer, here is the trend we see.
Low priced houses are least likely to get to the sale.
Mid priced varies from low to high, based on selecting the right buyer. (more on that below)
High priced houses usually complete; if not, often it is by the buyers choice, not ability.
QUALIFY THE RIGHT BUYER
Someone who has never had good credit to buy a home, or never been a homeowner isn’t likely to finish. If they’ve been a tenant for years, they are likely to remain a tenant. Occasionally some will complete.
Someone who has had good credit in the past, and especially, was a previous homeowner, will very likely succeed, no matter what price range the house is in.
THE KEY TO SUCCESS
Your buyer must already be on the path to buying a home. This one element is your key to success. Yes, you can beg, cajole, push, and otherwise push some people to do the needed steps, but very few of these will finish. You want someone who is already taking the action needed, not just claiming they want to.
Of the people my friends and I have had succeed, many were people recovering from a temporary setback. (Divorce; Bankruptcy from business failure; previous loss of income with new income now, etc). Some could have bought then, but were waiting for personal reasons. A large majority were previous homeowners. Most importantly, almost all were already on the right path. They just needed the time to get there.
There you go, two items for a successful Lease Option.
Price it fairly.
Approve a buyer who is already on the right path to qualifying.
To the far north end of Dayton, this Dayton rental property is a great buy and hold in a stable, mature neighborhood. My favorite preference is still buy and hold forever, but this would be a great property to sell to a Lease Option tenant or on Land Contract for those of you who are looking for that exit strategy.
This Rental Property is 2 Bedrooms, 1 bath, 972sf, 9 foot ceilings, original woodwork and trim. Full basement could be finished for more living space. Walk up attic for storage. New Architectural shingles recently installed. 1 car garage, and a fenced yard
Some interior paint and shower surround are the top priority. To get the best rent, and the best tenant, you should update the electric and the furnace, however, what is there does work fine. The rest of the property is all in good condition.
Doing everything right, total repair total about $5,000. For a small fee, we can oversee the repairs for you.
Go to www.MyHomesAndMore.com to sign up for real estate deals, observations and (mis)adventures. Do it now. You can read the rest of this afterward. That’s www.MyHomesAndMore.com.
And wait, that’s not all, read below to find out about the free extras.(Billy Mays would be proud)
As many of you know, I’ve had an “email list” for some time. Unfortunately, I’d been trying to do it the hard way. Lists of email address in word, manually updating notes, trying to keep it right, and not get “spammed” off.
My first attempt with “Unnamed email list service provider” resulted in my account being cancelled the first day. I had uploaded the business cards from several networking events over 3 years. and sent them an email. 2000 people. 4 clicked spam, and account cancelled. $120 poof. Geesh, give a guy a break. 3 hours on the phone, no mercy. So that project got shelved for almost two years.
And we won’t even talk about how long it took to get those typed in. Ok, I admit it, I started typing them all in, then paid someone else to finish. Otherwise I’d still be typing.
So I went back to working from memory, and my short list. Unfortunately the short list only exists in my head, and consists of people who’ve bought properties, or I met recently. Not the best way to run a business. Not even a good way. But it worked, and hey, if it’s working, why change, right? wrong!
This past year, I decided to ramp up. And the system broke. Well, the lack of a system broke, and it tried to break me.
This was me. This was my business.
I felt like the old school stage performer trying to spin plates on a stick, running from one to another to keep each going and keep any of them from falling. So, I added another plate.
Sounds crazy I know. I started forcing myself to take time again to focus on running the business better. And that lead me to identify three items to get implemented.
A Property Manager
A CRM program to track leads.
A good email list service (which may be covered by the CRM later)
We’ll cover the property manager in another post, but I will say I have one and I’m gradually turning over all my properties. And I like it.
Next, I started looking at CRM, but found the many choices overwhelming. I’ve looked at many, and very few seemed to fit for a real estate business. I have finally narrowed it down to two. One will be implemented by the end of the year.
When the CRM frustrated me, I looked at the easier one, an email list service. Who knew two years would make so many changes. Multiple reputable providers, cool tools, great tracking. And the best part, getting started cost nothing! (My favorite price.)
I sent out my first email to the list today. Creating it was a piece of cake. Editing took longer, but that’s my fault, not theirs. Great tools, made it super simple. Now I’m asking you to make my life simple. Get on the list. Get great deals via email (email is free, deals are not. Usually). Get the occasional snarky post (always free), and some genuinely useful information (also free).
Go to www.MyHomesAndMore.com to sign up. Do it now. (Only if you didn’t follow the instructions the first time. You don’t need to do it twice.)
Tantalizing Teaser
Which email list service did I pick? If the curiosity is killing you, and you still haven’t signed up, the confirmation email will show you the email list provider I chose. Hey, they get a free advertisement at the bottom. I can work with that. And so can you.
PS.
If you click “manage your preference” on the confirmation, you can add some additional details on your interests.
Personally, I’m seeing more activity in 2014, than in 2013. There is more demand for lower priced homes as investors and homeowners are both buying properties.
I’m encountering more “multiple offer” situations, especially when the houses are priced right. There is still a lot of inventory, but now there’s competition for them.
Evaluate your Real Estate Deals correctly BEFORE you Buy
Wholesaling, Retailing, Landlording. Each of these Real Estate business specialties is different. However, there are some skills that apply to all three. Foremost and an absolute key to success is evaluating the real estate property and the deal. No matter what your primary real estate strategy is, you must answer these four questions correctly:
How much will the property be worth?
What repairs does the property need?
How much will the repairs cost?
How much should I pay for the property?
Evaluating each question and getting the right answers will help you succeed in your real estate investing.
First, determine your After Repaired Value (ARV). Getting accurate recent sales is critical. You MUST accurately assess the end value of your target property. Many investors think they know the value range for real estate in their target neighborhoods. However, the values do change. Checking recent sales gives you an accurate ARV of your target property now.
Second, evaluate the extent of repairs needed. Your final exit strategy will influence the type and quality of repairs you perform. A house inspection can give you the details you need and identify items you may have missed. The more evaluations you do, the better you will get. Having a solid list of what to do and not to do is critical to the next step.
Third, determine your repair budget. Again, practice and experience helps. Having contractors you can call for questions and bids will help you refine this to a final number. Do NOT underestimate here.
Fourth, taking all the numbers from steps 1-3, determine your Maximum Allowable Offer (MAO). Once you have this final number, do NOT pay more. If you get new information that changes previous numbers you can update it. But, do not fudge the numbers because you fall in love with the house, or you’re anxious to get a real estate deal done. Fudging the numbers rarely ends well.
Initially, you will evaluate a lot of properties to find a good deal. As you gain experience, you will get much faster at all four of these steps. Getting out and practicing will rapidly increase your confidence, and improve your skills. The best way to get experience is through practice and more practice. Accompany experienced people. Take bus tours. Talk to contractors. Talk to other investors.
Accurately evaluating your properties can truly make or break your Real Estate business. Get good at it.
When it comes to buying a bank-owned property, the Dayton, Ohio region is among the best in the nation. The Miami Valley ranks No. 2 for the best markets nationwide to buy a bank-owned home, according to a new report from RealtyTrac.
