Columbus Real Estate Investors Association Blog

NEXT WORKSHOP: Saturday February 6th 2010

2010-01-27T09:28:00.013-05:00

This month Columbus REIA will be conducting a one-day training workshop addressing:

"WHAT’s WORKING NOW: Get a FRESH Perspective on Your Business and Learn How Columbus REIA Members and the Local Pros are Tackling Today’s Biggest Real Estate Investing Challenges"

No theory. No Bull. This month we will be dissecting actual Central Ohio deals to help you see firsthand how local real estate investors are building wealth and generating fast cash in today's market.

This workshop will be held at Hondros College on Saturday, February 6th from 9:00AM until 2:30PM. Here's a quick look at the agenda:

8:00-8:45AM – Non-Member Orientation

Columbus REIA non-members can save $45 at the door and attend this workshop for FREE by attending the Columbus REIA non-member orientation starting at 8AM. In this orientation, guests can listen in as Columbus REIA, Executive Director, discusses "Why a Perfect Storm is Brewing in the Central Ohio Real Estate Market and How Columbus REIA Can Help You Capitalize on One of the Best buyers Markets of All-time". Non-members that do not attend this session will be charged a $45 workshop registration fee at the door.

9:00-2:30PM – General Session for All REIA Members

SESSION 1 - Columbus REIA, Executive Director, Steve Zehala: “REVEALED: How Local Real Estate Investors are Generating Fast Cash And Building Wealth in the Central Ohio Real Estate Market". Listen in as Steve Zehala interviews Columbus REIA members who have had recent success in the Central Ohio real estate market. Learn the secrets of how each deal was completed, where the lead came from, how the investor profited, lessons learned, and a whole lot more.

SESSION 2 - Columbus REIA, Executive Director, Dave Zehala: “Dirt Cheap Strategies to Generate Highly Targeted Leads Using Post Cards and Letters” Learn how to cost effectively implement and manage your real estate investing direct mail campaigns. Learn where to get your lists, where to get your postcards done, how to do letter campaigns and how to get FAST results.

SESSION 3 - REAL ESTATE INVESTING PANEL GROUP! We have assembled a local panel of experts that will take your questions, hold nothing back, and offer you solutions to your real estate problems. No question is a bad one, so now is your chance to FIRE AWAY!

SESSION 4 - John Hyre, Local attorney, CPA and Real Estate Investor. "How to Setup Your Real Estate Investing Business Entities and How to Use Real Estate to Legally and Ethically Avoid Paying Taxes."

3:00 – 4:30PM– Private Mastermind Session with Private Coaching Students

Columbus REIA, Executive Directors, Steve & Dave Zehala: Private coaching students are invited to attend an informal mastermind session over a few beers to discuss how to quickly implement the techniques discussed over the course of the day and brainstorm student deals.

To reserve your seat and register now please fill out the following form:

FREE Workshop: Saturday January 16th 2010

2010-01-02T14:23:00.019-05:00

"How to Invest in Real Estate Tax Free Using a Self Directed Roth IRA"

Presented by Edwin Kelly, Equity Trust

Columbus REIA is pleased to announce that Edwin Kelly, Director of Education Services of Equity Trust will be conducting a FREE workshop for blog subscribers and members on Saturday January 16th. Mr. Kelly is a graduate of Franklin University, where he received a Masters of Business Administration degree and a Bachelor of Science degree with an emphasis on finance, banking and business management.

The goal for this workshop is to show you how you can receive tax free passive income by purchasing real estate through your ROTH IRA retirement account so you can achieve financial freedom sooner rather than later.

That means: You are in control of your financial destiny. You can diversify out of stocks and bonds and into real estate. You can build wealth doing things you know how to do well. You can quit worrying about Social security not being around in the future. You can significantly decrease your tax burden.

In this meeting, Edwin will discuss:

Real Estate in IRAs - Learn the key benefits that self-directed IRAs have provided to real estate investors since 1974.
Types of IRA real estate investments - See what kinds of real estate investments you can make with a self-directed IRA.
Real estate IRA rules - Here are seven key points you must know about real estate IRAs.
Purchasing real estate in IRAs - Learn how to make a real estate investment in a self directed IRA?
Own rental real estate in your IRA - Learn how to manage income and expenses generated by real estate in a self directed IRA.
Real estate FAQs - Review the most frequently asked questions about self directed real estate IRAs.
Prohibited real estate IRA investments to avoid like the plague.
Three most popular ways to invest in real estate with a self-directed IRA.
Partnering to purchase real estate with an IRA and More.

NEXT MEETING Saturday December 5th, 2009

2009-11-26T08:24:00.008-05:00

FREE 1-Day Training Event for Columbus REIA Members WHAT’s WORKING NOW: Get a FRESH Perspective on Your Business and Learn How the Pros are Tackling Today’s Biggest Real Estate Investing Challenges. - Presented by Columbus REIA Faculty & Key Contributors OK, first the bad news. There will be no monthly meeting on the first Thursday of December this month. Now the good news. As an early Xmas present for our members, we have decided to give you a FREE One Day Training event instead! This event will be held at Hondros College on Saturday, December 5th from 8:30AM until 4:30PM. Active REIA members and one guest can attend for FREE. Based on room size, we are limiting this event to the first 135 members that pre-register. To pre-register and reserve your seat please fill out the form marked "Holiday Event Registration" on the right hand side of this website. Members will have pre-registration for the next 48 hours. After this date, we will be selling tickets to the general public. More details will be provided later but here’s a quick look at a few things we have in the works. 8:30-4:30PM – General Session for All REIA Members SESSION 1: Columbus REIA, Executive Director, Steve Zehala: “How and When to Use Lease-Options, RTO and Land Contracts in Your Business to Provide Reliable Cash Flow.” Learn powerful, proven and cash friendly exit strategies that can completely recession proof your business and provide you much needed sources of upfront and recurring cash flows. SESSION 2: Columbus REIA, Executive Director, Dave Zehala: “The Five Big Obstacles that Hold Most Investors Back From Getting Fast Results and How to Overcome Them.” Learn how to manage your real estate business, use systems to get predictable results, find the best owner finance deals, and sell or rent your inventory fast. SESSION 3: REAL ESTATE INVESTING PANEL GROUP! We have assembled a local panel of experts that will take your questions, hold nothing back, and offer you solutions to your real estate problems. No question is a bad one, so now is your chance to FIRE AWAY! SESSION 4: Rick Harrington, Ohio Association of Home Inspectors: Avoiding Real Estate Investing Landmines - Learn Why an Expert Home Inspector Says "Look Out" or "Buy This One Quick" Learn cash friendly ways to do your own inspections and the BIG things that can royally blow up the profits on your real estate deal. You may be surprised. SESSION 5: Mr. X. Real Estate Funding Expert. Looking for some creative ways to finance your deals? If so, Mr X will blow you away. Consider this another early Christmas present, but you will need to show up before his identity is revealed. HINT: Think money for deals that doesn’t involve using your own credit 4:30 – 5:30PM– Bonus Session for REIA Gold, Platinum, Short Sale Service and Private Coaching Students TOOLS AND TECHNIQUES, Steve Zehala. Systems, Techniques and Tools the Local Pros Use to Reliably Run Comps on Your Real Estate Deals. In this market, you CANNOT AFFORD to overpay on your deals. In this session, you will learn the step by step method Steve uses to assess a properties TRUE market value and help you prevent getting stung on a deal. 5:30 – 7:00PM– Private Mastermind Session with Private Coaching Students MASTERMIND: Columbus REIA, Executive Directors, Steve & Dave Zehala: Private coaching students are invited to attend an informal mastermind session over a few beers to discuss how to quickly implement the techniques discussed over the course of the day and brainstorm student deals.

Next Meeting: Patrick James, Tax Expert, on Thursday November 5th

2009-09-27T18:33:00.009-04:00

Attend the meeting for FREE ==> Look for Box that says "Get 2 FREE Tickets" on the right hand side of this website. "TAX THIS! An Insider Look at the IRS Which Will Save YOU $1000’s" Presented by Patrick James This month Columbus REIA’s keynote speaker will be Patrick James. Patrick is president and CEO of Tax Strategies and Solutions, Inc., and has dedicated his entire career to helping people create and preserve wealth through knowledge. Taxes are the single largest expense most families are faced with today. No matter what your tax bracket, you can discover thousands of dollars in additional deductions you didn’t even know the IRS allows. The average family of four saves an additional $7,900 per year on their taxes by understanding and implementing these strategies. You will learn how to legitimately deduct: Golf, Theater and movie tickets, Professional sports tickets, Mileage and other auto expenses, Clothing, Travel, including cruises, Christmas presents, Tuition for your children’s education, Home improvements, Computers, Meals, And much, much more! Patrick is a graduate of the University of Portland and as been a guest on more than 100 radio and television talk shows and was featured in Explanations and Newsweek, It's Your Money (a New York Times best-seller). He was also the recipient of the Business Man of the Year 2002. Attend the meeting for FREE ==> Look for Box that says "Get 2 FREE Tickets" on the right hand side of this website.

Columbus REIA Membership Appeciation Month - FREE Platinum Training

2009-07-19T11:50:00.004-04:00

ATTENTION: FOR ACTIVE COLUMBUS REIA MEMBERS ONLY As part of the Columbus Real Estate Investors Association Member Appreciation Month you are cordially invited to attend any of the Platinum classes we offering this week for FREE If you are a Gold or Silver member this is your chance to see what you are missing and check out the types of hands-on information and killer strategies that are offered by our local faculty members. If you are a Platinum member already, this is your chance to check out our new instructors to get a feel for the class that's the best fit for you. All classes will be held this week at our Columbus REIA offices located at 2525 E. Main Street in Bexley Ohio 43209. Here's what's on tap this week. Foreclosures - Tuesday, July 21st at 7PM, Randy & Helen Conway "Insider Secrets and strategies to generating BIG PROFITS in one of the best foreclosure investing markets of all-time" Landlording / Lease Options - Thursday, July 23rd at 8PM, Chris Knoppe “How to find & screen quality Lease/Option buyers while collecting maximum non-refundable down payments.” Getting Results - Saturday, July 25th at 9AM, Steve Zehala "The number one, NO RISK, simple, anyone can do it, easy method to do deals that NO ONE uses or knows about that will allow you to make thousands with No Credit and No Competition" PLEASE REGISTER BELOW:

Contact Information

First Name *

Email *

Miscellaneous

Check all that apply:

Foreclosure Class (Tuesday July 21)
Lease Option/Landlording Class (Thursday July 23)
Getting Results Class (Saturday July 25)

Platinum Member Testimonial Form

2009-05-11T12:40:00.011-04:00

Attention Columbus REIA Platinum members: Please use the link below to submit your testimonial for the Columbus REIA Recesssion Buster event: TESTIMONIAL LINK ++++> CLICK HERE For general info regarding this link please see the video on this page or visit: Recession Buster Event

Columbus REIA Meeting Open to Public May 7th

2009-04-01T12:32:00.014-04:00

How the Local Pros are Tackling Some of Today's Biggest Real Estate Challenges. This Meeting is FREE! Save $25 and bring as many people as you like! ====> Simply pre-register by clicking on the link on this blog that says "2 FREE Tickets" The Columbus Real Estate Investors meeting will be held on Thursday May 7th, and this month we will not be charging the customary $25 guest fee! This means you can attend this meeting for FREE. and bring as many friends with you as you like to check out the killer real estate info you can get as being part of the association. This month we will be conducting "Ask the Expert Roundtables". Quite frankly, this is our most popular meeting format because it gives you the chance to sit down with local pros and learn how they are tackling some of today's biggest real estate challenges. That also means that we have assembled some of the top real estate professionals in Central Ohio, and they have all graciously agreed to make themselves available to you next Thursday night in order to provide answers to whatever pressing real estate questions you might have. Here's how it works: Each expert will be manning a large roundtable setup in the main ballroom. Each table can accommodate 10-12 people at a time keeping the workgroups small and less intimidating. Members and guests are encouraged to move around the tables to listen in, ask questions, learn and expand your knowledge bases. ====> This month there is no guest fee! Simply pre-register by clicking on the link on this blog that says "2 FREE Tickets" Here's a sample of a few of the experts expected to attend this meeting: Creative Owner Financing Techniques - Steve Zehala, Columbus REIA Executive Director: Creative financing techniques that will allow you to do your first deal without using your own credit, your bank or own personal funds. Real Estate Investing Marketing - Dave Zehala, Columbus REIA Executive Director: Real estate investing insider secrets to help you grab the best deals in town and find qualified buyers so you can sell, rent, or lease-option your properties fast. Foreclosures - Randy, Helen and Ryan Conway Solutions for Homeowners: The fast and easy foreclosure method that no one else in Columbus is teaching that will save you 75% of your time on every deal Wholesaling - Rob Fill, Apobetic Business Systems: How to generate fast cash in a slow market, reduce your financial risks, and negotiate more cash on every wholesale deal HUD Homes & Landlording - Dave Peters, KJB Properties: How to build wealth and become a wildly successful buying HUD homes and rentals in one of the best buy and hold markets of all-time Real Estate Law - Myriam Gluck, The Gluck Law Offices. Do you need some legal guidance in a few areas? If so attend this Q&A session and get some answers to your questions. Getting Started- Ed Wachsman - Sweet Tree Investments: Real estate investing demystified and how to overcome the obstacles that are preventing you from seeing fast results Property Inspections 101 - Rick Harrington, Patch Independent Home Inspections: Avoiding Landmines - Learn Why an Expert Home Inspector Says "Look Out" or "Buy This One Quick" Real Estate Technology, Systems & Tools - Scott Lazur, Columbus REIA Contributor: How to use technology, automated systems and commercially available tools to stop working "in" the business spend more time profitably growing your business. Rehabs & Renovation- John Longest, CompthatHouse.com: Battle tested rehab secrets that can save you countless hours and thousands of dollars of potential profits. ====> This month there is no guest fee! Simply pre-register by clicking on the link on this blog that says "2 FREE Tickets"

Next Meeting: Robyn Thompson Thursday April 2nd

2009-03-30T10:42:00.003-04:00

"How to Renovate Distressed Properties at Lightning Speed, Minimize Holding Costs, Expedite Closings and Collect Big Checks" Presented by Robyn Thompson, Thursday Night April 2nd Most people would agree that we are in the midst of one of the best buyers markets of all time, which is great, but here's part of the rub. A lot of the properties that investors are buying at deep discounts right now require some work, and let's face it, rarely are you going to get your hands on an REO, short sale, HUD home or other distressed property that's in perfect shape. This means that you are going to need to know how to do "light rehabs" on these properties if your goal is to get them tenant or lease option ready in a reasonable amount of time and under budget. This also means you are going to need to get comfortable implementing a light rehab system that guides you every step of the way so you don't go overboard on these projects, especially on a rental. This includes finding and managing your contractors. Selecting the right materials. Renovating for maximum profits. And the list goes on and on. This is such an important and relevant topic in this market that the Columbus Real Estate Investors Association has asked Robyn Thompson, one the nation’s leading experts on buying, renovating and selling homes to speak at our next monthly meeting on Thursday night, April 2nd at the Makoy Center in Hilliard, Ohio. This month, Robyn will be discussing: "How to Renovate Distressed Properties at Lightning Speed, Minimize Holding Costs, Expedite Closings and Collect Big Checks" For those of you that do not know Robyn, you are all in for a special treat. Robyn is known throughout the United States and Canada as "The Queen of Rehabs", and over the past 11 years since Robyn left her corporate job at IBM, she has bought, fixed and sold 260 homes with price ranges as low as $8,000 to as high as $4,000,000. She has spent as much as $2,100,000 in labor and materials in one year to renovate properties with more than 22 contractors working full time to take the ugly homes she bought and turn them into little castles at lightning speed. Robyn has taught thousands of students throughout the United States how to become financially independent. She has shared the stage with Donald Trump, Dr Phil, Mark Victor Hansen, Ron LeGrand, Marshall Sylver & many more legends. And in our meeting on Thursday, April 2nd, Robyn will teach you: * How to find the profitable homes that need renovated * How to find and control the contractors to get the job done * Selling houses quickly for huge chunks of cash. * 10 Criteria to Ensure High Profit and Low Risk Deals * Marketing and Sales Methods to Attract “A” Credit Buyers * How to Handle & Negotiate Purchase and Sales Offers * Rehab Timeline & Guidelines Strategies and Secrets * Step by Step Rehabs: Week One, Week Two, Week Three * Income and Debt Calculations for Managing Project Profitability * Killer Options When a Buyer Just Can’t Afford a House To attend this meeting for F>.re.e please click on the link on this BLOG that says "Get 2 Free Tickets" Best regards, Columbus REIA Staff PS: This meeting is being hosted by the Columbus Real Estate Investors' Association (REIA). For more information about becoming a member please visit our website at http://www.columbusreia.com and click on the Join Now button. PPS: Our meetings are held at the Makoy Center located at 5462 Center Street, OH 43026. For directions please click here ==> http://www.makoy.com/map.html. Doors open at 5:00PM. The Keynote speakers start at 7:30PM.

REO Training Info for Saturday March 14th

2009-03-13T13:03:00.002-04:00

Just a reminder that the Columbus Real Estate Investors Association will be sponsoring a special one-day workshop with REO and lease-option expert Andy Heller. The event will be held this Saturday, March 14th at Hondros College in Westerville. Andy's topic will be: "Building Wealth and Generating Fast Cash in Today's Market with Bank-Owned Foreclosures and R.E.O's" Here's a few meeting details (see Special Bonuses below): Register ===> ANDY HELLER REGISTRATION 8:00-9:00AM Special Session for Real Estate Agents/Brokers In this session, Andy Heller will be walking agents through the Lease-Option strategy he uses with home sellers that was recently voted a Top 5 Money Making strategy by Fortune Magazine. Are you frustrated with clients that throw in the towel at the end of your listing agreements with nothing to show for it. If so you will not want to miss this special session. At the end of most listing agreements, while most agents are moving on to the next client, Andy will be teaching you some powerful lease option strategies that can turn this listing from a dud into a deal, and still earn you a commission. As part of this training, Andy will be focusing on how to present these deals to sellers. How to structure these agreements. And will also be discussing the tools he uses that does most of the selling for him. A must see if you are an agent looking for a competitive edge. Register ===> ANDY HELLER REGISTRATION 9:00AM-5:00PM General Session for all real estate professionals Bank owned properties represent 40% of all the inventory in the marketplace and continues to represent significant deal opportunity for investor buyers. In this session, Andy will be teaching you how to capitalize on these growing trends and negotiate smoking deals directly with local banks. Here's a sample of a few of the things Andy will be covering: * Why Fortune Magazine recommended the Investing in Bank Owned Real Estate program * Why today's COOLING market is a RED HOT opportunity for investors * Buying Low: Learn about the untapped fortunes with bank-owned real estate * Why especially today bank owned properties offer investors of all means unlimited deals * Why the right time to be buying REO's is right now. * Why bank-owned properties may be the best SOURCE for investors who have limited cash and/or credit * How to calculate the EXACT price you need to buy properties at in order to maximize your profits * What types of properties can you buy from banks Register ===> ANDY HELLER REGISTRATION The cost for this one-day workshop will be $67 (including one guest) for non-REIA members, $47 (including one guest) for Silver REIA members, and $27 (including one guest) for Gold/Platinum members. Plus, as a special Bonus for the first 75 people that register for this event you will receive(after the first 75 , we will shut down the bonus items): Bonus 1: Andy's price calculator worksheet for figuring out the true profit and loss on all of his deals. This is the go-to form he uses to negotiate with sellers. Bonus 2: Andy's script for negotiating and talking with bankers regarding the purchase or listing of bank-owned properties even when they say NO. This is a crutch that will guide you every step of the way. IMPT: If you have already pre-registered for this event you will automatically receive these bonuses. To register now for this special one-day training event please visit: Register ===> ANDY HELLER REGISTRATION Best Regards, Columbus REIA Staff PS: Here's the location of the meeting: Hondros College, 4140 Executive Parkway, Westerville, OH 43081 PPS: To register now for this special one-day training event please visit: Register ===> ANDY HELLER REGISTRATION

The Most Important REIA Meeting of the Year

2009-03-02T08:51:00.004-05:00

To register you and a guest for FREE please fill out the box on the right hand side of this website where it says "GET TWO FREE TICKETS". Free tickets will only apply if this is your FIRST MEETING this year, otherwise our standard guest fee of $25 will apply at the door. ********************************* AGENDA FOR COLUMBUS REIA MEETING TONIGHT DATE: Thursday, March 5th, 2009 LOCATION: Makoy Center, 5462 Center Street, Hilliard, OH 43026-1068 KEYNOTE SESSION: "How to Get an Unlimited Supply of Private Money to Fuel Your Residential and Commercial Real Estate Investing Business" - Presented by Alan Cowgill OTHER ACTIVITIES: 5:00-7:30 PM: HAPPY HOUR & MEET & GREET Come early, unwind, network and meet other Central Ohio real estate investors. Cash Bar. NEW! KIYOSAKI CASH FLOW GAME Learn fundamental cash flow concepts and what it takes to achieve financial freedom. 6:30-7:15PM SPECIAL PRESENTATION FOR GUESTS Learn why a Perfect Storm is brewing in the Central Ohio real estate market and how REIA can help you capitalize on these opportunities NOW! BRAIN PICK A REAL ESTATE INVESTING PRO (Members Only) Need help with a real estate investing problem? If so, get your questions answered by a local pro. BUY-SELL-TRADE (Members Only) Central Ohio's largest forum to market your properties to other investors in person and sell your investments fast. 7:30-9:00PM "How to Get an Unlimited Supply of Private Money to Fuel Your Residential and Commercial Real Estate Investing Business" - Presented by Alan Cowgill 9:00 - 10:00PM NEW! CLOSED-DOOR TRAINING EXCLUSIVELY FOR GOLD AND PLATINUM MEMBERS FAST TRACK How to Profit by Using Hard Money in Your Business! - Chris Knoppe DIRECTIONS: For directions to the Makoy Center please click http://www.makoy.com/map.html TOPIC ITEMS FOR TONIGHT * How to buy dirt-cheap properties like there's no tomorrow. Never lose a deal to someone with "all cash" because you can't finance the deal fast enough. * How to always have cash to close the deal. Make every offer with confidence. * How to never take a dime out of your pocket. You always get 100% financing, plus the money you need for renovations. * How to collect part of your future profit the day you buy a property. * How to borrow with no monthly payments. After all, you're the one who defines the loan terms. So you entice lenders to let interest accrue until you sell the property. * How to wield your "all cash" position to negotiate rock bottom prices on the properties you buy. * How to make sure Money is always waiting for you. The moment you sell one property, your next loan is sitting there, waiting for you to buy another. ********************************************************* To register you and a guest for FREE please fill out the box on the right hand side of this website where it says "GET TWO FREE TICKETS". Free tickets will only apply if this is your FIRST MEETING this year, otherwise our standard guest fee of $25 will apply at the door.

Next Meeting: Alan Cowgill Thursday, March 5th

2009-03-02T08:44:00.003-05:00

"Could You Use An Unlimited Supply Of Money To Do All The Residential And Commercial Deals You Can Find?"

Presented by Alan Cowgill

Most highly successful real estate investors would agree that getting money to do real estate deals has nothing to do with going to a bank, filling out an application, putting up down payments or waiting to be approved.

Smart investors won't go near banks that want to control their lives and tell them what they can or can't qualify to borrow. Forget the banks! Work with private lenders instead! Private lenders are everyday people that have money to invest, and in most cases, have recently taken a beating in the stock market losing upwards of 30%, 40%, 50% or more of their hard earned savings.

More importantly, these people are fed up with the Wall Street roller coaster ride and are quickly turning to real estate to take advantage of what is shaping up to be the BEST BUYERS MARKET OF ALL-TIME.

And this is exactly why we have invited America’s #1 authority on attracting private money, Alan Cowgill, to speak at our next meeting.

Alan has been featured in "Walking With The Wise Real Estate Investor", and a national speaker on various private lending topics such as "Finding Private Lenders" and "Private Lending Made Easy". Alan is also an ‘in the trenches’ real estate investor that has bought and sold over 200 properties and has done so by using private lenders NOT BANKS to fund his real estate purchases.

By doing this, he has created his own private bank of $2,000,000 in funds and at our next meeting will be discussing how to:

-Buy dirt-cheap properties like there’s no tomorrow. Never lose a deal to someone with "all cash" because you can’t finance the deal fast enough.

-Always have cash to close the deal. Make every offer with confidence.

-Never take a dime out of your pocket. You always get 100% financing, plus the money you need for renovations.

-Collect part of your future profit the day you buy a property.

-Borrow with no monthly payments. After all, you’re the one who defines the loan terms. So you entice lenders to let interest accrue until you sell the property.

-Wield your “all cash” position to negotiate rock bottom prices on the properties you buy.

-Make sure Money is always waiting for you. The moment you sell one property, your next loan is sitting there, waiting for you to buy another.

To register for free tickets to this event please fill out your information located to the right that says "Get 2 Free Tickets NOW' Please note that you and a guest can attend your first meeting for FREE. After that, you will be charged a $25 guest fee at the door.

Why REO Investing? Check out Video Below regarding Meeting Details

2009-02-03T14:36:00.006-05:00

Not a member? Want to attend your first meeting for FREE? No problem. Simply fill out the box to the right where it says 2 FREE Tickets.

Building Wealth and Generating Fast Cash in Today’s Market with Bank-Owned Foreclosures and R.E.O’s

2009-02-03T14:09:00.006-05:00

Building Wealth by Investing REO Real Estate by Andy Heller

Thursday night, February 5th, 2009, 7:30PM

Look for the Box that says 2 FREE Tickets ++++++++++++++++++>

There are literally hundreds of wealth-building strategies available for real estate investors. Some will make you money. Others are too much work for the money. So where do you turn? This month, we’ll be taking a cue from the top wealth building publication in the country, Fortune Magazine.

Recently, Fortune Magazine evaluated hundreds of the top wealth building formulas in the country and here’s what they found: Andy Heller’s real estate investing strategy entitled “Investing in Bank Owned Real Estate” was among the top 5 on their list. A huge accomplishment for self proclaimed “Regular Guy”

Andy and his story will inspire and connect with you, as it is a “regular guy” get rich story. Like so many of us, Andy started investing part time, pulling aside a few hours each week for his hobby. The lack of success of Andy and his partner Scott’s “buy and flip” plans led them by accident to a goldmine of investing in bank owned properties and REO’s.

When Andy and Scott found buying properties from distressed sellers to be tedious, hard work, and depressing they discovered by accident a hidden gem in the foreclosure process…BANK OWNED REAL ESTATE. With bank-owned real estate an investor is able to purchase MULTIPLE PROPERTIES from single sources, without emotions, and with clean and clear title.

Once purchased, when Andy and Scott were then unable to flip their first home after 9 months on the market, they modified the typical lease/purchase deal to come up with their unique rent smart and sell high formula. Their SHORTEST lease is 3 years, and each of their tenants (gladly) accepts responsibility for repairs and maintenance. High turnover, nightmare tenants, and lengthy vacancies are non-issues when you “rent smart”.

How profitable is their formula? The last home Andy and Scott sold required about 20 hours of effort, and netted a profit of $57,400. That is $2870/hour. But don’t leave your day job just yet. Come hear Andy speak and he will cover:

-Why Fortune Magazine recommended the Investing in Bank Owned Real Estate program

-Why today’s COOLING market is a RED HOT opportunity for investors

-Buying Low: Learn about the untapped fortunes with bank-owned real estate

-Why especially today bank owned properties offer investors of all means unlimited deals

-WHY ESPECIALLY TODAY AN INVESTOR CAN MAKE ENOURMOUS PROFITS BUYING BANK-OWNED FORECLOSURES!!!

-Why bank-owned properties may be the best SOURCE for investors who have limited cash and/or credit

-How to calculate the EXACT price you need to buy properties at in order to maximize your profits

-What types of properties can you buy from banks

Look for the Box that says 2 FREE Tickets ++++++++++++++++++>

Next Meeting: Wednesday, January 5th

2008-12-29T11:12:00.003-05:00

"How to Invest in Real Estate with Lease Options: Powerful Strategies for Getting More When You Sell and Paying Less When You Buy" Presented by Wendy Patton, 7:30PM-9:00PM This month Columbus REIA is pleased to announce that our keynote speaker at our next monthly meeting will be Wendy Patton. Wendy is widely recognized as one of the leading experts on using lease-options in your real estate investing business and is also the author of two bestselling books entitled “Investing in Real Estate With Lease Options and "Subject-To" Deals” and “Making Hard Cash in a Soft Real Estate Market” Wendy is also a licensed real estate broker, a licensed home builder, the past President of the Oakland REIA, and was recently profiled on the HGTV “My House is Worth What?” hit cable TV show. Wendy is experienced in land development, property management, rehabs, and foreclosures but lease options are by far her favorite topic. And with over 20 years of real estate experience, and hundreds of transactions under her belt, she is the country’s leading expert on lease options and working with Realtors to acquire lease option deals. Here’s a few things Wendy will be covering in this meeting: • Why sellers would accept lease option terms, what kind of sellers will accept them, and how to secure them legal contracts designed to help protect YOU! • Learn tested and proven methods, which will attract lease-option buyers and sellers to you like a scrap yard magnet. • Learn how to negotiate lease-option terms that will positively impact your financial bottom lines. • How to price your home for a tenant buyer and understand the forms used to sell on a lease option • How to structure a creative deal with the buyer when needed. • What to say to a tenant buyer that makes your home more desirable over other homes. • How to get your buyer to the closing table so you can spend your profit! • Learn how to price your home so you create the maximum profit. • Know what to say to buyers so they pick your house over the competition. • Understand how to screen a buyer and determine your profitability. To register for this meeting and attend for FREE please fill out the ticket request on the right hand side of this website and you will be put on our VIP list. This will save you a $25 guest fee at the door.

Why Soft Markets are GREAT Markets - Wendy Patton

2008-12-22T11:07:00.002-05:00

See Wendy speak live at the next Columbus REIA meeting on Wednesday, January 7th. Please visit http://www.columbusreia.com for more details. Why Soft Markets are GREAT Markets by Wendy Patton Investing in real estate has changed in many markets in our country. If you are like me, you live in a real estate market that has gone soft. There are still some areas in the country where homes are appreciating nicely, but nothing like it was just a year or two ago. There were a lot of self-proclaimed real estate gurus that popped up during the boom times telling you how to make HUGE PROFITS in real estate. Back then, during the up cycle, investing in real estate was so easy. You could throw money at almost any piece of real estate and be practically guaranteed to make a profit. It seemed like anyone who had flipped a couple of houses and made a profit was an “expert” investor. Times are different now. Investing in real estate takes a little more effort. Investors that haven’t weathered down cycles before are struggling because all they know are massively appreciating markets. All too many of those self-proclaimed gurus lost their shirts when the markets changed. Those ads that go “I made $256 Million in real estate in 4 weeks with no money down” are a whole lot less believable. Okay, $256 Million is an exaggeration, but you know what I mean. So the question is, “How do we still go about investing in real estate and make profits?” Can it be done in these soft markets? The answer to that question is quite simple. I can say without question, without hesitation, the answer is: YES! ABSOLUTELY! I have been investing in real estate for more than 20 years. I have seen up cycles and I have seen down cycles. I have made money and been successful in both. I can tell you several things about down markets that may surprise you. First, experienced real estate investors will tell you that more money is made in down markets than in up markets. It’s true, MORE MONEY is made in DOWN markets than in up markets! Second, experienced investors PREFER to do the bulk of their investing in DOWN markets. There are a number of reasons for this but the big ones are that there are more motivated sellers in down markets and the competition (other investors) pursuing these motivated sellers is LOWER. It’s a double bonus. Down markets produce more deals and less competition to get those deals. One of the investing techniques I specialize in is Lease Options. Lease Options are one of the absolute best techniques for investing in real estate in down markets. I’ll say it again, because if you are looking for ways to get involved with real estate investing you need to know this, Lease Options are one of the absolute best techniques for investing in real estate in down markets. Let’s take a look at why. I’ve already said that down markets produce high numbers of motivated sellers. Right now in Michigan, it’s very common to see a house listed on the market in two ways, both for sale and for rent. They are listed this way because the sellers KNOW how bad it is and they want someone, anyone, to cover their mortgage payment. These double listings SCREAM “Motivated Seller!” Now, not every single one of these is going to be an excellent Lease Option deal. But you know what? That’s okay, there are plenty to choose from! The critical part in selecting your Lease Option candidates, in an up market or a down market, is creating WIN-WIN-WIN situations. The seller must be satisfied with the deal, you must be satisfied and the end buyer must be satisfied. When investing in real estate, this is what makes us successful. How does this work? To create a WIN for someone we must meet their core need. A motivated seller’s goal is to sell their house. Eventually they need their mortgage paid off and the deed transferred out of their name. If they are willing to rent the house as well as sell it, they are telling you that having their mortgage paid each month is more important right now than actually getting the house sold. If we can find a tenant buyer for them we are satisfying their core need of paying the mortgage each month and eventually selling the home. This is a WIN for the seller. Our end buyer is looking for a home to own. Their current situation prevents them from getting a mortgage immediately but they plan on being able to get a mortgage soon. They want a home now. They don’t want to wait to get their house. By allowing them to lease and then purchase the house we are meeting their core need. This gives our buyer a WIN. Before we talk about what makes a WIN for us as an investor let’s talk a little more about mortgages for our end buyer. There has been a lot of news lately about sub-prime lending woes and how lenders with riskier loans are facing high rates of foreclosure and may be going bankrupt. As a result it is getting much harder for people with poor credit to obtain a mortgage. It is also getting harder for ANYONE to obtain a mortgage with 100% financing (i.e. no money out of the buyer’s pocket). This may sound crazy, but this is actually a good thing for us when investing in real estate. When investing in real estate by doing Lease Options it is harder for us to find quality tenant buyers when almost anyone who can fog a mirror can get a mortgage. Not only that but because it was so easy to get 100% financing most buyers save nothing and are unable or unwilling to pay much for an option fee. With the lending companies tightening their belts I expect we will see a growing population of QUALITY tenant buyers who are able to pay HIGHER option fees. The flip side of this is that because lenders are tightening their belts your tenant buyers will need to work harder to restore their credit. It may take as much as 2 to 3 years for some tenant buyers to be able to qualify for mortgages instead of just 1 year as we had seen before. The bottom line is when investing in real estate by using Lease Options the difficulties of the mortgage lenders are just another reason why this down market is a GREAT time for us investors. Now let’s look at the last part of our WIN-WIN-WIN equation -- the WIN for us, the investor. For us to WIN we need to make a profit. The profit comes both from the equity spread between your option price to the seller and the buyer’s option price to you as well as any monthly cash flow in the rental payments. With Lease Options it pays to be creative. You’ll find a lot more deals and be a lot more successful investing in real estate if you practice creativity in your structuring. The most common motivated seller we encounter is the one who has little to no equity in his home. Too many sellers get calls from real estate investors that only care about “What’s it worth?” and “What do you owe?” If the numbers are too close together, they say, “Sorry I can’t help you.” Click. What if you pursue it a little further with a creative mind? A good question to always ask is “What are your monthly payments?” If the payments are lower than rental rates you may be able to make some monthly cash flow. Another good question to ask is, “How soon do you need to sell the house?” You may want to ask this question a couple of times while you are talking to them. You could be surprised to find that the number grows longer each time you ask. There aren’t too many markets I can think of that stay down forever. Eventually the house should start appreciating again. If your option period to the seller is long enough you can capture appreciation to make your profit. What about this – “Are you willing to bring money to closing to sell your house?” And if their monthly payment is higher than what you can rent the house for, “Are you willing to pay the difference between the rental amount and your monthly payment?” These two questions may seem brazen, but ask yourself, what have you got to lose? If the seller is fully leveraged on the house or their payment is higher than the rental rate you have nothing to lose, because if they aren’t willing to make concessions then you can’t help them! Certainly some of us feel awkward in asking these questions, but trust me, if you ask this question 30 times, no matter how embarrassed you might feel at the beginning, you will start to feel much more comfortable by the end. These are just a few creative questions you might come up with to try to find terms that will allow you, as the investor, to make a profit, a WIN for you. When you add all of three of these together, meeting the seller’s need, meeting the buyer’s need and you making a profit, you have created a WIN-WIN-WIN. This is what you MUST do to be successful when investing in real estate with Lease Options. Do you see how much BETTER it can be to find deals in down markets? Motivated Sellers are EVERYWHERE and there are FEWER investors competing with you. Combining these two factors allows you to choose your deals with greater care. Always “Cherry Pick” your deals in a soft market. This is why experienced investors, who have been in both up markets and down markets, prefer the down markets. Soft markets can provide some of the best deals when investing in real estate. Wendy Patton is a published author, teacher, real estate investor and licensed real estate broker. Her book called Investing in Real Estate with Lease Options and Subject To Deals can be found at Barnes & Noble and Borders book stores. An autographed copy can be obtained if you purchase the book on her website at www.WendyPatton.com. She recently wrote her second book called Making Hard Cash in a Soft Real Estate Market. It can also be found in book stores and on her website. Wendy has over 23 years of real estate investing experience. She has lease optioned hundreds of homes, and invests in rehabs, multi-family, commercial, and pre-construction.

Who are Your Clients And a Few Reasons Why You Should Care?

2008-12-10T18:36:00.003-05:00

Based on some paid research from the National Association of Realtors here’s some snippets of information I’d like to share with you this month. * In 2007, the typical home buyer was 39 years old, earned $74K and purchased a home costing $215K. On average, this person searched eight weeks and visited 10 homes before a decision. * The number of first-time buyers rose to 39 percent from 36 percent of transactions in 2006. The median age of first-time buyers was 31, and the median income was $58,600. The median down payment by first-time buyers was 2 percent, but 45 percent purchased with no money down – the same as in 2006. DZ NOTE: This study was done before the subprime meltdown. * Sixty-two percent of buyers are married couples, 20 percent are single women, 9 percent single men, 7 percent unmarried couples and 2 percent other. Nine percent were born outside of the United States, and 5 percent primarily speak a language other than English. * Of first-time buyers who made a down payment, 73 percent used savings and 22 percent received a gift from a friend or relative, normally from their parents. * Nearly three-quarters of all buyers purchased a detached single-family home, 11 percent a condo, 9 percent a townhouse or rowhouse, and 5 percent some other kind of housing; 77 percent of respondents bought an existing home and 23 percent purchased a new home. * Buyers cast a wide net in searching for a home and use a variety of resources: 84 percent use the Internet (up from 80 percent in 2006), 84 percent use a real estate agent, 59 percent yard signs, 50 percent print or newspaper ads and 48 percent attend open houses. Smaller categories include a home book or magazine, home builders, television, billboards and relocation companies. Buyers most commonly start their search online, and then contact a real estate agent. * When asked where they first learned about the home purchased, 34 percent of buyers identified a real estate agent; 29 percent the Internet; 14 percent from yard signs; 8 percent from a friend, neighbor or relative; 8 percent home builders; 3 percent a print or newspaper ad; 3 percent directly from the seller; and 1 percent a home book or magazine. * Local metropolitan MLS Web sites were the most popular Internet resource, used by 54 percent of buyers; followed by Realtor.com, 49 percent; real estate company sites, 44 percent; real estate agent Web sites, 40 percent; for-sale-by-owner sites, 20 percent; and local newspaper sites, 12 percent; other categories were smaller. * Internet buyers spent an average of 4.8 weeks doing research before contacting an agent; traditional buyers only 1.7 weeks. That means an Internet buyer is better prepared and twice+ as less likely to waste your time. * The median age of a home seller is 45, with an income of $89,400. Seventy-five percent are married couples, had been in their home for six years and moved a median distance of 18 miles. Their home was on the market for seven weeks, up from six weeks in the 2006 survey; 89 percent were satisfied with the selling process. * The median distance from the previous residence was 13 miles. Fifty-six percent of all homes purchased were in a suburb or subdivision while 16 percent were in an urban area, 16 percent in a small town, 10 percent in a rural area and 2 percent in a resort or recreation area. * In 2207, the typical seller sold their home for 97 percent of the listing price, and 55 percent reported they had remodeled or made improvements within three months before placing it on the market, spending nearly $3,000 on the project. DZ NOTE: Most likely does not include relisting of properties. OK, there’s a TON of great information here, but let me focus on a few key takeaways for the beginners out there: Takeaway #1: Be very wary of investing in townhomes and condos, especially in this market where resell value is a big issue. 80% of the market would prefer a detached single family home. You should think about investing in properties that have broad appeal to as many different people in your market as possible. Takeaway #2: Most people move less than 13 miles away from their previous residence. A good strategy for finding lease-option and other buyers is to find those applicants close to your subject property. Here’s a tip. Experiment direct mailing to all apartment renters within a 3 mile radius of your property. Use a headline that reads something like “Why Rent When You can Get Your OWN Home for a Fraction of the Price, Less Than 3 miles Away” Takeaway #3: Do not underestimate the power of the internet. Partnering up with a real estate agent (and yes there are many that will provide you with low cost listings at our association) to get your properties posted on the MLS, Realtor.com and other sites in this market can pay huge dividends and help you get your properties sold fast. 84% of all house buyers do internet research BEFORE they start shopping. Do not be cheap. Your holding costs can add up fast and many agents will throw your properties in the MLS for a few hundred bucks. Takeaway #4: 84% of people are pre-programmed to use a realtor to buy and sell a house. That is the traditional way to do conduct real estate transactions and to a large degree (especially when buying) this will be your primary competition. When you make offers always address the realtor option. Show them the alternative because they will go investigate it themselves anyway. HINT: Based on your assumptions, in many cases the few extra thousand bucks they save using an agent isn’t worth the hassle. Article written by Dave Zehala, Executive Director, Columbus REIA

Columbus REIA in the News: the Daily Reporter

2008-11-19T18:15:00.001-05:00

EXCERPT FROM DAILY REPORTER ARTICLE NOVEMBER 17, 2008 KEITH ARNOLD Daily Reporter Staff Writer 11/17/2008 The economic climate in which the Columbus Real Estate Investment Association was organized 20 years ago is very similar to that of today - both difficult markets where inflation was rising, unemployment was relatively higher than in preceding years, and foreign conflicts attracted the attention of the Western World. Dave Zehala, who serves as executive director of the for-profit association with his brother, Steve, said he likes to pull several headlines from a 1990 newspaper to make his point to association members. They are amazed at the resemblance, he said. "Interest rates are lower now," Dave Zehala said, noting the exception. "We're not at the bottom of the downturn yet." The economic turbulence associated with a national foreclosure crisis and a global credit crunch is thought to be benefiting the group, Steve Zehala noted. "We're actually growing membership." His brother said the demographics of the new members include real estate agents, mortgage brokers and white-collar professionals. He said the latter group is seeking investments that will be a little more secure than publicly traded stocks. "Their retirement savings are getting hammered in the stock market," Dave Zehala said. The association is attractive to newcomers to real estate investment, the brothers said. Events such as the group's Dec. 4 Expert Roundtable offers an individual new to investment perspectives on developing a business and learning how to tackle current real estate challenges. The association's homepage - www.columbusreia.com - promises the participating expert panelists "will hold nothing back and will take the time to answer whatever questions you have regarding their area of expertise." The panelists are scheduled to discuss the following subjects: • creative owner financing techniques; • real estate investing marketing; • foreclosures; • wholesaling; • landlording; • getting started; • rehabs and new construction; • lease options; and • Section 8. Each expert will man a large roundtable setup in the main ballroom of the Makoy Center, located at 5462 Center St. in Hilliard. Each table accommodates work groups of 10 to 12 members at a time. Members and guests are encouraged to move around to different tables to listen in, learn and expand their knowledge bases. "We go out of our way to provide a friendly atmosphere where our members can meet, network, and be introduced to vendors," Steve Zehala said. "We give our members tools, training and events," his brother added. One of the most popular tools available to members is lead generation services. Steve Zehala said one of the greatest mistakes a newcomer to real estate investing is underestimating the value of a coach or mentor. Without it an individual may find the perfect property but wind up in one of two states - "analysis paralysis or fear." Membership is divided into three categories, silver, gold and platinum, the Web site outlined. Silver is designed to help the member build a strong real estate investing foundation and put together a Power Team, while gold is designed to help an investor take action so he can start seeing fast results. At platinum, members are offered specialized training and coaching by REIA faculty members to provide investors with the necessary resources to accelerate their growth. Memberships range in price from about $200 per year to about $400 per quarter, depending on the level of membership. For more details about the organization, visit Columbus REIA's Web site at www.columbusreia.com.

Next Meeting: Thursday December 4th: ASK THE EXPERT ROUNDTABLES!

2008-11-12T20:10:00.008-05:00

Are your Real Estate Investing Strategies and Tactics Getting Old? This Month Get a FRESH Perspective on Your Business and Learn How Local Pros are Tackling Today’s Biggest Real Estate Investing Challenges. Join us on Thursday, December 4th from 6:00-9:00PM for Ask the Expert Roundtable discussions where you can gather some fresh perspectives on your business and learn how some of Central Ohio’s most success real estate investors are tackling today’s biggest real estate challenges. Our panel of local experts has agreed to hold nothing back and will take the time to answer whatever questions you have regarding their area of expertise. Here’s how it works: Each expert will be manning a large roundtable setup in the main ballroom. Each table can accommodate 10-12 people at a time keeping the workgroups small and less intimidating. Members and guests are encouraged to move around the tables to listen in, learn and expand their knowledge bases. Here’s a sample of a few of the experts expected to attend this meeting: Creative Owner Financing Techniques – Steve Zehala,Columbus REIA Executive Director Creative financing techniques that will allow you to do your first deal without using your own credit, your bank or own personal funds. Real Estate Investing Marketing – Dave Zehala, Columbus REIA Executive Director How to jumpstart your marketing and generate high quality buyer and seller leads on a shoestring budget Foreclosures – Randy, Helen and Ryan Conway, Solutions for Homeowners, LLC. Insider secrets to doing successful short sale deals and negotiating with the banks Wholesaling – Rob Fill, Apobetic Business Systems How to negotiate and effectively pocket MORE CASH every wholesale deal Landlording – Joe Phelan, Phelan Properties How to build wealth and become a wildly successful landlord in one of the best buy and hold markets of all-time Getting Started– Dee Reller, RealEdge Resources, LLC Real estate investing demystified and how to overcome the obstacles that are preventing you from getting started Rehabs & New Construction – Bill Moorhead, Dunmoor Homes Battle tested rehab secrets that can save you countless hours and thousands of dollars of potential profits Lease-Options – Danielle Lautzenheiser,The Home Selling Team How and when to use Lease-Options, RTO and land contracts in your business Section 8 – Dave Peters, KJB Homes LLC How to understand and navigate the Section 8 system – and make more money

The Future of Housing

2008-11-11T08:48:00.001-05:00

Executive Director, Dave Zehala interviewed on "All Things Real Estate" radio show

2008-11-10T14:41:00.001-05:00

Listen in as Michelle Gorman interviews Columbus REIA Executive Director, Dave Zehala, on her national radio show and podcast called "All Things Real Estate" TOPIC: "Advanced Marketing Systems and Techniques to Help you Find and Screen more Motivated Sellers"

Columbus REIA Welcomes Scott Scheel

2008-10-28T09:52:00.003-04:00

Next Meeting Thursday, November 6th "How to Buy and Sell Commercial Real Estate in a Down Market" Presented by Scott Scheel 7:30-9:00PM This month the Columbus Real Estate Investors Association is pleased to announce that the Keynote Speaker at our next meeting will be commercial real estate investing expert, Scott Scheel. Scott is one of the nation’s leading authorities on creative commercial real estate investment. Scott is a self-educated multi-millionaire entrepreneur, two time winner of the Congressional Businessman of the Year Award (as recognized in the Wall Street Journal), and over the last decade he has purchased over $150,000,000 worth of commercial properties. In last 24 months of investing alone, he has also generated over $100,000,000 in cash and profits....using other people’s money! And at our next meeting Scott will teach you how to take your investment career to the next level by expanding by expanding into the ultra profitable world of Commercial Real Estate. Scott’s talk will cover all major types of commercial properties including apartments, retail, office, & land and he looks forward to presenting our members and guests with the details regarding his unique step-by-step commercial property real estate investing system. Here’s a few other things Scott will be covering in the meeting: · Why you should be investing in commercial property, even if you have no money or credit · The advantages of commercial property over residential real estate · The four major types of commercial property and the differences between them · Considerations you need to be aware of when deciding properties to invest in · How to evaluate commercial real estate deals for maximum profit · How the bank evaluates properties differently than you as an investor would · Why you should become a PIG farmer to create wealth · Conservative guidelines for evaluating commercial properties and minimizing risk · Three powerful formulas you must know to be successful investing in comm. real estate · Six proven methods to make money in commercial real estate in a down market · Seven exit strategies for multiple options to becoming profitable on every deal · Nine specific ways to buy commercial real estate using none of your own money · How to create win-win offers that get accepted the majority of the time · The five contingencies YOU MUST have in your contracts when buying commercial property To attend this meeting with a guest for FREE and save $25 at the door please pre-register at http://www.columbusreia.com/ or the box on the upper right hand side of this page.

Why you Need to Start Investing in Commercial Real Estate

2008-10-27T10:06:00.000-04:00

Why you need to start investing in commercial real estate By J. Scott Scheel Most people start investing in real estate because they view it as a path to wealth and freedom. What they don’t realize is that if they are only investing in single-family homes, they are trading in one job for a perceived higher-paying job, but they will not necessarily find the freedom they are looking for. The people that are making the “big money” in real estate are the ones that own the buildings, not the houses-the people who own the large apartment buildings, the large office buildings, the large warehouses. These are the people who have attained true freedom and are living the lives of their dreams. There are at least five great reasons why commercial real estate should be a major part of your overall investing strategy. First, because it’s valued differently than residential properties. The more income your commercial building brings in, the more it is worth. It has very little to do with “market comps.” Second, commercial properties bring you far greater cash flow than single-family homes. Investing 250,000 on a single-family home to make hundreds per month versus investing the same $250,000 on a 10-unit apartment building to make thousands per month? Third, because in a commercial property, you’re spreading out the risk among multiple tenants. You can have several units of an apartment, office, or retail building go vacant and still make positive cash flow. The fourth reason you should be investing in commercial real estate is because of a concept called “forced appreciation.” Forced appreciation means doing things with your property that will increase your income and decrease your expenses. Remember that themore income your commercial property brings in, the more it is worth. As an example, let’s go back to our 10-unit apartment building. Let’s say we plan on improving the quality of each apartment unit by replacing the flooring, upgrading to nicer doorknobs and bathroom fixtures and lighting fixtures, perhaps even adding some ceiling fans-all relatively inexpensive fix-ups. As a result, we can now raise the rents by $50 per month per unit. That’s $600 more in annual income per unit times 10 units, or $6,000 more per year total (which will also recapture all the costs of the fix-ups). Next, let’s decrease our expenses by $ 100 per month by passing on a portion of the utilities to the tenants, or by doing some competitive shopping for our lawn-care service and finding a company that does the same great job for less money per month. Times 12 months, we’ve just saved ourselves $1,200 per year. Total increase in annual income is $7,200 ($6,000 plus $1,200). By increasing our income by $7,200 per year, we’ve increased the value of the property by $72,000 or more. That’s the power of forced appreciation. There are a lot of strategies that you can use to force appreciation and these are just some of the simplest. But needless to say when you’re dealing with 10 units in one building, for instance in our small example, you’ve got an opportunity to improve many things that will help you justify the increased rents. Also, you’ll be seeing yourself dealing with a better tenant mix. Higher quality properties tend to bring more stable tenants. Passive Income = Freedom All of this leads us to the fifth reason why you should be investing in commercial real estate and that is the passive income. Passive income is the key to commercial real estate. The way that commercial properties are managed and the way they allow for a concentration of efforts lets you to put someone in place to manage those properties. In the beginning, on the smaller 10-unit buildings, you’ll probably need to manage them yourself. But as you climb your way up the ladder, and you start dealing with 20-units or above, you can then offer free rent on one of the units to someone in return for managing the rest of the units for you. As we discussed earlier, even with 10 units you can still make a monthly profit if a couple of the units are vacant, so giving away one unit is certainly a small price to pay in return for the freedom it gives you. Now you’ve got an on-site building manager who handles all of the tenant problems, tenant issues, tenant improvements,cleaning, and trash removal-all in return for free rent in your two bedroom, $550-per-month unit. Usually these people have other jobs, so you’re not their sole source of income. If your buildings are large enough to keep them busy full-time,however, you will babl have to pay them an hourly wage in addition to the free rent, but that will only be a small portion of your total monthly profits. Meanwhile, all the checks come directly to you. You deposit them, you pay the bills, you keep the difference-and believe me, that difference can be substantial. Even on the small 10-unit buildings that we’ve talked about, it’s easy to generate $2,000 to $3,000 dollars per month in positive cash flow, over and above your expenses. On larger, 20+ unit buildings,it’s not difficult to create positive cash flows in excess of $5,000 to $10,000 per month if these properties are acquired properly. And since someone else is managing the properties for you, all this money flows to you passively, while you are spending time with your family, or traveling, or looking for exciting, new opportunities. Obviously there are many more great reasons to invest in commercial real estate than these five that I’ve given you-in fact, I could easily list another thirty: cost recovery, how it’s financed, management opportunities, scales of economy, and so on. So, how do you get started’? Just as You would get started investing in residential real estate by getting your education first (either “the easy way,”through books and courses and investor group meetings, or “the hard way,” through the school of hard knocks), the place to get started with commercial real estate is by getting your education and learning the terminology. It’s not that different from residential real estate, and it’s not that difficult to understand. Next, look around-see what’s going on in your market place. Find several small apartment, office, or retail buildings for sale, get the financial information on them, and learn how they work-what they rent for, how full they are, how the utilities are split up, what the expenses are, and so on. Start doing some “practice” deals-go through the motions of buying the property with as much diligence as you would if you were buying a single-family home. Once you understand what the income is and what the expenses are, you can start to figure out how you would acquire that property. The sooner you get this process going, the sooner I guarantee that you will be a commercial property owner. Don’t wait to get started-now is the time! This is the best commercial market in the last 50 years. Properties are available extremely inexpensively, and there are many distressed properties just waiting to be picked up with millions of dollars in equity in all of them. The bank rates right now for commercial property are extremely low. These factors combine to offer you an incredible opportunity. Do not let this market place pass you by, or you may very well regret it. Can you imagine buying five 10-unit apartment buildings in the next 12 to 24 months? At the end of that time, you’d have 50 units, managed by someone else, and generating six figures of annual passive income. The exciting part is that apartment buildings are just the tip of the iceberg, and in my opinion, not even my favorite investments. I personally prefer office and retail space which have a much higher profit potential. Apartment buildings are nice but office space and retail space generate the really big money. I can promise you that if you start following these simple strategies, you’ll generate more than enough gold to fill up the pots for yourself as well as your family and loved ones. The sooner you get started, the sooner you’ll see your first $1 million profits! AUTHOR’S INFO: Scott Scheel Commercial Real Estate Investor See Scott speak LIVe at our next meeting on November 6th, 2008

“How to Get Maximum Efficiency in Minimum Time Putting Together Your Short Sale Packages”

2008-10-14T20:43:00.005-04:00

SHORT SALE MINI-LESSON 2:

Did you like this mini-lesson? If so, check out the Columbus REIA Short Sale & Foreclosure Summit on October 25th and October 26th. 2-days worth of cost effective training. Taught by local pros. Learn how to get results within 45 days or less. For more info, please visit:

www.columbusreia.com/summit

Presented by Columbus REIA, Executive Director, Dave Zehala

Columbus REIA Executive Director Steve Zehala Helps Project Manage the Barlay House

2008-10-11T20:36:00.000-04:00

The Homecoming - As reported on the front page of the Columbus Dispatch on September 22, 2008 It's not about the house in which you live, but about the home you keep. Monday, September 22, 2008 By Misti CraneTHE COLUMBUS DISPATCH Doug Barlay decided his remaining days were best spent back in Columbus, in the fixer-upper he and his family loved but had to leave when he took work in Kentucky. What happened next is a story about love and compassion and how one church put its faith into action. Doug Barlay's remaining time would likely be marked in months, said the notice in the St. Catharine Church bulletin. Incurable cancer was bringing Doug, a lifelong parishioner, and his family back to Columbus from Kentucky, where he'd moved for a good job, to make a better life for Sheri and their four children. The bulletin told parishioners that the Barlays planned to move back into the house they had left behind and hadn't been able to sell. The problem was that the house was in no shape for the family. It lacked insulation and had terrible windows. "We are trying to arrange to get as much stuff done as possible to give them some peace of mind in this stressful time," it said. "This is something that we don't want a dying man to have to worry about." In Kentucky this past year, the Barlays held tightly to one another. Sheri had stayed behind for a while to try to sell the house and to let the older girls -- Victoria, now 13; and Rebecca, 10 -- finish the school year at St. Catharine School. She missed her husband and was ready for her family to share a home again when she and their four children -- Koen, 4, and Katharine, 2, are the others -- traveled in July last year to join Doug in Bowling Green, Ky. Doug had developed a terrible cough that wouldn't relent. In late October, a doctor told him it was lung cancer that already had spread. It was both inoperable and terminal. He continued working full time through six rounds of chemotherapy. His job fitting amputees with artificial limbs and helping them regain mobility offered a respite from thoughts of his own illness. The Barlays took a trip to Lake Cumberland in Kentucky with their extended families. They renewed their vows and traveled to Myrtle Beach, S.C., where Doug spent time alone with each of his children. One day this summer, Doug called his wife to his office. The pain was gaining intensity; his ability to work was waning, he told her."I think I'm ready," Sheri remembers her husband telling her as they both wept."It's time to go home now." Doug's remaining days, he'd decided, would be best spent with those he loves. He'd thought ahead, to the life Sheri would have without him, and wanted her to be close to family and friends. They would return to the fixer-upper they'd loved and left behind. They made a list of projects to tackle as money, time and energy allowed. And so began the work of the people of St. Catharine and others who love the Barlays, and some people who'd never met them but felt drawn to the house at 161 S. Harding Rd. on the East Side. What started with plans to paint a couple of rooms, clean the house and stock the kitchen blossomed. First, some church people got to talking, then they connected with some friends, then the Knights of Columbus got involved and the whole thing just took off, said Steve Zehala, who oversaw the project. They raised money -- $25,000, more than they ever imagined -- and they found companies willing to donate goods and labor. Volunteers worked 16-hour days for 10 days straight, bumping into one another when the ranks climbed into the dozens. Some took vacation days to help. Those who couldn't manage physical labor cooked for the workers. The house buzzed. Workers put a new roof on an older addition that would house a first-floor bedroom for the couple. The cancer in Doug's right lung has spread to his sacrum, the large triangular bone at the base of the spine, and to his upper back, making stair-climbing painful. The workers ripped out and replaced decades-old carpet. They installed ceiling fans and painted the 55-year-old house the Barlays had bought in 2003. They rehabbed an upstairs bathroom, transforming it into something sure to wow the older girls. They put in a double sink atop a cherry vanity. A new tile floor replaced deteriorating linoleum over a failing subfloor. They insulated the whole house. They landscaped. They stocked the refrigerator, the freezer and the cupboards. They bought diapers for the baby. They made plans for new windows. Doug is a generous man, with his time, kindness and concern, said longtime friend Pete Hamer. This project was a chance to give back."There was a lot of energy, a lot of fun. It just kept on going and going and going," said Hamer, who became friends with the Barlays through his wife, Mimi."There was a lot of thought about, 'When the worst happens, how is Sheri going to afford to live?' " They found something to do with their helplessness, something tangible to accompany their prayers."The response was absolutely overwhelming," said Zehala's wife, Amy. "It was like living in Mayberry."They found grace amid darkness. "If there is a legacy to be left by Doug, other than his family, I think there could be no better legacy than to have his community come together in such a tremendous way," said his lifelong friend, Rick Ochs. "There is love in the world. There is concern for our fellow people." Before moving day, Doug and Sheri knew they had to share the prognosis with the older girls. Victoria and Rebecca had known for months that their father had lung cancer, but they didn't know it was incurable. "I knew that would be the last day of their innocence," Sheri said. They nestled into their father's arms as he told them. Victoria, Sheri remembers, asked who would walk her down the aisle. Until now, the Barlays could pick and choose whom to tell and when to talk about the cancer, Sheri said. In Kentucky, she could go to her job at Macy's without everyone knowing that her husband was dying. "We could be in denial. Coming home, everyone would know." Aug. 18 dawned in Bowling Green to meet a family ready for the journey home. This was the day they'd be welcomed into the comfort of friends and family but also the day they'd be surrounded by those who knew what the future held. As the Barlays approached their home, Sheri fielded calls designed to gauge their whereabouts without tipping her off. Meanwhile, S. Harding Road was home to a party. People swarmed the lawn and the driveway. Dusk fell, and the Barlays arrived to hugs and tears. The Rev. Michael Lumpe stood on the lawn and led a prayer.Then he raised his hand heavenward to bless the house.? "May the blessing remain all the time on this place, and may the angels watch over and protect all who dwell here." Doug sometimes finds himself fearful of the world in which his children will live without him. When he came home that day, exhausted from the trip and in pain, he was overwhelmed. And he was reassured that his beloved wife and children will not be left adrift. After she returned to the embrace of a community and to a home that was barely recognizable, Sheri tried to describe how she felt."My chest had that really crazy 'full' feeling," she wrote on the blog she started before the move to Kentucky. " Full like on your wedding day when you are just filled with promise, hope, joy, peace those same feelings you feel a couple weeks after you bring a baby home."She's still struggling to find a way to say thank you. She hopes one way of showing her gratitude is with a promise to raise children who are just as kindhearted as the people who came in her time of need. At home recently, fearing for what the future will bring, Sheri rested a hand on her husband's now-slender thigh. He dabbed sweat, a remnant of a brutal series of radiation treatments to slow the cancer, from his forehead. It was their 15th wedding anniversary. Sheri and Doug remembered leading premarital retreats for engaged couples, when they'd tell them the stories of their courtship, of how hot she thought he was (and still is), of how beautiful she looked when he returned from the Navy. Then they'd tell them that a marriage is not about the wedding day, that it's about a lifetime of peaks and valleys and what lies in between. And it's not about the house in which you live, but about the home you keep.

FREE $170 Money Bag if You Attend this Event on Sat, Oct 11th!

2008-10-07T11:56:00.004-04:00

Columbus REIA Blog Subscribers, You are invited to a FREE one-day real estate investing seminar with nationally renowned creative financing expert Kris Kirschner on Saturday, October 11th at the Hilton at Easton. The topic for this one day session will be: "How to Buy & Sell Houses on Autopilot Using None of Your Own Money or Credit" To register for this FREE event call 800-455-5811 or... ...you can register online at: www.ohiorealestatesecrets.com Here's some more info regarding this event: DATE: Saturday, October 11th, 2008 TIME: 9:00AM-4:00PM. LOCATION: Hilton at Easton, 3900 Chagrin Drive, Columbus, OH 43219 MAP: Follow link below http://www1.hilton.com/en_US/hi/hotel/CMHCHHF-Hilton-Columbus-at-Easton-Ohio/directions.do#localmap TOPIC: "How to Buy & Sell Houses on Autopilot Using None of Your Own Money or Credit" WHO: Kris Kirschner, "The Brown Truck Millionaire" ABOUT KRIS: Kris has taught his creative financing and auto-pilot techniques to over 50,000 students nationwide. He has shared the stage with Donald Trump and Robert Kiyosaki. He was a struggling UPS driver that was dead broke before he discovered the power of real estate investing. And over the last several years, he has accumulated massive wealth buying and selling single family homes without ever talking with a bank or using his own credit. A FEW THINGS KRIS WILL COVER: * How you can buy houses without using any of your money or your credit * Why sellers will give you equity for FREE without paying off their loan. * What are the steps to being successful in today's real estate market? * How to succeed in this market and deal with changing market conditions. * How to sell houses when the Realtors can't. (sell in A MATTER OF DAYS, not months when you do it the RIGHT WAY) * How to know if what you're learning about real estate really works. * What special skills or training you'll need to be successful. * How much time it really takes to invest and what you need to know about competition. * Why some investors make it BIG and others struggle just to get by.

Short Sale Mini Lesson #1

2008-10-06T12:07:00.000-04:00

For more information regarding the Columbus REIA Short Sale & Foreclosure Summit on October 25th and October 26th please visit:

www.columbusreia.com/summit

Presented by Columbus REIA Executive Director, Dave Zehala

Is Your Bank on The Subprime Meltdown List?

2008-10-05T12:30:00.000-04:00

Are you wondering if your bank is on the sub-prime meltdown list putting your hardearned financial assests at risk? According to the Global Investing Update report the total expected sub-prime related losses through 2009 are estimated to be about $500B. Here's a breakdown of subprime losses by major lending institutions: MAIN SUB-PRIME LOSSES SO FAR IN BILLIONS: Merrill Lynch: $22.1 Citigroup: $18 UBS: $13.5 Morgan Stanley: $9.4 HSBC: $3.4 Bear Stearns: $3.2 Deutsche Bank: $3.2 Bank of America: $3 Barclays: $2.6 Royal Bank of Scotland: $2.6 Freddie Mac: $2 JP Morgan Chase: $3.2 Credit Suisse: $1 Wachovia: $1.1 IKB: $2.6 Paribas: $.197M

Columbus REIA Welcomes Kris Kirschner

2008-09-25T08:38:00.003-04:00

NEXT MEETING: Thursday, October 2, 2008

TOPIC: How to Buy And Sell Houses on Autopilot Without Using Your Own Money or Credit

To register for this meeting and attend for FREE go to http://columbusreia.com/node/58

PLUS...Attend this meeting and get a FREE One-Day Training Class with Kris Kirschner on Saturday, October 11 at the Hilton at Easton.

What's Working Right Now: Foreclosure Investing

2008-09-19T14:30:00.005-04:00

For those of you that follow football you've probably heard a head coach say that “you take what the defense gives you.” If the defense is running 8 men in the box you need to get your passing game going. If the other team is running a prevent defense, you throw underneath the coverage and hope your guy can make a big play. The same holds true for real estate investing, but in this case, you take what the market gives you and right now what’s working is short sales, REO’s, note sales, and post bankruptcy deals. Here’s part of the reason why: * U.S. foreclosure filings more than doubled in the second quarter from a year earlier as falling home prices left borrowers owing more on their mortgages than their properties were worth. * Nationally, 1 in every 171 households was foreclosed on, received a default notice or was warned of a pending auction. That’s a 121% increase from a year earlier. * Another 25 million U.S. homeowners risk owing more than the value of their homes making it impossible to for them to negotiate better loan terms or sell the property without contributing cash to the deal (source: Pacific Mgmt Group). * Based on current market conditions, most pundits are estimating that BEST CASE, we are still looking at another year of this foreclosure mess. * Bank seizures in the first half of this year increased by 154%. (source: RealtyTrac) * Bank repossessions, or REO’s –meaning “real estate-owned” –accounted for 30% of total foreclosure activity in the second quarter. These numbers are up 24% from the prior period (source RealtyTrac). * The foreclosure crisis IS NOT limited to subprime loans. Subprime was the tip of the iceberg. Prime and Alt-A loans (one notch above prime), will by far have a greater impact. James Dimon, CEO of JP Morgan Chase, says he is expecting losses on his PRIME loans to triple in the coming months. * Delinquencies on mortgages tend to peak 3-5 years after the loans are made. There is another big wave of defaults getting ready to hit that were originated in 2007. * Freddie Mac and Fannie Mae, which own or guarantee half of all mortgages, are trying to stem this foreclosure tide. Last week they issued policy statements to banking partners urging them to implement policies to prevent foreclosures (THINK getting short sales accepted here). You cannot ignore these facts. While the news media continues to report the largest mortgage meltdown and foreclosure crisis in recent history, what you may not know is that there’s a small group of Central Ohio investors out there that are quietly having their BEST YEAR EVER! And the reason is this: These investors have figured out that the real estate investing strategy that is trumping most of the other strategies right now is foreclosure investing. Here's why: * There is a ton of supply putting downward pressure on price * The banks are motivated to do deals for pennies on the dollar * With the right training, these deals are straightforward and easy to do * You can do these full or part-time * You don't need a pile of cash to work these deals Want to learn more about investing in foreclosure real estate? Visit www.columbusreia.com/summit

Next Meeting: Thursday, October 2nd, 2008, Kris Kirschner

2008-09-19T14:30:00.001-04:00

Buying and Selling Houses on Autopilot® Using None of Your Money or Credit Presented by Kris Kirschner 7:30-9:00PM Special Offer: Attend this meeting and get a full day of real estate training conducted by Kris on Saturday, October 11th for FREE! Must attend meeting for details! If making over $15,000 a month buying and selling houses using none of your money or credit sounds good to you - imagine if you could do it in less than 5 hours a week, in your spare time, and you had REAL PROOF that it works. Sound too good to be true? Well it’s not, and this month the Columbus Real Estate Investors Association, is pleased to have auto-pilot systems expert Kris Kirschner show you how you can do it too. Imagine you had an autopilot™ complete offer software package helping you on your first or next real estate deal. After someone other than you mails out a letter to a motivated seller you receive answers to an exciting series of questions. Your autopilot™ complete offer software is going to take all the seller’s answers and organize them in a complete offer and hand you everything you need to make money. Kris Kirschner calls it his automated intelligence program and when you use it you’ll not only know exactly where you’re going, but it’s like having a secret friend that writes your offers, tells you if you have a good deal or bad deal, shows you your best way to make money and auto-fills all your documents for you. Kris’s systems work and they have saved thousands of investors across the country time, effort and money. Worried about selling houses in a slow market? Kris will show you his Fast Profit Strategy to make $27,000 selling houses IN DAYS, NOT MONTHS even when the Realtors and Builders can’t! And the best part is that when you sell your houses using the autopilot™ system, there’s little or no personal involvement from you because you don’t have to get involved in the renovation. You don’t have to speak to buyers when they call. You don’t have to show houses. You don’t even have to meet the buyer until they’re ready to hand you money! At this meeting, Kris will also show you how 75% of the time you can sell your houses with no appraisal, no Lender delays and no need for sub-prime lenders. That means you’re in control of your cash flow and you can do it as often as you like because you’ll learn how to sell houses to anyone regardless of their credit! Here’s a few other things Kris will be covering in the meeting: · How you can buy houses without using any of your money or your credit · Why sellers will give you equity for FREE without paying off their loan. · What are the steps to being successful in today’s real estate market? · How to succeed in this market and deal with changing market conditions. · How to sell houses when the Realtors® can’t. · How to know if what you’re learning about real estate really works. · What special skills or training you’ll need to be successful. · How much time it really takes to invest and what you need to know about competition. · Why some investors make it BIG and others struggle just to get by. · Why you’ll never make the money you deserve unless you automate and outsource. And much more!

Can You Do A 1031 Exchange on a Quick Flip?

2008-08-27T08:55:00.003-04:00

by Albert Aiello, CPA, MS Taxation. Did you like this article? If so, come see Albert talk about these and other important tax and wealth creation strategies at the next Columbus REIA real estate meeting on Thursday September 5th at the Makoy Center in Hilliard, Ohio. Non-members can pre-register in advance and attend this meeting for F-ree (save $25 at the door). To preregister now please visit http://www.columbusreia.com/ and click on the box that says "2 FREE Tickets". *************************************** The answer is yes, provided you know the law in depth and plan accordingly. But first some background. A 1031 exchange is a great way to create wealth by saving substantial taxes on the sale of investment property by reinvesting the untaxed sales proceeds in a replacement (investment) property within the IRS requirements of Section 1031 including the applicable regulations, rulings, and tax court cases. One of these requirements is that the properties in the exchange must be held for investment or business use. This requirement is known as the “holding requirement”. The IRS interprets this “holding requirement” to mean that the relinquished and replacement property must be held for a certain time period. Therefore conventional thinking is that a quick flip of a property will not qualify for the tax deferral benefits of a 1031 exchange, because of this exchange holding requirement. But this is based on IRS interpretation which does not have the force or effect of law. (The IRS does not have the authority to make laws; only congress does). Accordingly, the tax law does not give any specific, objective time period requirement. In other words, there really is no statute as to how long a property must be held before it qualifies as held for investment. A full-blown discussion of the background of all of this is beyond our scope. However here is an overview of some bottom-line recommendations to help you qualify for 1031 tax-free treatment on quick sales. 1. Know the tax law citations that support quick sales as exchanges. There are numerous cases. One is Rutherford, where the transfer was immediate. Others can be reviewed with a competent 1031 exchange specialist. 2. Avoid being a dealer especially by documenting investment intent. This was discussed in a another article titled, Will Wholesaling Make You a Dealer? and published in this months edition of the Columbus REIA newsletter available to members. 3. Hold the purchased replacement property for at least 2 years under the “Economic Unit” and “Continuity of Investment” doctrines > the foundation of qualifying exchanges. This is a strong indicator of investor status, even on the quick selling side of the relinquished property. Reason: These fundamental theories indicate that the relinquished and replacement properties are together as one unit where there is a long period of ownership and a very strong argument for investment intent and investor status. Therefore, under these doctrines, the longer holding period of the keeper replacement property should carry over to the short “flip” period of the relinquished property. Dating back to the 1920’s, these doctrines are foundational and thus a powerful defense against the IRS. (I know, as I have successfully used them in opinion letters for IRS examinations.) 4. Audit-Proof your exchange by audit proofing your taxes. If there is no audit there are no issues and no worry. “Audit-Proofing” (not getting audited) is the first rule of tax-reduction planning. Understand that nothing being done here is illegal, but is based on legal positions. So while you are taking such positions, you still have the legitimate right to employ audit proofing steps. One such step is to report all property transactions (including exchanges) on partnership form 1065. At the present time, partnership returns (form 1065) are audited less than other forms including Schedule E and corporation returns, 1120 or 1120S. (Because of its many tax disadvantages, you should not hold real estate in any type of corporation, anyway.) You should also properly complete form 8824 which is the specific IRS schedule for reporting 1031 exchanges. It is a supporting schedule to tax reporting forms (such as form 1065) and is the only exchange form that actually goes directly to the IRS. The complete and accurate filing of 8824 would mostly likely reduce your chances of an audit. You also should engage a Qualified Intermediary (QI) that specializes in complex exchanges, such as those combined with quick sales.

The Goldmine of Brilliant Tax Reduction Strategies

2008-08-04T10:22:00.005-04:00

NEXT MEETING THURSDAY SEPTEMBER 4th: KEYNOTE SPEAKER: Al Aiello, Wealth Protection and Tax Expert "The Goldmine of Brilliant Tax Reduction Strategies" Are you interested in learning how to legally save a bundle on your taxes every year, yet still make money, without IRS problems and, without paying bad tax advisors? Are you the type that puts off your tax planning until the end of the year and by the time you get around to taking action and maximizing deductions it’s usually too late? Do you realize that this can cost you tens of thousands of dollars over the course of a just a few short years? If so, you are not going to want to miss this month’s speaker Al Aiello. Al is a nationally recognized speaker and educator specializing in Wealth Protection and Tax Reduction Strategies. He is a CPA. He has a Masters degree in Taxation. He’s been a college professor. And despite all the “bean counter” stereotypes out there, he is a dynamic and high energy speaker, whose knowledge and insider secrets will blow you away. Come join us on Thursday, September 4th, and listen in as Al discusses -- The Goldmine of Brilliant Tax Reduction Strategies. Al will share with you his vast experience and extensive research so he can help you to legally pay little or no taxes, even if you make 6 figures or more!!!! Here’s a few of things Al will be covering in the meeting: · Proven & powerful ways to audit proof your return and keep the IRS out of your life!! How to aggressively take deductions without increasing your chances of an IRS audit! · The best time to file your return to reduce your chances of an IRS audit. · Powerful overlooked deductions that can save you $1,000’s! · How to legally double and triple your depreciation deductions, save thousands! · Little-known strategies to write-off real property components all in one year for big tax savings! · How to get huge depreciation write-offs on land. Save more taxes! · How to legally write off roofs, windows, foundations, other large capital items as deductible repairs! · Fully deduct any amount of rental property losses, even if your income is over $150,000!! · How to legally never pay taxes again when you sell property, even if profits are huge! · Sure-fire techniques on how to avoid being a dealer! · How to use the powerful 1031 exchange to save taxes, including flips · How to use IRA’s to pay zero taxes on flips. And Much More! If you are not a member of the Columbus Real Estate Investors Association and would like to save $25 per person and pre-register for this meeting you can do so by visiting our website at http://www.columbusreia.com/(fill out the box on the right hand side of this web page that says "Get 2 FREE tickets Now!").

Do The Right Things From the Get Go....and Document it!?

2008-07-29T01:39:00.002-04:00

So what will you say when YOU are standing in front of a Judge? My mentor Jack Miller used to paint a very vivid and real picture that has never left my mind. His basic premise was that in every deal that you get involved in, there is a chance that you may get accused of some sort of misdeed by another party. It's possible that at some point in time you ARE going to end up in front of a judge as the presumed "Expert" in the deal and you better have a good story and good documention. To make the story hit home he would remind us that most judges understand that they are elected by the "Ma & Pa Kettles" of the world and not real estate investors, so your story needs be very good about how you purchased someone's property at a 50% discount without taking advantage of them. Additionally, he would remind us that when you are in front of a judge they can pretty much do whatever they want and they can put you in the slam for a very long time if they choose. Be Prepared.

Always in the back of mind... As a result of this vivid image, I have always tried to make sure that I put deals together in such a way that I could make a clean and simple case that everything was done honestly and by the book, should I ever end up in front of a judge.... and you should too. In the current state of affairs in this country, real estate investors are being blamed for a lot of issues and quite frankly many of them have created some problems for all of us and we need to take notice and take precautions.

Particulary Worrisom... Jack's point has recently really hit home for me when, a few days ago, I came to find out that in some counties in Ohio they are prosecuting real estate investors for FELONY theft for allowing properties to go into foreclosure while still collecting rent from tenants. Supposedly they are not making their mortgage payments but they are collecting the rent. The details are sketchy but whoa, this is a BIG development and big issue.

Jail time...not good news... Never before have I heard of someone being prosecuted criminally in this type of situation, but the reality of this is that you could have JAIL time for this and you are being prosecuted by the government who has an unlimted budget to come after you. This is not good for investors, and the word is that some prosecutors want to make an example of a few investors to let everyone know they don't like this sort of behavior and that Real Estate investors in their crosshairs and they are ready to shoot!

So what do we do? Disclose, Disclose, Disclose! Fortunately there are a lot of good common sense business things that we can do to protect ourselves from these sort of issues that Judges and others like and understand and are just plain smart to do. The first step in this process it to disclose everything! Disclosures will go a LONG way in keeping you out of trouble as it gets very diffuclt for someone to claim they were "taken advantage of" when you have disclosed your intentions up front. When I am buying a house I put my disclosures in BOLD, and in all caps, in black box right above where a seller signs. Here are my "when I am buying" disclosures:

BUYER DISCLOSURES

1. BUYER IS A PROFESSIONAL REAL ESTATE INVESTOR WHO IS BUYING THIS PROPERTY FOR THE PURPOSE OF MAKING A PROFIT AND INTENDS TO IMMEDIATELY RESELL THIS HOUSE FOR MAXIMUM PROFIT.

2. THERE ARE NO AGREEMENTS OR PROMISES MADE BY EITHER PARTY TO EITHER PARTY, WHICH HAVE NOT BEEN PLACED INTO WRITING AND ACCEPTED BY BOTH.

3. BUYER HAS NOT ADVISED US IN ANY COURSE OF ACTION WHICH MATERIALLY AFFECT OUR DECISION WITH RESPECT TO THIS TRANSACTION, NOR HAVE THEY HELD THEMSELVES TO BE COMPETENT LEGAL, ACCOUNTING, OR FINANCIAL COUNSELORS IN CONNECTION WITH ANY ACTION WE MIGHT TAKE.

4. BUYER MADE A FULL DISCLOSURE OF HIS PROFESSIONAL EXPERTISE AS A PROFESSIONAL REAL ESTATE INVESTOR WHO IS IN BUSINESS TO MAKE A PROFIT, AND THIS WAS DISCLOSED FROM OUR FIRST CONTACT.

5. BUYER DID NOT ADVISE THE SELLER AS TO THE TRUE VALUE OF SAID PROPERTY IN THIS TRANSACTION AND MADE NO STATEMENT OR EXPRESSED OPINION OF VALUE IN CONNECTION WITH THE PROPERTY IN THIS TRANSACTION.

6. WE HAVE HAD EVERY CLAUSE AND LINE OF THIS AGREEMENT READ TO US AND HAVE HAD ALL OUR QUESTIONS ANSWERED TO OUR SATISFACTION, AND WE HAVE BEEN ADVISED THAT WE SHOULD SEEK PROFESSIONAL AND LEGAL COUNSEL IF WE NEED IT.

7. 48 HOUR RECISION: TO PROTECT THE SELLER, FOR ANY REASON IN THE 48 HOURS FOLLOWING THE EXECUTION OF THIS AGREEMENT THE SELLER MAY RESCIND THIS AGREEMENT BY FAXING A RESICION TO FAX NO___ (THEREBY KEEPING FAX RECEIPT AS PROOF OF FAX) AND THIS AGREEMENT WILL BECOME NULL AND VOID.

Warmer and Fuzzier... Now imagine that you are standing in front of the Judge and the other party is claiming that you took advantage of them and ripped them off and you are a swindler and yada yada yada. Well now you take out your purchase agreement and show it to the Judge and show him the above disclosures and say, "Your honor, I disclosed everything in writing and I even gave the folks 48 hours to kill this deal and they still decided to do this deal, what else could I do?". This I believe would put you in a MUCH better position with a clear conscience. Could you lose a few deals? Maybe, but our experience has been anything that you put in bold and all caps with a box around it is ignored as mumbo jumbo.

Keep that Visual... Now, from this point forward in your career you should adopt the mindset of "How will this look in front of the Judge" and make sure that all deals you do are as clear as possible, so when its your turn in front of the Judge you can confidently know and say that you did everything you could to protect the other party. More to come on this subject. To unsubscribe or change subscriber options visit:

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There's A Silver Lining in Every Cloud: Rents!

2008-07-22T01:23:00.002-04:00

This month let me kick things off by sharing with you some important facts:

-According to the New York Times, the percentage of households headed by homeowners fell to 67.8 percent this year, the sharpest decline in 20 years. By contrast, the percentage of households headed by renters increased to 32.2 percent.

-Studies at the Joint Center for Housing studies had predicted an increase of 1.8 million renters from 2005 to 2015, given expected population trends. Instead, they saw an increase of 1.5 million renters from 2005 to 2007 alone.

-In the first quarter of this year, census data shows 35.7 million people were renting homes or apartments.

-According to the Bureau of Labor Statistics, national rents have steadily increased about 11 percent since 2005 (about the time when home ownership rates started to decline).

-In 2005, vacancy rates for rental properties in Cleveland hovered around 10 percent, according to the Northeast Ohio Apartment Association. Today, that rate stands at 5.2%.

-The Columbus Dispatch analyzed a federal database of 1.4 million mortgages signed in Ohio from 2004 to 2006. The analysis showed 42 percent of mortgages taken out on rental properties statewide were subprime in 2006 - almost double the rate in 2004. This has resulted in a rash of landlord foreclosures forcing these tenants to find new homes. So why is this important to you?

First of all, increased demand for rental properties will give you a larger pool of potential tenants to choose from. With the right screening mechanisms in place this means the quality of your tenant should significantly improve.

Second, this increase in supply means an increase in your rents. If you have not raised your rents lately or have not compared your rents to new rental properties in your area, now would be the time to do so. If not, you might be leaving money on the table.

Third, now is a great time to be landlord. For those of you wholesalers out there, you might want to add some buy-and-hold techniques to your bag of tricks. This is one of the best buy-and-hold markets in a lifetime and it would be a shame for you to sit this one out on the sidelines.

Fifth, don't limit yourself to single family homes in this market environment. You might want to stretch yourself and start looking at multi-family and apartment buildings.

HOW THE HOME PRICE INDEXES VARY Have you ever noticed the huge variances in the different home price indexes that track the ups and downs of our real estate markets? Here's a listing of the top 3 indexes and how they differ:

-The Standard & Poor's/Case-Shiller nationwide housing index focuses on major metropolitan areas and includes expensive properties as well as cheaper ones. The S&P/Case-Shiller indexes use only purchase prices gathering information from county assessor and recorder offices.

-The Office of Federal Housing Enterprise Oversight (OFHEO) Home Price Index, more national in its scope, excludes higher-priced homes and ones financed by riskier mortgages, and it includes refinance appraisals. The OFHEO index is calculated solely using home loans of $417,000 or less that are bought or backed by government-sponsored mortgage companies Fannie Mae and Freddie Mac. That excludes properties bought with some of the riskier varieties of home loans that have gone sour this year.

-The National Association of Realtors uses a median price of a home sold. Many economists consider the OFHEO and Case-Shiller indexes to be better measurements of the housing market than the Realtors' report, because both indexes examine price changes for the same properties over time instead of calculating a median price for houses sold during a particular month or quarter. To unsubscribe or change subscriber options visit:

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Who Says The Future Of Real Estate Investing Market Is The Web?

2008-07-10T01:18:00.001-04:00

O.K., there's a lot of hype out there that the future of real estate investing marketing is the web (think Craigs List, email buyers lists, blogs, ebay stores, Facebook company
listings, and online video here) That said, let me cut to the chase. We are admittedly internet marketing junkies BUT direct mail still remains my favorite media and here's
why: A key finding from the International Communications research Study released last year, found that despite today's digital world consumers clearly prefer old fashioned mail to all other communication vehicles, most notably email.

Here are some of the highlights of this study: * 73% prefer mail for receiving new product service announcements, offers and newsletters from companies they do business with vs. 18% who prefer receiving the same content by email. * 70% prefer mail for receiving information from companies they are not doing business with. This makes lead generation tough if you do not do direct mail (email was 10% in this study). *31% of consumers say they frequently toss mail as possible junk, but 53.2% say they frequently delete such email unopened. These stats also don't consider deliverability of emails.

Based on my research, I estimate that 80% of the emails we send out never make it past the SPAM filters. So let's work the math here. 1000 pieces of direct mail get sent. 31% gets tossed. That leaves me with 621 opportunities to get my marketing message read. On the other hand, if you send out 1000 emails, 200 might get read, but 53.2% get automatically deleted. That means only 94 get read.

So, if you are a real estate investor that has spent considerable time and money building a buyers list that contains email, but not a mailing address, you're asking for marketing trouble. Based on these numbers, you would need to send out 6634 emails to get the equivalent reach of a 1000 piece direct mail campaign.

The counterargument to this is that emails are free and you are saving on postage. Are the emails really free? How much time did they take to collect? What good are they if they don't get read?

My point: Do the email campaigns to move your inventory but if you want to maximize your result, make sure you lick a few stamps every now and then!

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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The Real Road Less Traveled

2008-07-06T01:16:00.001-04:00

"Sticktoitiveness" is a strength of character, a philosophical position, a consciously valued and directed behavior, a habit. In any business category, fewer than 5% of the owners create extraordinary incomes, wealth, security and independence; 95% flounder, frustrated for life. If you spent 25 years chronicling the behavioral differences
between the mediocre majority and high-achieving minority as I have, the most striking distinction you would find is this: winners stick to things, losers give up easily, flit about randomly. Losers waste all the years of their lives looking for the unicorn of modern fantasy, the easy button. Winners find winning strategies and stick to applying them.

Sylvester Stallone was rejected as an actor by every Hollywood studio. The script he wrote for Rocky was also summarily rejected by all but one - and they agreed to buy it for a flat fee; Stallone, broke at the time, refused to sell it unless he could star in the movie and receive customary compensation. He made the rounds again and again. He persisted until he finally got his way. There must be thousands of better actors and thousands of better script writers who were working as waiters then and are still working as waiters now. The difference is not talent. In my 30 years' business experience, I've found talent to be the most overrated of all things, less likely to lead to success than most things.

By comparison, staying stuck like super-glue to an objective; acquiring the needed know-how at any cost; ignoring others' criticism; refusing to take no for a permanent answer, fighting, scrapping, studying, figuring out one more piece then one more piece; these behaviors are behind the true stories of the rich and famous. Sadly, most people don't stick. At much of anything. Their grade on life's report card is "Incomplete". Their home has books purchased but never read, how-to courses with the outside plastic wrap unbroken; projects begun but never finished. Their business' files, nooks, crannies populated with worthy ideas still-born in procrastination, strangled in disorganization. They, themselves, displays of poor discipline: intellectually uncurious, uninformed, in poor physical shape. Turns out, the rewards for good intentions are small. The rewards for unfulfilled talent just as small.

The reasons people don't stick to anything long enough to succeed with it are many and varied. Some are psychological, revealed in a book I recommend, The New Psycho- Cybernetics, which I co-authored with Dr. Maxwell Maltz. It and the prior, original edition combined have sold more than 30-million copies worldwide. Some are circumstantial; people who permit themselves and their time to be ruled by others' priorities, events as they occur - antidotes offered in my No B.S. Time Management For Entrepreneurs and No B.S. Guide To Ruthless Management of People And Profits books. Some are sinful, like sloth. Too many people lust for rewards without personal responsibility. Whatever the reasons for the losers' lack of sticktoitiveness, the winners' reality is refusal to be deterred or distracted from their objectives and aggressive pursuit of them. Successful pursuit and achievement of exceptional objectives usually involves two key elements: sticking to a course of study, acquisition of information, learning relevant methodology even if, at first, uncomfortable, foreign or difficult; sticking to self-imposed requirements for implementation of what is learned.

The WHY PEOPLE FAIL articles are provided by Dan S. Kennedy, serial entrepreneur, from-scratch multi-millionaire, speaker, consultant, coach, author of 13 books including the
No B.S. series (www.NoBSBooks.com), and editor of The No B.S. Marketing Letter. WE HAVE ARRANGED A SPECIAL FREE GIFT FROM DAN FOR YOU including a 2-Month Free Membership in Glazer-Kennedy Insider's Circle, newsletters, audio CD's and more: for information and to register, visit: www.freegiftfrom.com/davidzehala Articles ? 2008/Glazer-Kennedy Insider's Circle LLC. All rights reserved
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Negotiation for Dummies

2008-07-02T09:11:00.001-04:00

An Emotional Game

Typically, the negotiation of the purchase or sale of single family homes is a very emotional process for most people. As most of us know, emotional situations seem to defy logic. However, the process of negotiating in emotional situations is pretty scientific. Over the course of the last three or four columns I have written, we've been talking about different aspects of the negotiation process. In this column let's put it all together and conclude with this summary.

Be Likable

In the vast majority of single family home negotiations you are going to be dealing with "Ma & Pa Kettle" types who want to like who they are doing business with. In fact, it is very well-known that folks are okay with getting less or paying more if they get to deal with people that they like. In the marketing world this process is often referred to as
relationship building. A perfect example of this would be Starbucks coffee. Starbucks employees are highly encouraged to build relationships with their customers. That keeps them coming back (to pay three dollars for $.30 cup of coffee!). Of course, it's very difficult to build a relationship with somebody that you have just met. However, there is a science to being able to "connect" with people very quickly which is the amazing magic of being in "rapport" with someone.

Rapport

Definition: Reported in the process of being in sync with the person that you are communicating with. One of the best books on the subject was "Unlimited Power" written by Anthony Robbins. You should study the chapter on rapport in this book and make use of it whenever possible as it is extremely effective and seems almost magical once you start to notice it. "How to Win friends and influence people" Back before all the fancy words existed to describe how people communicate there was a simple book written called "How to Win friends and influence people". This is an incredibly powerful book that should probably be read annually just to keep its techniques in mind. It is also very powerful in the
negotiation process. The simple techniques in this book have been proven time and time again to be incredibly effective. When folks like you and they will do amazing things for you, and if they don't like you they will go out of their way to make things more difficult for you. Never forget this, never burned bridges, always leave negotiations as friendly as possible.

Humor

Humor in the negotiation process is hard to teach but it is one of the most effective tools in negotiations that I have ever seen. If you can get the other party laughing or smiling, I believe you have dramatically increased your chance of getting a successful outcome in your negotiation. People particularly love self-effacing humor, i.e. making fun of yourself in front of them. This removes an intimidation factor in the discussion and allows them to start to open up about what they really need from you. If you have the ability to use humor in negotiations, you should use it! Smile and make fun of yourself in front of them and they'll laugh and think you're just a regular Joe like them. Become Rodney Dangerfield and have a good time.

The Intimidation Factor

Even as previously mentioned, getting rapport and being likable is very important. You should never forget that the process of negotiation is and always will be a process
that includes intimidation. One of the best books on the subject is Robert Ringer's book, "Winning through Intimidation". Ringer's theory is basically that whoever is intimidated the most will earn the least. Now when you're in a negotiation or the other person likes you and is willing to give you what you want to make the deal go is that intimidation? Yes. Intimidation can be a friendly thing.

Take away selling

This is my favorite theory of the negotiation. You need me, I don't need you is probably the most powerful attitude you'llever have in the negotiation process. This should always be expressed early in the negotiation to put the other party on notice that you are in charge. This can be done in a friendlymatter of fact way. Just letting folks know that you have to beable to purchase in such a way that you can make a profit putsthem on notice that you are going to be making any below with you making a profit reinforces your position. This is afantastic negotiation strategy that should always be used. It is
best described in Jim Camps book, "Start with No".

Never be afraid to walk

Make no mistake, you will come across people who are not friendly, who won't laugh at your jokes, whom you cannot get rapport with and who will try to intimidate you into taking a deal that is not in your best interest. Alternately, you may come across friendly people who will not budge on terms that make sense. No matter what the case, if the situation will not work do not be afraid to get up and leave. This will often have a dramatic impact on the negotiation and this is effective take away selling with an exclamation point. When using this strategy however, be prepared and know that you may not get this deal back and this may be the end of it. However, if there is no future to the deal unless something dramatic happens this can be a tremendous strategy.

Negotiation versus self-esteem

In Jim Camp's book, "Start with No", he makes an assertion which I'd never seen before in a negotiation book. To succeed as a negotiator at you need to have high self-esteem. In my experience I believe this to be true. So what do you do if you don't have a high self-esteem? Pay forward to others. When you give to others and do good for others, your self-esteem will skyrocket. I believe Camp's highly unusual theory is spot on. Pay forward and become a better negotiator; sounds odd, but I believe it's true.

So how do we apply the above?
- Make sure you have a mission or a purpose going into every negotiation. You should know what you want the outcome to be in advance.
- Focus on your own behavior to maximize the techniques discussed. You cannot control the other person, but you can use your behavior to get rapport and use other techniques with them.
- Ask great questions and listen, listen, listen.
- Have no preconceived ideas going into the negotiation as to what the other parties' situation is.
- Identify the key pain point for the other party can come up with a solution to it and you will probably make a deal.
- Always negotiate only with ALL decision makers or you're just wasting your time.
- Keep things simple and practice, practice, practice.
- The easiest way to practice is to go and negotiate on a house or something that you DON'T want. You'll be amazed at how powerful this can be.
- Study and become better and you will dramatically increase your negotiation skills.

Good Luck

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Next Meeting: Thursday, July 10th, 2008: Ask The Expert Roundtables

2008-06-27T12:11:00.000-04:00

This Month Get a FRESH Perspective on Your Business and Learn How Local Pros are Tackling Today’s Biggest Real Estate Investing Challenges. Are your real estate investing strategies getting OLD? If so, come check out our Ask the Expert Roundtable Discussions from 7:30-9:00PM on July 10th! Join us on Thursday, July 10th from 7:30-9:00PM for Ask the Expert Roundtable discussions where you can gather some fresh perspectives on your business and learn how some of Central Ohio’s most success real estate investors are tackling today’s biggest real estate challenges. Our panel of local experts has agreed to hold nothing back and will take the time to answer whatever questions you have regarding their area of expertise. Here’s how it works: Each expert will be manning a large roundtable setup in the main ballroom. Each table can accommodate 10-12 people at a time keeping the workgroups small and less intimidating. Members and guests are encouraged to move around the tables to listen in, learn and expand their knowledge bases. Here’s a sample of a few of the experts expected to attend this meeting: Steve Zehala, Columbus REIA Executive Director Creative financing techniques that will allow you to do your first deal without using your own credit, your bank or own personal funds. Dave Zehala, Columbus REIA Executive Director How to jumpstart your marketing and generate high quality buyer and seller leads on a shoestring budget Randy, Helen and Ryan Conway, Solutions for Homeowners, LLC. Insider secrets to doing successful short sale deals and negotiating with the banks Rob Fill, Apobetic Business Systems How to negotiate and effectively pocket MORE CASH on every wholesale deal Joe Phelan, Phelan Properties How to build wealth and become a wildly successful landlord in one of the best buy and hold markets of all-time Dee Reller, RealEdge Resources, LLC Real estate investing demystified and how to overcome the obstacles that are preventing you from getting started Bill Moorhead, Dunmoor Homes Battle tested rehab secrets that can save you countless hours and thousands of dollars of potential profits. Danielle Lautzenheiser, The Home Selling Team How and when to use Lease-Options, RTO and land contracts in your business Dave Peters, KJB Homes LLC How to understand and navigate the Section 8 system – and make more money To Register for this meeting please visit http://www.columbusreia.com/ and fill out the box on the right hand side of this web page that says "Get 2 FREE tickets Now!"

Why Property Taxes Do Not Go Down in a Slow Market

2008-06-27T12:09:00.002-04:00

The reason why your property taxes do not DECREASE in a down real estate market Here’s a question I get all the time “If property values actually go down, how much of a tax break will I see?” The surprising answer to that question, is NONE! Here’s why. In Ohio, our tax laws are designed to protect schools and other governmental organizations during down markets the same way they are designed to “theoretically” protect homeowners during boom markets. This is accomplished through House Bill 920 in the state of Ohio. When real property undergoes a reappraisal or triennial reappraisal update, “tax reduction factors” are applied to create separate effective millage rates for Class 1 (residential) and Class 2 (non-residential) property in each school district. These effective millage rates limit school districts’ revenue growth from real property inflation to receive no more money that what the voters approved through their levies (note: new building construction is an exception to this rule and creates new revenues for the districts) The rationale for this bill was twofold: First, it protects taxpayers from undue increases in their property taxes as a result of inflationary increases in the value of their property. It’s also worth noting that this bill was enacted at a time 30 years ago when property values were increasing at a much faster rate than were income levels. Second, it keeps our local authorities in check by only mandating changes allowed by voters. Thus, it is this same law that works in reverse when property values go down. Here’s an example, provided by Joe Testa, county auditor. In the City of Columbus, the average residential home value is currently $117,700. If a reappraisal increased the districts residential value 10%, that homes value would go up to $122,870 and the tax bill would increase by 1.8% or $31.20 per year. Likewise, if reappraisal decreased that value 10% to $100, 530, the tax bill would only be reduced by the same amount, 1.8% or $31.20 per year. Using this example, you would have lost $11, 170 worth of equity and “saved” only $31.20 per year in reduced tax bill. If nothing had changed (adjusting the millage rates), it would take you 358 years to recover that loss through slightly reduced tax bills. Therefore, in both boom and bust real estate markets, tax authorities can adjust the effective millage rates either up or down, in order to ensure that the schools and social service agencies get the revenue they need to operate. Author: Dave Zehala, Co-Executive Director Columbus REIA This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.

After 10 Years, Throw It Out and Start Over

2008-06-08T01:14:00.001-04:00

Alfred Perlman, a NYC railroad executive, once wrote that "After you've done the same thing for two years, look it over carefully. After five years, look at it with suspicion. And after 10 years, throw it out and start all over"

This quote was taken in the late 1800's. Were this guy alive today in he probably would have spoken in terms of months rather than years. In light of all the change in our market, let me ask you this: Are you using some real estate investing strategies and techniques that should be "thrown out so you can start all over"?

Are you the type of entrepreneur that complains about unwelcome change or do you try to find the opportunity in it? When is the last time you implemented a new system in your business? Do you reject change in favor of the status quo?How do you see your business changing today, this week,next month, this year? What improvements are you making right now!

This month let's all take a cue from Alfred and carefully analyze our businesses. Where are we strong? Where are we weak?Where do we need to make change? Who can help us make these changes? What is the cost of not changing costing your business?
And finally, let's keep in mind that we should not view our businesses as something that is fixed in time, but as something that is in constant flux, in need of constant improvement, and should be done regularly by you.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Help! ? I Can?t Get Out Of The Box I Put Myself In!

2008-06-03T01:25:00.000-04:00

The fast food industry got the idea for drive-in windows from banks. I guess there was a McDonalds executive sitting at the bank drive-through one day who thought, "I don't think we can fit the milkshakes in these tubes, but..." Netjets, the leader in fractional jet ownership, now owned by Warren Buffet, owes its birth to the vacation time-share industry. The microwave in your kitchen was not originally intended to go there; its original manufacturer, Litton, believed no consumer would buy it and built them only for restaurants. When was the last time you heard of Litton?

What does this tell you? That successful businesses live or die by cross-industry 'borrowing' of ideas, that inspiration more often comes from outside the box than from within. Ordinary businesses stay ordinary, their owners eking out only ordinary incomes - and working too hard for them - as long as those owners foolishly and stubbornly, mentally stay in their own tiny backyard. Breakthroughs come from bringing fresh ideas found outside one's own business in and applying them in new ways. You choose to limit or expand your income by the way you reject or embrace ideas found far afield from your present modus operandi and industry norms.

The vast majority of ordinary businesspeople with ordinary incomes and never-ending ordinary complaints about how hard they work but how little they gain, about being unable to compete with the bigger and cheaper...have this in common: they get their hands on powerful information like that in this very publication and waste their time and energy in the noncreative activity of finding all the ways it can't and doesn't apply to them. Some people have such teeny, tiny, calcified, crippled imaginations they can only appreciate an example precisely matched to them - oh, that won't work for me because her place sells pizza and I sell Chinese food, and hers is in a medium sized city and I'm in a small town, and it rains a lot where she is but it's sunny here; you have to show me an example from a Chinese restaurant in a small town where it's hot and dry. Fools stay stuck in the very limiting "But My Business Is Different" box, thereby negating the value of 99% of every successful strategy, example, model they see or are presented with.

My client list is, fortunately, chock full of people who think in very opposite ways. They get rich by finding the nonobvious opportunities. Living creatively. Adapting tried-andtrue winning strategies from somewhere else to where they are. They attack each issue of my newsletter, each book I suggest to them, with yellow hi-liter and bias for action, not closed mind. They are willing, even eager to "re-imagine" their businesses while others have Bilbo Baggins' (The Hobbit) attitude: not interested in adventures - they make you late for dinner. Space here does not permit telling you such client stories, but I'd invite you to get a peek, viewing the half-hour TV show at www.In12Months.com, free of charge.

One of the most successful marketing strategies of all time is called 'gift with appointment.' Today, it brings new patients into dentists' offices, affluent investors to financial advisors' seminars, new home buyers to developments and resort communities, and is in play in hundreds of fields, helping to create millions of sales appointments every week. To the best of my knowledge, it came from a woman named Estee Lauder. I wonder how many people from how many different fields ignored it for how long, because: "Nothing having to do with selling lipsticks and perfumes could possibly apply to MY business. MY business is different."

The WHY PEOPLE FAIL articles are provided by Dan S. Kennedy, serial entrepreneur, from-scratch multi-millionaire, speaker, consultant, coach, author of 13 books including the No B.S. series (www.NoBSBooks.com), and editor of The No B.S. Marketing Letter. WE HAVE ARRANGED A SPECIAL FREE GIFT FROM DAN FOR YOU including a 2-Month Free
Membership in Glazer-Kennedy Insider's Circle, newsletters, audio CD's and more: for information and to register, visit: www.freegiftfrom.com/davidzehala
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Keynote Speaker Than Merrill Discusses Why He Prefers Wholesaling

2008-06-02T13:45:00.003-04:00

'Flip This House' cable TV star will be the Columbus REIA keynote speaker on June 5, 2008. To attend this meeting with a guest for FREE (and save $50 at the door), click here to register now: http://www.columbusreia.com/ Why Every Investor Should Get Comfortable Doing Wholesale Deals - by Than Merrill If you haven’t noticed, the real estate market has changed lately. Prices are flat in many areas and in some markets home values are actually decreasing. Sub-prime lenders are going out of business by the boatload. However, I will let you in on a secret that the ultra-wealthy don’t want you to know…there is MORE money to be made in down markets then there is in any up market. You see, in declining markets there are more buying opportunities. This is why you see the most successful investors buying when everyone else is selling. I say this with a word of caution though because you also need the proper exit strategy so you can profit from these opportunities. So this poses the question I have been asked at many of my seminars lately “what is the niche of real estate investing in today’s somewhat turbulent marketplace?” This an excellent question and one I can answer without a doubt! Wholesaling! There are many different niches you can specialize in as a real estate investor. Some investors prefer lease options, others rehabbing, and others strictly buy and hold. All niches can be extremely profitable if you educate yourself and purchase the property significantly below market value. However, in this marketplace you want a strategy where you can profit quickly without the risk of holding properties for a significant amount of time. Here are six other reasons why I feel wholesaling is the best way to invest in today’s market. Reason #1: Wholesaling Produces Quick Cash One of the great things about wholesaling properties is the deals can happen relatively quickly in contrast to longer term value added exit strategies. Anytime you get involved in developing or redeveloping properties, the timelines are much longer, and the checks can be far and few between. Wholesaling, on the other hand, generally produces revenue within three to five weeks. The exact timeline depends on the magnitude of the deal, how many parties are involved, and the nature of the financing from your end buyer. When I say three to five weeks this includes every aspect of the deal from the time you put the property under contract until the time you are cashed out by the ultimate buyer. There are wholesale deals you will be in and out of in a week, but these are the exception rather than the norm. Either way, you will not find any other niche of real estate with this short of a turn around. Reason #2: Wholesalers Have Very Little to No Risk Real estate investing always involves some level of risk. Your job as an investor is to evaluate and understand those risks and try and minimize them in any way you can. Wholesaling is the lowest risk strategy in real estate. This is one of the main reasons I encourage most new investors to start out wholesaling properties. As a wholesaler you can eliminate almost all of the risk in flipping properties if you take the proper steps to protect yourself when you go to contract with the seller. The majority of properties I put under contract have a deposit of less than $500 dollars and contingencies making my deposit refundable for a set period of time. This set period of time is when you will market the property for a higher price and secure your ultimate buyer. Make no mistake about it, these contracts are very one sided, however as an investor you must protect yourself in every possible way. For $500 dollars or less you can control a property worth hundreds of thousands of dollars for a specified period of time. You will have the ability to sell the property for more and collect the spread with virtually nothing on the line. Where else can you earn tens of thousands of dollars with little to no risk what-so-ever? Reason #3: Wholesaling Has Unlimited Income Potential Wholesaling is the number one wealth builder. The transition from working a job for pennies to achieving unlimited wealth through real estate is an obtainable goal and increasingly well documented. There is no secret that a lot of people choose to go into real estate because of the endless opportunities for enormous wealth. I know plenty of wholesalers who have made over $200,000 in their very first year with no prior real estate experience. I also know plenty of wholesalers who make over a million dollars a year consistently. Reason #4: Wholesaling Does Not Require Good Credit Having bad credit is a limiting factor when it comes to getting into the buy and hold strategies of real estate investing. However, an unworthy credit score should not deter you from wholesaling. As a wholesaler, having a good credit history can help you, but is by no means a necessity. If you have horrible credit it may cost you a few deals during the course of a year by limiting the number of viable exit strategies you have. Don't let this discourage you as there are still plenty of deals out there where credit is not needed. How many deals will you miss out on? I would estimate 10% of the wholesale deals I have structured have required someone to look at my credit. 90% of my deals could have been done by someone with a low credit score or no credit score what-so-ever. A motivated seller will never ask to see your credit score and as long as you can find a buyer before you have to close, your credit will not be needed. Any successful wholesale specialist knows they will only have to rely on the credit of their potential purchaser, not their own. Reason #5: Wholesaling Requires Minimal Capital As a wholesaler you will need to spend some money during the course of business as it will be hard to operate your office, your lead generation programs, and sales department without spending some money. However, you will not need huge cash reserves to get started as a wholesaler. The reason is because most of the time you will be using other peoples money (OPM) to operate your business. When you find a buyer before you have to close on the deal you will be using their money to fund the transaction. If you have to close on the property yourself then you will rely on either the sellers existing debt, hard money, or private money to fund the deal. Furthermore, the more creative you learn to be, the less you will have to use your own money. Reason #6: Wholesaling Can be Done Part Time. I realize many of you presently reading this article may have time constraints because of another existing career. In fact, lack of time is one of the major obstacles hindering most real estate investors. If you are working another job or own another business your time will be very limited and as a result you need to be very realistic about how many hours you can commit on a weekly business. The great thing about wholesaling is the small amount of time it requires to complete transactions. On average it should take you less than 10 hours to purchase, process, and sell a wholesale property. Most of this time involves the processing of the paperwork, clearing title, coordination of parties, and other logistical information. Wholesaling is one of the only niches where you can do volume on a part time basis. Other niches like rehabbing and being a landlord can suck enormous amounts of time out of your life. The deals will be smaller, but the amount of money you can make per hour can be astronomical. To find more wealth building articles like this one go to http://www.thanandpaul.com/

Home Prices Fall In Half of Ohio Cities

2008-05-29T01:36:00.001-04:00

According to the National Association of Realtors, South Dakota was the lone state in the union to show an increase in value late last year. In case you are wondering how Ohio fared here's a look at our median values:

Akron area - $109,000, down 1%
Canton area - $98,100, down 7.6%
Cincinnati area - $132,400, down 4.5%
Cleveland area - $118,600, down 9.4%
Columbus area- $137,200, down 1.1%
Dayton area - $106,600, down 10.8%
Toledo area - $104,000, down 0.8%
Youngstown area - $72,600, 9.3%

Author: Dave Zehala, Co-Executive Director Columbus REIA

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Check out Than Merrill & His Team in Action

2008-05-28T11:01:00.004-04:00

Meet Than Merrill, star of the A&E hit series 'Flip This House' at our next meeting on Thursday, June 5th at the Makoy Center in Hilliard, OH. To attend this meeting for FREE register at http://www.columbusreia.com/ (upper right hand corner of the site where it says "2 free tickets")

He who can walk away at ANYTIME usually wins!

2008-05-24T01:39:00.001-04:00

Beginners often make big negotiation mistakes. Often when folks get started in the real estate business they are extremely eager to go out and start making money. However, one of the biggest and most frequent mistakes that I see is that they do not properly understand the negotiation process.

In their zeal to go and meet with somebody to negotiate a deal it becomes patently obvious to the other party that this person REALLY wants this deal and is eager to get started. This is a horrific mistake. The poker equivalent to making this mistake would be to lay your cards down and let everyone else see your hand while you're in the midst of a game with bets pending!

Nothing makes me happier than when someone comes to meet me at my office who has
seen one of our properties and goes on and on about how much they loved the house!
Oftentimes it's the wife who says she loves the house and must have it! I can almost
always predict what will happen next, the husband will look at his wife after she says this like he could choke her right there on the spot. Ouch! Bingo! We all know that I have them at that point and they have very very little negotiation leverage! Do not make this mistake and lets talk about the theories of why this is so fatal.

Are you an "Intimidator or an Intimidatee?

In Robert Ringer's classic negotiation book "Winning through Intimidation" he has
an axiom which he calls the "Theory of Intimdiation" which basically states that in any financial transaction, the person who is intimidated the most will earn the least and the person who through a strong posture does the intimidating will earn the most.

Everyone can either use business intimidation to their advantage or automatically have it used against them and you should be aware of this at all times. Now, lets be clear here. Intimidation is a strong word and people can be intimidated in very "Friendly" and "Subtle" ways. In fact "Intimidating" folks "Subtly" is the best ways to use it (in my opinion). I don't want you to think of every negotiation as a knock down drag out fight, they are not. But I do want you to think in terms of Ringer's theory as I think it is accurate a very high percentage of the time.

Let's take a look at the example I stated above. When these folks come to my office and let me know immediately that they like one of our houses and have to have it (even though I have not said a word) they have unwittingy become the "intimidatee's"!

Be prepared to walk... or at least act like it!

What should these folks have done? One of the most effective ways I have ever seen to gain the upper hand from the get go in a negotiation is to have the "be prepared to walk" attitude.

This again can be demonstrated very sublty yet extermelely effecitively. If the folks who came to my office told me that they were looking at several houses and were not sure which one they were going to take they would have effectively told me that they are prepared to walk. This would've created a dramatically different scenario and would've put me in a much less favorable negotiation position. However I could have done the same to them by telling them that I have someone else who is interested and ask them why should I sell to them? We then get back to Ringer's theory of intimidation and we would have to determine who is more credible and believable.

Take away selling

There is a theory in marketing and in salesmanship called "Take away selling". In a nutshell people want things that they can't have. Amazingly, this happens all the time and is extremely powerful and puts you in a position to be the intimidator (even if that was not your intent). A dramatic yet everyday example of this is when you're in a relationship and someone ups and leaves! Wow! We've probably all experienced this when we thought we were in control or least an equivalent in a relationship and then Bam! somebody "takes it away" from us. Invariably we almost always really, really want the relationship back. This is "Take away selling"

Just say NO

In business, the negotiating equivalent of take away selling is to just say no. One of the best books written on the subject is Jim Camp's book "Start with No". This is an extremely good book and it dovetails perfectly with Ringer's intimidation theories. In essence, what this book tells us is that if we start off telling people that wer'e not sure that we can help them and that wer'e not sure we want to do business with them FROM THE GET GO, it will only make them want to do business with us that much more!

This strategy has many huge benefits. It also lets the other party know that we don't need this deal. It lets them know from the start that we are prepared to walk away and that they need to convince us that we need to do business. It puts us in a dramatically better negotiating position. Additionally, we are not showing "NEED" in the negotiation by using this strategy. I can't say enough about how effective this can be. As camp says in his book "Saying no from the outset lays the foundation for a good negotiation".

So how do we employ this?

Let me tell you just one way that we use the aforementioned theories in our business. With seller comes to meet with us at our office first and foremost they are already in a weak position because they are coming to "our" office. This is the same theory lawyers use when you go to meet with them in an expensive office setting. If the sellers refuse to meet me in my office that I'm not going to meet with them simple as that. I don't need them, they need me. Once the sellers arrive at our office we of course ask questions and get rapport with them.

After that, without any hesitation, we tell them that we will have to buy their house at a large discount or we are not going to be able to help them... and that it's okay if they leave now, then I ask point blank, "Should we continue?" Well I have never had anybody leave yet and because of that they have effectivley given me permission to make them an extremely low offer. It's truly amazing and effective.

Back to Walking ... When a negotiation is going poorly... leave!

Tip: If you ever find yourself in a negotiation in which things are going very badly or you're not happy, just get up and leave! This takes some "Kahunas" but it will have an amazing and
dramatic effect on a negotiation. You cannot underestimate the power that you walking away has on the other party. Just get out of your chair, say I don't like the way this is going and
leave. 90% of the time the other party will call you back and you've just changed the tide. This is not a technique you will not employ too frequently as it is somewhat controversial. But,
if someone is jerking your chain just get up and leave! There's plenty of fish out there!

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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A&E Flip This House Star to visit Columbus REIA!

2008-05-22T10:31:00.003-04:00

TOPIC: How to Find Killer Real Estate Deals & Create a Wholesaling Machine. Presented by Than Merrill 7:30-9:00PM. Thursday, June 5th 2008. Click here to register for FREE ==> http://www.columbusreia.com/

Columbus REIA is pleased to announce that A&E Flip This House star, Than Merrill will be our keynote speaker at our June meeting. If you are looking to jump-start your real estate investing career and want to learn from one of the nation’s most successful investors, then you will not want to miss our next meeting. If you haven’t noticed, the real estate market has changed drastically in the past 18 months. Inventories are up. Prices are down. The subprime market has imploded. Retailing is hard. So why is Than excited? Because Than has learned the “Secret” about how to make money in any market, whether it’s going up, down, or sideways. This “Secret” is what most full-time and ultra-wealthy real estate investors don’t want you to know. Than also knows that there is is MORE money to be made in down markets than there is in any market that is on the rise. There are more buying OPPORTUNITIES because the market has softened. This is why you see the most successful investors buying properties when everyone else is selling. Why should you take advice from Than? Because using these trade secrets over the past four years, Than has bought and sold over 2,750 properties with an average profit of $27,000! Here’s a sample of what Than will cover at the meeting: * Today’s top marketing strategies to find the best deals * Marketing strategies to find more buyers to get your properties sold at lightning speed * How to completely eliminate all of the risk associated with buying real estate in a changing market * How to wholesale properties so you can pick up a check for $20,000 in the next 30 days * How to build a business that will literally run itself * How to automate your business to save time * How to beat your competition to the best deals * How to stop wasting time and start making money * How to get over the fear of buying your first few deals

A Few Subtle Tricks of the Trade

2008-05-19T13:53:00.001-04:00

Here are four home selling tips as described by Jonathon Clements, real estate columnist, Wall Street Journal.

Tip #1: Looking Slim

We all know that $1.99 is barely less than $2. Yet retailers continue to use this trick - Why? Because there's ample evidence it works. "When we look at prices, we make judgments in a fraction of a second," explains Manoj Thomas, a marketing professor at Cornell University's Johnson Graduate School of Management. "We read from left to right. We anchor our judgment on the first thing we see.

For instance, if you're trying to sell your old car that you think is worth $8,000, you might set the price at $7,999. Potential buyers will read the seven first -- and have a sense the car is cheaper than it really is.

Alternatively, you might start at $8,222 and then quickly drop the price to $8,111. One study of price comparisons found that, if the left digits are the same, buyers will focus on the right-hand numbers.

At that point, buyers perceive the discount to be larger if those right numbers are declining from, say, two to one rather than from nine to eight. Even though the decline is the same in dollar terms, "people think they're getting a better deal," says one of the study's co-authors, Robin Coulter, a marketing professor at the University of Connecticut.

Tip #2: Stacking Up

As buyers check out your house, they'll have in mind a price they are willing to pay. The good news: You can influence that price. "You should list higher than you're willing to accept," says Alan Cooke, a marketing professor at the University of Florida's Warrington College of Business. "If you ask a high price, people use that as information in setting their reference price. But there's also evidence that, if you set a price that is implausibly high, the impact will be less than if you set a price
that's more reasonable."

In addition, you can affect the reference price of buyers by, for instance, telling them the price of competing properties in the neighborhood. The obvious caveat: Only pass along this information if the comparisons are in your favor.

Tip #3: Sending messages

Imagine you're selling your house, which you figure might fetch a little under $600,000. A round number, such as $595,000, will convey quality, while a precise number, like $595,385, will indicate a bargain.

The reason: We associate precise numbers with lower-priced goods. A precise number may also signal that you have given a heap of thought to the price and you aren't inclined to negotiate. Trying to settle on an asking price for your home? "If it's a new development and you're trying to give the impression of prestige, you would want to go for the round number," advises Vicki Morwitz, a marketing professor at New York University's Stern School of Business. "But if you're going for the quick sale and you want to give the impression of a bargain, you would want to go for the precise number."

Tip #4: Cutting prices

In today's housing market, many homeowners are struggling to find a buyer. Thinking of dropping your asking price? Suppose that, as in the above example, you initially asked $595,385. If you lower the price to, say, $578,495, potential buyers may perceive the price drop as relatively modest. "You want to make the computation as easy as possible," Cornell's Prof. Thomas says. "If you use digits that make computation
difficult, it will lead to a perception of a small difference."

What to do? You might specify the dollar discount -- or, alternatively, lower the price from $595,385 to maybe $580,385 or $575,385. That way, it will be easy for buyers to calculate the price drop.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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10 Fastest-Growing Real Estate Markets

2008-05-15T07:25:00.000-04:00

In case you missed it, here are the 10 Fastest-Growing Real Estate Markets as appeared on CNNMoney.com: The S&P Case/Shiller Home Price Index, which tracks 20 of the largest housing markets, showed prices plummeting by 12.7% in the 12 months ending February. That's the biggest fall since the index began tracking prices in 2000. Meanwhile, foreclosure filings more than doubled in the first three months of 2008, spiking 112%. So far this year 156,463 families have lost their homes to repossessions. Many markets won't hit bottom till late 2009 or even 2010. Pity the residents of Stockton, Calif., whose homes are likely to lose more than half of their 2006 value. But if you happen to live in Texas -- or any of the other cities below -- congratulations: The housing tornado passed you by. 1. McAllen, Texas 12-month forecast: 4% Median home price: $109,000 One year price change: 2.1% Five year price change: 23.3% Change in foreclosure rate: 23% 2. Rochester, N.Y. 12-month forecast: 2.7% Median home price: $121,000 One year price change: 3.4% Five year price change: 20.1% Change in foreclosure rate: 5% 3. Birmingham, Alabama 12-month forecast: 2.7% Median home price: $156,000 One year price change: 2.9% Five year price change: 29.4% Change in foreclosure rate: 20% 4. Syracuse, N.Y. 12-month forecast: 2.6% Median home price: $126,000 One year price change: 0.8% Five year price change: 29.5% Change in foreclosure rate: 27% 5. Buffalo/Niagara Falls, N.Y. 12-month forecast: 2.4% Median home price: $105,000 One year price change: 1.6% Five year price change: 24.5% Change in foreclosure rate: 14% 6. New Orleans, La. 12-month forecast: 2.2% Median home price: $158,000 One year price change: 1% Five year price change: 43.7% Change in foreclosure rate: 49% 7. Scranton, P.A. 12-month forecast: 2.2% Median home price: $128,000 One year price change: 7.2% Five year price change: 41.1% Change in foreclosure rate: 8% 8. Grand Rapids, Mich. 12-month forecast: 1.9% Median home price: $124,000 One year price change: -3% Five year price change: 8.3% Change in foreclosure rate: 37% 9. Baton Rouge, La. 12-month forecast: 1.9% Median home price: $170,000 One year price change: 5.7% Five year price change: 38.3% Change in foreclosure rate: 14% 10. El Paso, Texas 12-month forecast: 1.8% Median home price: $134,000 One year price change: 6.9% Five year price change: 51.9% Change in foreclosure rate: 32%

FREE IRA Wealth Creation Teletraining Call for Blog Subscribers

2008-05-09T09:51:00.004-04:00

Listen in as Columbus REIA Executive Director Dave Zehala, interviews IRA Wealth Creation Expert Walter Wofford and discusses "How to Build Tax Free Wealth in Your IRA by Investing in Real Estate"

To attend this 2-day workshop on May 10th and May 11th click here: http://www.columbusreia.com/node/77

Another Knee-Jerk Reaction From Our Politicians

2008-05-09T09:22:00.000-04:00

I received a disturbing email recently from John Grant, Executive Director, National Association of Responsible Home Rebuilders and Investors (NARHRI). For those of you not familiar with this group, NARHRI is a Washington, D.C.-based association representing independent real estate investors, real estate investing clubs, real estate speakers, and corporations with interests in real estate investing. You should think of NAHRI as an industry watch dog that covers our back sides.

Here's an excerpt from John's email regarding the potential for federal legislation governing "foreclosure rescue scams": "Wisconsin Senator Herb Kohl (Democrat) has announced plans to introduce legislation aimed at curbing the rise of foreclosure rescue scams. The bill is still being drafted and is based on a few state proposals and existing Minnesota law. Besides what we fully expect the measure to contain (ban on leaseback to owner and upfront foreclosure consultant fees), the measure is likely to contain some or all of the following provisions: Ban on all "Subject To" transactions; Limitations on investors ability to purchase or take any equity interest in a home in default; Ban on all advertising related to "Saving Homes From Foreclosure"; plus restrictions on real estate seminars."

According to John, The National Association of Realtors has also offered the 2004 Minnesota law governing real estate investors as an acceptable model for the entire nation. This is no surprise since the Realtors are exempt from the law (by the way, since passing this state law in Minnesota, foreclosures have increased 5-fold...hmm, why will this work at the national level?) NARHRI intends to offer sample legislation from the Commonwealth of Virginia, which has the support of the local realtors, lenders, consumer groups, and recently passed the House unanimously.

This is yet another example of a knee-jerk reaction from our elected officials to gain favor with the media, make the real estate professionals look like the "bad guys", and absolve all consumers that made BAD CHOICES. What's next banning real estate investing all together? To follow this story check out the NAHRI website at www.narhri.org.

Author: Dave zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Most people Prefer a Good Excuse to a Good Opportunity

2008-04-25T08:16:00.000-04:00

The other night, while I was interviewing Rich Dad Advisor, Blair Singer, on the GOLD/PLATINUM Tele-Coaching call, we got to talking about why so many people in this business crash and burn. Blair skillfully honed in on one of the major problems and that was most investors' failure to get themselves a coach - an absolute necessity when you are first starting out. However, coaching is just part of the picture. If you were to poll 100 people on why they decided to get out of real estate, your answers would sound something like this: "I have terrible credit and there's no way I can get financing" or "I'm really swamped in my corporate JOB right now and couldn't find the time to get started" or "I'm dead broke and couldn't afford to get training" or "The market is terrible, I'm going to wait for it to rebound" or "I can't make real estate work where I live' Unfortunately, the typical responses that I just described above are NOT legitimate obstacles, they are EXCUSES. And the problem with some excuses is that occasionally they will have a foundation in truth in them. Let's face it...sometimes you will get busy... sometimes your cash reserves will hit rock bottom...sometimes you will need to fine tune your strategies if market conditions change... that's how things work. However, I'm here to tell you that if you start buying into your own excuses you are headed for trouble, because eventually they will become your reality making it impossible for you to ever escape. If there is one trait that I have witnessed over the years with my wealthy friends, colleagues and clients is that they rarely make excuses - these people got rich by doing all sorts of things. But not excuses. One of my mentors, Dan Kennedy, once said that there are only three jobs worth paying someone minimum wage for: 1) People that recite lists of reasons why something won't work; 2) People that recite lists of reasons why something can't be done; and 3) People that fear change and make excuses for maintaining the status quo. It's not easy breaking out of the "excuses norm", but if you manage to do it, I'm confident you will find tons of "good opportunity' waiting on the other side of the door. OK, enough rah, rah. This month, NO EXCUSES. Let's all go out, take action, focus on solutions, and do something financially or professionally rewarding. Author: Dave Zehala, Co-Executive Director Columbus REIA This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.

Rapport ? The Red Headed Step Child of Negotiation

2008-04-17T13:12:00.001-04:00

When I was a kid....
Back in the day, when I was just a youngster, I can distinctly recall that many negotiations seemed to be a battle of wills of who could intimidate the other person the most. It sometimes could be a somewhat unsavory scene on the car lot or at Sears to watch the salespeople get abused by the buyers or vice versa depending on the strength of the personality of the negotiator or their negotiation skills. The problem with this model was that that there were a huge percentage of people who were not interested in being involved in a confrontational negotiation process. Over the years things have started to swing in the other direction.

New & Old No Haggling Zone Businesses Models:
A perfect example is Saturn car dealers who take great pride in advertising that there is no negotiation at their lots, IE a "No Haggling Zone" and you come "Be their Friend" (and pay full retail!). Their motto is that they advertise the "lowest price" from the start so you can walk in feeling confident knowing you will not have to negotiate. (I wish I could pull this off on my rentals). They are catering to the folks who do not want to be involved in a confrontational process or just don't like negotiating. Then there is the traditional Real Estate Broker/Realtor model which tries to remove any aspect of face to face negotiation between the principals in the deal, thereby handcuffing those of us who realize the value of face to face negotiations. I don't believe the above business models favor the consumer and I've got news for you...

Zehala negotiation theorem:
Your ability to negotiate effectively will probably mean more to your financial well being, your financial health, and your success in life than any other skill you possess. Like it or not, being able to negotiate effectively is a tremendous asset that should be continually improved. However...

Things Change... & So Do Negotiation Tactics:
In many of the business circles that we travel in there is adage that says, "Don't get too excited about what you're doing today as it is highly probable that you WON'T be doing it 2 years from now". Whoa. Guess what? I have found this to be uncannily accurate. This same principal applies to negotiation strategies. What we used to do has changed and because of the prevalence of the above said business and negotiation models, a new element must be considered when negotiating, "Does the Customer LIKE Me?" If they don't like you, then you probably have a BIG problem. In our case I am talking about sellers of houses that we want to buy at a discount or on terms. So what can we do to ensure that they like us?

Believe it or not, getting folks to like you is a science... The Science of Rapport...
As you have probably heard me say on many occasions before, "Folks who LIKE you will do amazing things for you (like take big discounts or give you great terms)", particularly if you are trying to get some sort of odd ball owner financing done. The goods news is that getting folks to like you is an easily learnable skill that has been studied in great detail and I'll bet you have a book on your shelf right now that gives you all you will need to know about rapport. The best science that I have seen on the subject of rapport falls under the study of NLP (Neuro Linguistic Programming) and one of the best books to summarize how to use it is Anthony Robbins book "Unlimited Power", and I'll bet you have this book in your house right now. The chapter entitled "The Magic of Rapport" will give you more insight on how to use this wonderful technique that will put you light years ahead of your competition.

OK, Steve I don't have this book, you tell me how rapport works...
This NLP sounds complicated right? Well it's just the study of language, communication and personal change. As an example- successful people who are known to get rapport quickly are studied and the results are made known so that normal folks like us can do the same thing. I know it sounds like a bunch of "gobbledygook" but this stuff works guys, I've been using it for years.

Let's boil it down.....
In a nutshell, the process of getting rapport boils down to matching and mirroring the speed, language, and mannerisms of the person you are dealing with. If they talk fast, you talk fast. If they cross their arms, you cross your arms. If they speed up you do the same. If they have certain words they use when talking you use them back. After doing this for a while you will start to notice that once rapport has been established they will start to follow YOUR lead. You will go for a drink of your coffee and they will do the same. It's amazing to see in action. Don't think this works? Look at folks as you are out and about and you will see rapport in action all the time. Watch folks who are clearly getting along and you will see they are doing what we describe above, those who are not getting along will be out of synch. This technique can dramatically improve your ability to communicate with folks which will result in better everything. I don't really do it justice here but read up on it and you will thank me.

The Takeaway:
- In years gone by, much negotiating was a battle of who could be more aggressive, but as time has progressed many business models employ the use of a happy, be your friend
"No Haggling Zone" where you can go do business without having to negotiate.
- Zehala says your negotiating prowess will probably mean more to your financial future than any other skill you possess.
- As the world changes, so must your negotiation techniques change to be effective. People want to like who they do business with and the skill of getting folks to like you can be learned through the NLP concept of rapport.
- Using rapport when negotiating can have a dramatic impact on results and outcome.
- There are numerous outstanding books written on the subject including: Anthony Robbins, "Unlimited Power", Steve Andreas, "NLP: The New Technology of Achievement", Michael Brooks, "The Power of Business Rapport"
- The skill of creating "Rapport" is a gift that keeps on giving, you be well served by adding this skill to your toolbox!

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Foreclosed homes turn into haven for thieves

2008-04-16T10:31:00.000-04:00

Foreclosed homes turn into haven for thieves Plumbing, pipes vandalized not long after owners leave Wednesday, April 16, 2008 3:19 AM By Jeb Phillips THE COLUMBUS DISPATCH As soon as the former owners leave the homes -- sometimes even before foreclosure proceedings start -- the thieves get to work. They want the copper in the plumbing and the copper coil from the furnace, to sell to scrap yards. Todd Goldman, a real-estate investor, said someone ripped copper out of two of his houses in North Linden. Dee Reller, an investor who works regularly with foreclosed homes, lost it in a building in the Hilltop. And certainly, when foreclosure notices appear in newspapers, the homes are hit, said Jeff Jonas, a real-estate agent with Keller Williams Capital Partners Realty. "They are extremely organized," he said of the thieves. "It doesn't matter what area. It's happening everywhere." Other thefts seem a matter of opportunity, said Dave Zehala, executive director of the Columbus Real Estate Investors Association. Thieves see a vacant house, or one with a "For Sale" sign, as a target. Plumbers see the results, because they are hired to fix the damage. At least once a week, someone calls about a foreclosed home, ransacked for copper, needing repair, said Ben Snow of Calhoun Plumbing on the South Side. The foreclosures keep coming, which means more vacancies, which mean more thefts. March was the worst month in memory for Franklin County, with 906 foreclosures. January had 904. Through the first three months of this year, 2,639 foreclosures were counted, up from 2,460 in the same period last year. That was up from 2,362 in the first three months of 2006 and 1,647 in the first three months of 2005, according to the Franklin County Common Pleas clerk of courts office. The average foreclosed home stays vacant for five months nationwide, said Tom Popik, who designed a national survey for Campbell Communications in Washington, D.C. During that five months, half of those homes sustain some kind of damage. Some, he said, is at the hands of angry owners who damage their homes when they lose them to foreclosure. Other damage, possibly the largest percentage, is caused by weather or deterioration. But plenty is the result of thieves. Because of the way foreclosures work in Ohio, the average time of vacancy is closer to nine months, Reller said, so damage might be worse here than in other states. The cost to replace just the basement pipes, the exposed ones that are the easiest to steal, can start at $1,500, said David Specht, president of the Waterworks, a local plumbing business. If the thieves are "in a real destructive mode," he said, that price can double.If the water hasn't been turned off, floors are ruined, and mold quickly sets in. A Columbus law enacted last summer requires scrap yards to collect information from the people who sell them metal and make daily reports to police. But the electronic monitoring that would make tracking that information easy won't be in place until at least late summer, said City Councilman Andrew J. Ginther, who wrote the law. And a new Senate bill might pre-empt the city law, making the electronic monitoring optional. So for now, real-estate agents and investors are stuck. Some board up the houses, which angers the neighbors. Most try to make friends with the neighbors, hoping they will keep watch on the property. Some have even tried paying the neighbors to watch, Zahala said. But the thefts continue. "It's a significant problem," he said. j eb.phillips@dispatch.com

Retire Rich, Thin, Sexy and Tax-Free By Investing in Real Estate Through Your IRA

2008-04-16T10:15:00.002-04:00

Next Monthly Meeting: Thursday, May 1st Presented by Walter Wofford, 7:30-9:00PM Columbus REIA is pleased to announce that Walter Wofford will be our keynote speaker at our May meeting. If you want to learn how to Super Charge your own IRA and become a Deal Making IRA Specialist . . . listen up! In just 3 short years, Walter Wofford has successfully completed over 100 IRA transactions for his own IRA as well as other’s IRA, and has helped many Individuals learn how to do it for themselves. This presentation is for serious students who want to learn how to take charge of their personal retirement funds. The focus will be on investment strategies in the Real Estate arena using IRAs and other Qualified Plans such as 401K. In this presentation, Walter will discuss how you can:

Learn all of the IRS’s Rules of the Road including contribution limitations, qualified parties, prohibited transactions, investment options, distribution and inheritance rules
Create your personal IRA transaction blueprint to fully fund your retirement . . before retirement age.
Form and fund your own Private Entity to complete your IRA transactions. This Private Entity will allow you to initiate transactions at lightening speed and out of view of others.
Learn how to Stretch Your IRA to insure your heirs have tax free income for their lives after they inherit.
Parlay your new “Expert” status into Dollars in your local Market. Very few can claim and deserve this status.
Understand completely Unrelated Business Income Tax (UBIT) and how to avoid it. . . or not.
Create your own Private Bank yielding phenomenal returns for your IRA orothers.
Build profitable business relationships with others at the event. This may be the most important life changing benefit.
Fully comprehend all of the important documents needed to open and maintain the various IRA accounts including Traditional, Roth, Coverdell, and Health Savings Accounts.

Rapport - The ?Science? of People Being In Sync

2008-03-31T01:17:00.001-04:00

Rapport- The "Science" of People Being In Sync.

The same holds true when negotiating to purchase or sell property. Step one is to establish a rapport. In addition to using the techniques of How to Win friends and Influence People" there is a more scientific approach in creating rapport which is defined as follows:

"Rapport is one of the most important features or characteristics of unconscious human interaction. It is commonality of perspective, being in "sync," being on the same "wavelength" as the person with whom you are talking. There are a number of techniques that are supposed to be beneficial in building rapport such as: matching your body language (ie, posture, gesture, and so forth); maintaining eye contact; and matching breathing rhythm. Some of these techniques are explored in neuro-linguistic programming."

How do we establish rapport? Is it difficult and time-consuming? Guess what? Establishing rapport is a learnable skill just like negotiation. I'm out of room in this month's column to delve any deeper into it. So stay tuned to next month's column
and I will share with you the inside secrets of establishing rapport to make fantastic deals. Folks will be so happy to deal with you that they will give testimonials about how glad they were to sell you their house at half price!

The Takeaway:
- Most Americans are poor negotiators. In my opinion, men
dramatically overestimate their negotiation skills.
- With practice, anyone can become a good negotiator.
- People want to do business with people they like. Learning
to use strategies to accommodate this concept will help you
become hugely successful.
- Start with "How to Win friends and Influence People" and
you will be ahead of 80% of everyone else.
- Rapport is the "science" of people being in sync with you
and will give you a huge advantage!
- See you next month!

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Twelve Street Smart Reasons NOT to Get Your Rent On the First

2008-03-29T01:58:00.001-04:00

Twelve Street Smart Reasons NOT to Get Your Rent On the First
by Louis Brown, Columbus REIA Speaker on Thursday, April 3rd, 2008

Click here to attend this meeting for FREE===> www.tellreia.com/offer

When I started in this buy/hold/rent/get rich business over twenty years ago, I collected rent like everyone else did...on the first of the month. Rent was due on the first, late on the fifth. After a few years, I started to realize that this did not make a lot of sense. Some residents had lots of demands on their first of the month check. I also realized I was not depending on the rent checks to be in the bank on the first in order to pay the mortgages. This meant I was fronting the money for the mortgage payment instead of the property paying for itself.

From a landlord's viewpoint, if someone's rental agreement expired on the first, the tenant rarely moved before then. As most residents had to be out of their existing residence by the first, most did not want to take the chance that my resident who was moving would be out by the first or that the unit would be ready. Usually this resulted in losing some or all of a month's rent in the interim while it was made ready and a new resident was found or the first of the month came around again.

After this happened to me several times, I started to analyze this first of the month business and I came up with a way to make life easier for me and for my tenants who have too many demands on that first of the month check. What I came up with was having the rent due on the 25th of the month. My rental month runs from the 25th to the 25th. This gives me five to six days to get the rent in the bank before the mortgage payment is due. That is just the beginning of the benefits of collecting rent on the 25th. Following is a list of twelve GREAT reasons not to get paid on the first:

1. Get paid from the middle of the month check, not the first of the month check when everything else is due, too. This means less competition for the money available to pay bills.

2. Get 5 to 6 extra days to market the unit after a move-out, thereby catching someone who hasn't made a decision or has something go wrong with the deal they made with someone else...or their new unit won't be ready and they have to move NOW.

3. Get 5 to 6 days extra to make the unit ready for the tenant who has to be out of their present rental by the 1st.

4. Pick up at least 5 extra days' rent. If your new tenant wants to move in on the 1st, you say " All our contracts begin on the 25th" and lead them gently into the realization that they pay not only for the time they live in the unit but for the time the landlord has the property off the market waiting for them to move in...and if they do not wish to pay, then they run the risk of someone more acceptable coming along and putting in an application to move in that very day!

5. Get a tighter time frame to negotiate begin date of rental agreements. The applicant always wants to start on the very latest date possible to save money while the landlord wants to begin the agreement as quickly as possible to make more money or stop the loss of money due to vacancy as fast as possible. For example: the landlord makes a statement like "there's always overlap in this business" puts the tenant in the right frame of mind to negotiate days. The landlord might say " today's the first. You want to move in on the first of next month, but all our contracts begin on the 25th. The owners won't allow me to take the property off the market and lose 25 days. Maybe we can meet somewhere in the middle. Let's start on the 10th. That will give you plenty of time to move small things, get utilities on, etc. Is that fair?" Effectively you've negotiated down to one-third of the month versus what they wanted.

6. Get more "float" on your money. Most mortgage payments are due on the first, but are not considered late until after the 15th. If you collect your rent on the 25th, presuming you make your mortgage payments from rents collected, that gives you 5 to 20 days of "float" on your money. If you do this, though, always have back-up plan like a credit line with a checkbook.

7. Find out sooner that you have a collection problem. When rents are due on the 25th, you'll know by the 26th that "Houston...we have a problem." Now you'll have 5-6 days to arrange other funds to make your mortgage payment if it will take that long to collect.

8. Get to the courthouse ahead of everyone else. I teach that you should begin your eviction proceedings as quickly as possible, but no later than five days after the rent is due. This gives you time for any state required notice period and wait/see if their promise to pay happens before you file. On the day when everyone else is just collecting and discovering problems, you are at the courthouse filing your eviction proceedings. The line is pretty short.

9. Get your eviction lawsuit served quicker. When you file on the first, the Sheriff or Marshall is not as busy and can get your proceeding served quicker because they are not as overloaded.

10. Get to the judge quicker. Since you got your eviction served early, the court calendar is not as crowded, so, in many cases, you'll get on the calendar quicker and the court may not have as many cases if you get that far.

11. Get them out quicker. If you have to go all the way to a set out of the tenant from the property, it may work in your favor that the Sheriff's or Marshall's schedule is not as crowded, thereby speeding up the timing of your actual set out. Because you are 5-6 days ahead of the landlord herd handling their collection problems by dispossessory or eviction action, you are actually ahead of the time of month when there are lots of evictions scheduled to be handled by the appropriate law enforcement agency.

12. Get your property back to market ahead of everyone else. It may work out that you'll have your property back and ready to rent sooner than others who wait until the 1st to collect rent because of the extra time you give yourself by collecting rent on the 25th. You therefore lessen the competition you'll have in renting your unit.
So now you know why I am sold on the idea of collecting rent on or before the 25th. Some folks ask, "hey, if the 25th is good, the 15th could be better. " Maybe that would work better for you. We collect all rents on the 25th because that's what I started over 16 years ago. I haven't found a good reason to change that date. Yet another reason why we collect and proceed on rental collections between the 25th and the 1st is that our loan collections are due on the 1st. Private loans, Agreement for Deeds (Land Contract), owner financing mortgages, small loans, etc. are all due on the 1st so it balances out the work load of collections and allows us to focus. Let me know if this works for you.Twelve Street Smart Reasons NOT to Get Your Rent On the First
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This Tool Will Help You Put Together Your Short Sale Packages and Evaluate Neighborhoods

2008-03-27T01:39:00.001-04:00

Last week the Columbus Dispatch featured a great new tool available in Franklin County called CrimeReports.com. This tool takes the publically available police report data from the Columbus Division of Police and overlays it on a map. Here are two reasons why you should take the time to check this tool out.

First of all, it will help you work your short sales. You should get in the practice of submitting both crime report maps and sex offender maps as part of your short sale packages. This will help you build a better business case for the lender to take a discount on the property, especially if the subject property is in a tough area.

Second, it will help you better evaluate neighborhoods. You should take a look at crime stats and other factors that can hurt the value of your rentals or impair your ability to find quality tenant buyers. Adding this tool to your checklist will help you make better "buy & hold" decisions.will help you build a better business case for the lender to take a discount on the property, especially if the subject property is in a tough area.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Holy Smoke - Some Old Bood From 1937 Can Help Me?

2008-03-23T01:42:00.001-04:00

Let me tell you a secret; this book ("How to Win Friends and Influence People") really works. You might be thinking, "Steve, how would I apply this strategy to a process that is normally considered adversarial?" Guess what? People like to deal with people that they like. In fact, you would probably be shocked and amazed to fi nd how easy it is to negotiate when people like you. We have had thousands and thousands of dollars discounted off properties we purchased because people said they like the way we do business and they liked us.

Believe it or not, people have chosen to sell to us for less money than they could have gotten from somebody else just because they liked us.

Now, is this theory going to work when General Motors is negotiating with the labor
unions? It probably will not. But then again, it certainly won't hurt. But I'm here to
tell you that you will get much farther when negotiating if you make an effort to be nice and likable!

Smile + Fun = Make Thousands?

Smile and get the other person to smile, andall sorts of magical things will happen. I really enjoy the process of negotiation and I am able to get the folks with whom I'm negotiating to have fun with me in the process.

For example, when it's my turn with the customer service representative, I make a joke such as "Holy smoke, they must be paying you $50 an hour to deal with folks like that right?" This usually warrants a smile. I then check their name tag and call them by their name to compliment them and tell them that they must have the patience of Job to do their job.

I then get them talking about themselves, smiling and joking with them. Before long I have my money back on an item purchased four months ago that is way outside the 15 day return period. Why? Because they like me; I gave them a smile and some attention. It's almost a challenge for me to see how long I can delay a return without having a problem. The truth is that I almost never do!

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Creating Your Own 24/7 Money Machine

2008-03-20T13:07:00.002-04:00

Columbus REIA Monthly Meeting: Thursday, April 3rd, 7:30-9:00PM KEYNOTE SPEAKER: Lou Brown (O.P.H.P. 1.5 Hrs Management) Columbus REIA is pleased to announce that Louis Brown will be our keynote speaker at our April meeting. Unless you're making big bucks in Real Estate, you've probably never heard of Lou. But ask any pro in town and they will tell you that Lou Brown by far is one of the best and brightest real estate investors in the business. Lou has been buying, selling and renting out real estate for 30 years. He’s a self-made multi-millionaire. He has trained folks in all 50 states and ten foreign countries. He is also regularly quoted in top publications including "The Wall Street Journal" and "Smart Money" magazine. If you're sick and tired of the daily grind and feel it's time to take control of your life and make some real money for a change, then you will not want to miss Lou’s presentation. Lou will teach you that it's time to stop clipping coupons and worrying about your finances. It's time for you to discover the secret to creating wealth by following 7 simple steps and letting the money find you. These steps include: 1) Buying your properties right; 2) Creating enough cash flow so you can quit your J-O-B; 3) Sheltering your wealth from the tax man; 4) Creating profit centers by finding extra money in every transaction (nobody teaches this); 5) Accelerating your retirement income; and 6) Protecting your assets like Fort Knox. Lou will show you how to: * Squeeze-out maximum cash flow from your properties and make more money working part time from home than you do from your full-time job * Learn a system for powerful negotiating so simple… a 4th grader can come to terms on a deal faster than a New York Lawyer * Get renters to happily improve your properties out of their own pockets * Buy properties from the bank at a steep discount and turn lightning fast profits with minimal effort * Stop driving around town looking for deals like an ambulance chaser and get motivated sellers to come straight to you PLUS..Pre-Register this Month and Guests can come for FREE!!! Click here to register===> Register NOW

Now Let's Apply This Concept to Real Estate Investing.

2008-03-19T01:06:00.001-04:00

Most investors start out by tapping into one or two mediums at best - usually print ads and/or bandit signs. That's OK at first, but before they know it, they have quickly become a one-trick marketing pony relying too heavily on these 1-2 lead sources.

The trouble starts when one or both mediums don't deliver that month. Stay in the business long enough and it will happen to you. If this is all the marketing you're doing you have nothing else to fall back on. That month you come up short.

So, this month let's all take a page from the pros. Start diversifying your marketing and try some different things. Consider some low cost lead generation alternatives like post-it-notes, door hangers, calling "for rent" ads, Pacer for bankruptcy 13 dismissals, eviction court, etc.

Pressed for time? Then consider using a Central Ohio lead generation service provider like Fullserviceleads.com (available to our Platinum members for free). Here's a breakdown of a well diversifi ed media plan we were testing last Spring: TV (51%), Direct Mail (22%), Outdoor (17%), Online (5%), Newspaper (5%).

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Negotiation Is Where the Rubber Hits the Road

2008-03-15T01:32:00.000-04:00

The USA - Home of the Weakest Negotiators in the World?

For some reason, there are lots of folks in this country who do not like to
negotiate. If you have been fortunate enough to travel outside of the United
States, then you know that in most cultures EVERYTHING is negotiable.

In fact, in most places around the world, haggling is a way of life. I'm not sure why in this country many of us are afraid to negotiate, but I don't think it's a good thing. If you make an effort to become a good negotiator, you will be able to accomplish some amazing things. I believe that almost everything that we do in life involves negotiation, so it's a good idea to become good at it. Make no mistake - negotiation is a learned skill. Anyone can become good at it if they make the effort. So where do we begin?

You're Only About 7380 Books Away From Expertise!

The number of books about negotiation is astounding. A search at Amazon.com yields 7380 books! Holy Toledo! You couldn't read all those books if you spent the rest your life trying. So here's my take on negotiation.

First, there are many different types of negotiations. The strategies and skills used to buy property from owners are not the same strategies that are used when General Motors is trying to hash out a billion-dollar deal with union negotiators. The strategies that I use to negotiate with folks who are trying to sell small pieces of property would get me laughed right out of the room in a high-powered business negotiation.

So step one is to identify the situation and determine which negotiation strategy will be most effective.

People Want to do Business with People They Like.

First and foremost, people want to deal with folks they like! I am shocked and amazed at how few people recognize this important concept. Time and time again I stand in customer service lines and watch people negotiate the return of a product only to find themselves in a shouting match with the customer service representative. I can see in the eyes of the representative how much they would like to grab that person
and choke them.

When it's my turn, I immediately go into "sugar" mode and start employing the techniques detailed in the all-time classic book "How to Win Friends and Influence People" by Dale Carnegie. This book should be standard teaching in every primary school. I know many people that would greatly benefit from this book - if you know what I mean.

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of
the Columbus Real Estate Investors' Association.
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The Importance of Mixing Up Your Marketing

2008-03-11T02:00:00.000-04:00

This month I'd like to talk about marketing and the importance of what I call "mixing it up". A great starting point for this discussion would be to study what the big boys do.

In a recent issue of Advertising Age Magazine, the editors ranked the top 50 national advertisers based on spending by media outlet (not including direct mail).

The top 5 advertisers included: 1) Proctor & Gamble; 2) General Motors; 3) Time Warner; 4) Verizon; and 5) AT&T.

In the case of General Motors:

They reported a $4.6B ad budget and they spent it on the following: TV (37%), Newspapers (13%), Magazines (11%), Radio (3%), Online (3%) and Outdoor (2%).

Here's what the Realtors do:

They spent $2.7B on advertising using these outlets: TV (11%), Newspapers (65%), Magazines (9%), Radio (4%), Online (2.5%) and Outdoor (7%).

Other than deep pockets, what do these advertisers have in common, and what can we learn from this?

First of all, they understand that consumers react differently based on the media. Consumers are finicky. The consumer that views a direct mail piece as offensive might
call the next day off a TV ad. These advertisers view using multiple media outlets as a way to maximize overall response.

Second, they understand the power of advertising reach using multiple media. They know that pounding 6 outlets versus 1 or 2 will significantly increase the number of unique households exposed to their marketing message. Think of it as fishing in a bigger pond.

And, finally these advertisers wouldn't dream of putting all of their eggs in one or two media baskets. They know through extensive testing that diversification is the only way to achieve a more predictable and steady stream of leads flowing into the
sales pipeline.

They are also smart enough to guard themselves against blind diversification for its own sake. They diversify into high-return, high-quality media that consistently delivers a handsome and measurable marketing ROI (another topic).

Think about how you invest your own money. Would you put 100% of your hard-earned savings into one stock? No. How about 100% of this money into one investment property? No, you would diversify or "mix it up".

Author: Dave Zehala, Co-Executive Director Columbus REIA

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FACTOIDS: AND YOU THOUGHT YOUR RENT WAS TOO LOW!

2008-03-07T01:53:00.001-05:00

According to REIS Inc, the average US rent is $975. The 10 least-expensive rental markets include:

-Wichita, KS $470
-Chattanooga, TN $580
-Oklahoma City, OK $490
-Greenville, SC $580
-Tulsa, OK $520
-Lexington, KY $600
-Knoxville, TN $560
-Louisville, KY $600
-Dayton, OH: $570
-Little Rock, AK $600

Author: Dave Zehala, Co-Executive Director Columbus REIA

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ZILOW IS IMPROVING THEIR OHIO COVERAGE AREAS

2008-03-03T01:52:00.001-05:00

Zillow, is a real estate services company that allows investors to run online comparables for FREE! It is now claiming that it has expanded its coverage area to include 87% of residential listings in Ohio. Check out their website at www.zillow.com.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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10 QUESTIONS TO ASK A REMODELING CONTRACTOR

2008-02-27T11:38:00.001-05:00

By Larry Goins, Columbus REIA Guest Speaker on Thursday, March 6th Attend for FREE by pre-registering at www.tellreia.com/offer 1. Are you licensed? Most states require contractors, even sub-contractors to be licensed. Make sure your contractor is properly licensed. Anyone can say they are licensed. Make the contractor prove it by either showing you the license or giving you a copy of it. Remember to check the expiration date. Being licensed is the law. If a contractor cannot produce a valid license, DO NOT HIRE HIM! You can check the contractor’s current licensing status with your states Secretary of State. 2. Do you carry general liability insurance? Make sure your contractor carries general liability insurance. This type of insurance protects your property in case of damage caused by the contractor and/or his employees. The insurance company will pay for the cost of replacing, and/or repairing any damage that occurs. Anyone can say they are insured. Make the contractor prove it by having a certificate of insurance. 3. Do you carry workers’ compensation insurance? Make sure your contractor carries workers’ compensation insurance. It protects you from liability if a worker is injured while on your property. Be aware that if the contractor does not carry workers’ compensation coverage, you may be liable for any injuries suffered by the contractor, or any of his employees on your property. If the contractor is a one-man operation, he can be exempt from having to carry workers’ compensation insurance. If he is doing so legally, he can provide you with a copy of his Construction Industry Certificate of Exemption from Workers’ Compensation. This is very risky for you though. If he shows up with a helper and the helper gets hurt, with no workers’ compensation insurance, you may have to pay the medical bills. If the uninsured contractor is sloppy about verifying his sub-contractor’s workers’ compensation insurance and the sub-contractor gets hurt, again you may have to pay the medical bills. In short, it is much safer to deal with a fully insured contractor. 4. Do you offer Financing? Many Contractors are lender-approved contractors. They have been approved and investigated by lenders as being financially sound, maintaining satisfactory relationships with suppliers, satisfactory credit and no outstanding complaints at the Better Business Bureau. 5. Are you a member of NARI or NAHB? NARI stands for the National Association of the Remodeling Industry and NAHB stands for the National Association of Home Builders. It’s always a good idea to consider hiring a NARI or NAHB contractor. In most cases, both organizations only attract conscientious contractors interested in bettering the industry and in weeding out unprofessional contractors. In order to become a member, the contractor’s background and references are thoroughly investigated. 6. Will you pull all the required building permits? Make sure your contractor pulls all required permits. This is very important. When a contractor pulls the required building permits, you know things will be done to “code." Also, many homeowners insurance policies require pulling a permit on any major remodeling to keep your home properly covered. Not all contractors will do this. Many prefer not to pull permits because of the time involved and the “hassle” with the inspectors. Some contractors may ask you to get the permits. This could be a warning sign that they are not able to pull the permit because they are either unlicensed or the work is outside of their license. A reputable contractor will permit every job where a permit is required. 7. Do you guarantee your work? Your contractor should guarantee his work for at least one year from date of completion. They should also include any warranties from the material used if applicable. 8. Who will be in charge of the job? Make sure the contractor or his foreman is on the job whenever work is being performed-especially if sub-contractors will be used. The responsible party must be familiar with every aspect of your project. You cannot be worried about what is going on when you are not there. 9. Will you provide me with written references? A good contractor will be happy to provide you with references. You should look for a well-established contractor who can give you several customer references from the last 6 months to one year. Ask for the name of the contractor’s accountant or banker. You want to ensure the contractor is financially sound and will not be declaring bankruptcy in the middle of your project. 10. How do you handle “dirty work”? Construction is dusty and dirty! It gets everywhere, especially if any sanding is being done. Make sure the contractor will make an honest effort to keep the dust contained, or notify you when the heavy dust generating operations will take place so you can place sheets over furniture or move sensitive belongings. Make sure the contractor agrees to sweep up and place all construction debris in a predetermined place or refuse container at the end of every day. This blog entry reflects the opinion of the author, and not necessarily the opinion of the Columbus Real Estate Investors Association and its members.

TAKE A LOOK FOR THE OPPORTUNITY IN DOING THE OPPOSITE.

2008-02-27T01:03:00.001-05:00

Right now, and for the foreseeable future, the real estate market will be portrayed in this country to be bad. Once the media gets their teeth in that apple they will not let go and they will play up this misery card for as long as they can. Remember misery sells papers and news. So this is an extraordinary opportunity to do the opposite of what everybody else is doing and buy as many quality keepers at huge discounts as we can before the media changes their tune. I can tell you from the people we are negotiating with that they are buying into this media frenzy and you can bet we are going to do the opposite of what everybody else is doing.

The only thing constant is change Time and time again we have found a business model or some way of making money that was opposite to what everybody else was doing in real estate only to find out at the market has changed and I'm going to have to use a new strategy. Around years 2000-2002 we would buy properties fix them and sell them to homeowners and carry back a second mortgage and hope to get paid on that second mortgage when they refinanced. We would make some profit when we sold it and we would get some gravy when they refinanced. Worked great, but guess what? A whole bunch of those lenders went out of business. Sound familiar? Truthfully, after all these lenders went out of business back then I never thought we would see subprime markets again, but they came back with a vengeance. Guess what? A few years from now some form of subprime lending will probably be back in some way, shape or form. Mark my words.

Other examples of doing the opposite that are extremely effective: Instead of calling the for sale classifieds, you can call the for rent classifieds and asked them if they want to sell. You have now entered into a realm where you have no competition, right? How about putting your house for sale in the rental section? The list is endless but you need to keep thinking this way. Groupthink is not the way to make big money in this country. People who are independent thinkers and do things differently, IE "Opposite" are the ones who get ahead. Take this to heart, be prepared to move fast and go out and do things the opposite way and make some money!

The Takeaway:
-A lot of people in the real estate market are spooked and panicked
-Doing the opposite of what most folks do will usually result in a huge profit opportunity
-From now until the end of time people will rent houses in quality areas
-There are opportunities to do the opposite of what everybody else is doing and make money in just about every aspect of every business
-Like a river zigzagging across a country the market is always changing and moving and we will have to recognize ways to make money with it as it changes.
-Change brings huge opportunity you just need to find it!

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Columbus REIA Welcomes Larry Goins on Thursday, March 6th, 2008

2008-02-25T18:26:00.005-05:00

Creating Your Own Buying & Selling Machine Presented by Larry Goins Hosted by Columbus Real Estate Investors Association GUESTS ARE FREE ====> Register at www.tellreia.com/offer Larry will share exactly how he buys and sells 10-15 houses per month without dealing with FSBO’s, Realtors, Buyers, Attorneys or Appraisers. This is not the same old stuff rehashed and repackaged by many of the national trainers. These are real world techniques that Larry uses everyday in his own business. Larry will be walking you through the house buying and selling system he created to automate his Real Estate business using techniques and processes many large corporations use in their business to take the owners out of the day-to-day grind, and be able to literally “SET IT AND FORGET IT”. It is his business plan and model. It’s what he calls his “Franchise In A Box”. Here’s a few things you will learn: · How to find properties online faster than your competition. · Power negotiating to get your offers accepted. · Exclusive property analysis to get your offers submitted fast. · How to have your properties sold in 2 hours or less. · How to create a buying frenzy for your deals. · How to have multiple Realtors calling you every week with wholesale deals. · How to buy & sell 3-5 houses a month working only 1-2 days a week. · How to buy 10-15 houses a month using a team. · The absolute fastest way to get your first deal bought and sold with CASH IN THE BANK. · How to buy and sell without ever looking at a property. · How to duplicate your business by hiring others to work for you. · Why and how to set up your database correctly for maximum results and automation. · How I have created a buying frenzy using whisper campaigns. · How to make a confident, accurate offer before getting off the first phone call. · How to use the technology many large corporations use to automate your business.

FOR BEGINERS: HOW TO FIND A DOMAIN NAME FOR YOUR WEBSITE

2008-02-23T01:33:00.001-05:00

As few months back, I discussed why it's important to have a website for your real estate investing business - credibility with buyers/sellers, lead generation, etc. As you think through your plans for launching a website this year, here are a few important things you'll need to consider:

Let's start with a domain name. Simply put, a domain name is your address on the web. It's where your business lives in cyberspace. Today, the top level domain is a .com (dot com) but as this one became more popular they needed to add others such as .net, .org, .mil, .info, and .biz to fill the demand.

Unquestionably, the most powerful is still dot-com. In my business, unless I can get the dot-com name I usually won't register the domain. Just like with the toll-free 800 numbers, people are pre-programmed to use the dot-com extension when they type in your web address. That means if you go with one of the second tier domains like .net or .biz, you stand to lose a lot of traffic to your website because of misspellings, and that can cost you money.

If you are having trouble finding a good domain with a .com ending here's a good trick. Try using a prefix or suffix. For example, by adding "NoBull" to real estate we were able to secure www.NoBullRealEstate.com. Here's another example. We own the phone number 800-Pay-Cash. So why not make your domain the same as your phone number: www.800PayCash.com. This gives people one simple and easy way to contact you. Make sense? You may need to get creative, but don't give up!

I also like domain names that are descriptive nd communicate a benefit like our Done4YouLeads.com website. This helps reinforce your marketing message and will also help you with the search engines.

Additionally, I don't like domain names that contain a hyphen. People get tripped up and frustrated by having to type these in, and that usually means you open yourself up for a higher percentage of misspellings.

To find a good domain, I would recommend that you start with a reputable domain registrar companies such as GoDaddy.com or 1and1.com. Simply navigate to their website and start plugging away. They have a tool that will tell you if the domain is available. If a domain is available you can usually purchase one online for $10-15 per year.

If you keep coming up short using this method you can always try to back order a domain using a service like Pool.com, Snapnames or GoDaddy.com. In this situation, if the domain you want is not renewed these companies will register it for you in your name. You should expect a low hit rate on this but every now and then you might get lucky.

Another option is to buy a domain at auction. Sites like Sedo.com or Buydomains.com. Sometimes worth the price if you can get your hands on a good name. And finally, your last option would be to contact the domain name owner personally and work out an arrangement to buy the domain you want. You can find out who owns a domain using a site like Betterwhois.com and email them.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Look at what everybody else is doing ? AND DO THE OPPOSITE!

2008-02-19T01:25:00.001-05:00

My mentor Jack Miller always used to say if you want to make big money look at what everybody else is doing and do the opposite! As usual Jack's right and in today's market this could not be more accurate. But let's examine this closely to see why it works.

Everyone is panicking and selling: Yes, it's the old lemming mentality; lets all run off the cliff together. It's amazing to me how short a memory most folks have. For as long as I can remember, at least one time in each decade there has been some sort of recession or downturn in the real estate market. The same can be said of the stock market as well. In fact, I bet you could look at most other businesses no matter what they sell or make and you can find that they have had downturns. Interestingly enough these markets always come back don't they?

We know a few things for sure about this country. They are not making any more land, people need to invest their money, and the population is going to continue to grow and age. We also know that people need a place to live no matter what happens and I mean no matter what happens! We also know that no matter what happens the most desirable and most sought-after place to live is in a single family home in a nice neighborhood with a decent school district. This is the universal law of life and of single family home investing. People will always want to live in nice homes in nice areas. I cannot imagine this axiom ever changing, can you? We also know that if people cannot get financing to purchase these homes, they will gladly rent them. This has never changed and never will.

So why is doing the opposite so important? Competition baby! When you are doing what everybody else is doing you are competing with everybody else. This is the worst possible scenario. We see this particularly run its course in the stock market frequently when a stock starts to tank or when rumors fly. A stock will begin to perform poorly and everybody will start to sell at the same time. When this happens, you are competing to sell when everybody else is selling, maximizing your competition yielding you the lowest price. Of course, you want the opposite to happen. You want to be selling when everyone one else is buying which is what was happening in the real estate market during the past three years.

Well the tables have turned right? So let's apply our theory to the current situation. Find out what everybody is doing and do the opposite! Right now everybody is panicked from watching the news and predicting dire economic and housing futures. In short, everyone is fearful. Well what does our buddy Warren Buffett say when he sees this situation? It's time to get greedy and do some serious business that we'll be talking about for a long time. Right now we are seeing dramatic discounts on properties as people are panicked and fearful. But what is everybody else still in? Nothing! That is the beauty of our "proven" theory. We are not knee-jerk short-term nervous Nellie's are we? We know how the world works right?

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Another Bad Mortgage Bailout Plan in the Works

2008-02-15T01:11:00.001-05:00

Last month you heard me sound off on the governmental sub-prime bailout plan. This month, let's pick up where we left off, and talk about the mortgage bankruptcy plan passed by John Conyers (D) in the House Judicicary Committee. This bill is scary.

Under existing law, bankruptcy judges can't modify any of the loan terms on a borrower's primary residence. Conyer's bill turns these proceedings upside down. His bill gives the bankruptcy judges the power to manipulate, change and reduce the amount of money that is owed on the foreclosed property based on what the court deems the value of the house to be.

Judges also have the authority to reduce the interest rate on the loan if they think it is too high, and these "troubled homeowners" can stay in the property as long as they like to take advantage of these favorable terms. So who is paying for all of this? You! Here's how most free market critics like me see this playing out:

Lenders will argue that the government is putting mortgage debt on the same playing field as credit card debt in a bankruptcy setting. This will create more risk for the lenders, and in turn they will pass these costs on to you.

If you are a consumer, that means interest rates and loan fees will go up. If you are a real estate investor, this law will make it more difficult to find buyers for your properties. Stay tuned.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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SOME OF MY ALL-TIME FAVORITE DIRECT RESPONSE MARKETING & ADVERTISING BOOKS

2008-02-11T01:40:00.001-05:00

I'm often asked in our Done-4-You Lead Generation Services business (800-Pay-Cash ) what I believe are the best books for real estate investing marketing. In the process of organizing my office over the Holidays, I had a chance to put my all-time list together and thought I would share that with you. Good luck finding a few of these. In several cases I had to use the Ohio Link statewide library tool to get my hands on these.
Here you go:
- The Gary Halbert Letters, Gary Halbert
- Scientific Advertising, Claude Hopkins
- Triggers, Joseph Sugarman
- Tested Advertising Methods, John Caples (Fourth edition or earlier)
- How-To Write A Good Advertisement, Victor Schwab
- The Ultimate Sales Letter, Dan Kennedy
- Mail-Order Secrets of A Marketing Maverick, Joseph Sugarman
- The Collier Letter Book, Robert Collier
- What a Way to Live and Make A Living - The Lyman P. Wood Story
- Influence, Cialdini

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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THIS BILL IS FLYING UNDERNEATH EVERYONE?S RADAR

2008-02-07T01:06:00.001-05:00

Everyone is so caught up in the subprime loan rescue plan that they are not paying attention to House Bill H.R. 3648. This bill amends the Internal Revenue Code of 1986 to exclude discharges of indebtedness on principal residences from gross income, and for other purposes.

Under this congressional proposal, there is a huge homeowner break for "short sales" -- that is, when owners sell a home for less than is owed on the mortgage and the lender forgives the difference. Today, the amount that's forgiven is regarded as income, and the seller owes tax on it (sometimes referred to as a 1099). The proposed legislation would forgive that tax. Consider this. How often have you seen or heard of a lender go after a homeowner with a deficiency judgment? Rarely, if ever. Remove the threat of the tax and what does that do to the homeowner's motivation level to work the short sale process with you? I'll let you decide.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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DON'T FORGET THE ACTIVES, WITHDRAWNS & OTHERS!

2008-02-03T01:11:00.001-05:00

Let's say you went to a car lot and there where 50 cars for sale which were exactly the same and you knew that 3 of them had sold for 20k. Does that mean the rest are worth 20k? You would want to know a lot of other stuff wouldn't you? Like: How long have they been for sale? How many more are coming? How fast did the 3 sell? How hard were they to finance? I would want to know all those details. Well this analogy applies to houses. It always amuses me when someone tells me a property is worth X because two or three similar houses sold in the last 120 days. Wowwee! It must be worth that, NOT! Cherry picking 3 similar comps does name make a house value. You need to look at the entire picture! Do your homework. Everyone messes this up. It's art and science guys, not just science. Ok, value diatribe over (for now). OK, OK I GET IT, I CAN FIGURE OUT VALUE! Once you are confident assessing value, you are halfway home. You can then confidently negotiate deals with little risk knowing that you bought at such a discount it does not matter what happens in the market. You win! Don't make the mistake of thinking that a 10% discount is a good deal- it's not. When you go to resale a house you will most likely spend at least 10% in costs of sale- IE you have little if any real equity. SPECULATORS ARE SUCKING WIND As shown above determining the value of property is not as easy as people would have you believe. It's doable and repeatable, but it takes some effort. Now, imagine that you are buying a property that does not even exist yet. How much is that one worth? Hmm, that's a problem. Well that's what a whole lot of folks did and many folks have been out selling these "pre-construction" deals over the past few years. Talk about risky. It's hard enough to figure values locally. So, to make it more fun, these deals are located far, far away, like Miami or in warm fuzzy places. Of course, I don't recommend this strategy unless you like gambling- and I don't like gambling- I prefer investing. Why gamble when you can do the work and buy it right? A little speculating is ok if you can afford and are prepared to lose money if things go wrong. However, most people speculate out of laziness or greed. THE TAKEAWAY: Buying it right is now and always has been your best insurance to make sure you make money in real estate -If you are paying cash I suggest you don't pay more than 75% of retail value less repairs. -You must learn to determine retail value on your own- as very few people know how to do it. -3 comparable sales in the last 6 months do NOT create infallible proof of value, in my opinion it ain't much- especially when I am spending my own money! -You cannot rely on someone else to determine value- it's too big a risk. - The tools are out there- find them and use them -you will feel much better about it! Author: Steve Zehala, Co-Executive Director Columbus REIA This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association

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FOR BEGINNERS: HOW TO SPOT A SUBPRIME LOAN?

2008-01-29T01:10:00.000-05:00

There really isn't an "official" definition of what makes a loan subprime or not. One key factor in determining what kind of loan a borrower gets is his or her credit score. Credit scores can run from 300 to 850, and many would say that a credit score of 620 is a rough dividing line between borrowers who are unlikely to qualify for a conventional, or prime loan, and those who may be able to do so. But this is just a rule of thumb - many people with higher credit scores take subprime loans.

Generally speaking, subprime loans can also contain these types of features:
- No down payment (or a second loan used to finance the standard 20% down payment, so that the borrower can avoid purchasing private mortgage insurance).
- Interest-only loans, ultra-low teaser-rate loans.
Usually have a low, fixed introductory rate that adjusts annually after first 2-3 years.
- Loans where the borrower is allowed to simply assert what his or her income is with little or no documentation.
- Loans with prepayment penalties that kick in when the loan is refinanced or paid off before its term. Up to 80% of all subprime mortgages carry a prepayment penalty.

Author: Dave Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Buying It Right Is The Best Insurance

2008-01-25T12:15:00.001-05:00

OK, what is someone to do in this crazy market? I get asked all the time "When is the market going to bottom out"? When will the foreclosures end? When will the financing market get straightened out? Who knows, who cares! "There's gold in them Hills!" With all the hyperbole, let's review some fundamentals.

YOU MAKE YOUR MONEY WHEN YOU BUY.
You have probably heard this clich? once or twice but it is worth repeating and don't ever forget it, but let's dig a little deeper. The truth is most good investors out there abhor risk and the best way to mitigate risk is to buy in such a way that no matter what happens you cannot lose. Can this really be done? Oh yeah, absolutely, it happens all day every day but let's get more specific. Buying in such a way that you cannot lose can be done in several ways. The first and most obvious way is to buy at huge discounts. What is a huge discount? Well this depends on who you ask, but in my opinion when you are paying cash you should never pay more than 75% of retail value less repairs MAX. Truth be told, the pro investors out there buy at much greater discounts than this but the above number is a reasonable benchmark.

WHO IS THE KEEPER OF THE RETAIL VALUE?
Ok, before I go any further on this we need to talk about "Retail Value". What is retail value and who determines it? YOU DO! We get calls all the time from folks telling us that they will take "x" dollars less than the appraised value or retail value. Right! The problem is that their appraised value is often based on some crackpot appraisal done by an appraiser who must have had a gun held to his head to come up with such a ridiculous number! We've had folks show us appraisals where the comps chosen were miles away while there were real comparables right next door. Hello! It's nothing short of amazing and ridiculous but it happens all the time. In my world, appraisals are worthless.

WELL THE AUDITOR HAS IT RIGHT, RIGHT?
Hmm, ok well I can just go and look up county auditors' appraised value to find out what it's really worth right? Uh, Houston we have a problem. Unfortunately, these numbers are frequently just as bad and as the crazy appraisal numbers. It's hit or miss and they cannot be trusted or relied upon. Many of the auditor reassessments were made at the height of the market and when numbers were inflated. We are seeing houses in areas where nothing has sold for over 60k in a year with auditor appraised values of 80k+! These folks are being taken to the cleaners on taxes- but I'll save that diatribe for another column.

ME, MYSELF AND I.
Bottom line is YOU are going to have to rely on your own research, instincts and wherewithal. The good news is that in the internet age, you have numerous tools at your reach to get some damn good data fast. Trulia.com can give you all sorts of data on listed property in the area. Zillow.com can show you recent solds and the local newspaper prints all homes sold by zip codes on Saturdays. The county auditor has good data on solds as well. There are a plethora of other sites and resources available as well and we have many local vendors who have some outstanding software that can do much of the work. However...

Author: Steve Zehala, Co-Executive Director Columbus REIA

This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors' Association.
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Sorting Out the Winners & Losers

2008-01-22T15:15:00.000-05:00

With all the talk over the last several weeks about Bush's subprime "bailout", this month let's try to rack our brains and sort out the winners and losers. Under this deal, the mortgage industry would voluntarily help up to 1.2 million homeowners either freeze mortgages at their low introductory rates or refinance them. The deal won't help borrowers currently in foreclosure, 60 days delinquent, and in some cases people with good credit scores (if the bank thinks you can afford the higher rate you pay it) The government party line is this: The deal will help stabilize falling home prices and rising foreclosure rates, buoy the mortgage market and give Wall Street peace of mind. The Democrats say the plan doesn't go far enough. Others say that the government should get out of the way and not try to fix problems that full-grown adults have created for themselves. So, from my admittedly biased, small government, free market, real estate investing point of view…. who wins? Consider this: Treasury Secretary, Henry Paulson, estimates that 600,000 of the subprime borrowers whose rates will reset in the next two years fall into this category. That means there will be 600,000 less "renters" that should have been tenant-buyers in the first place. The other 600,000 that don't qualify will be forced to get some credit counseling to review their "refinancing options". Sounds like a good time to start a credit counseling business doesn't it? How do the credit counselors get paid? Are the banks planning on doing these refinances for FREE? In essence, the government is trying to maintain higher house prices while manipulating supply. All markets go through cycles. Stocks. Bonds. Currencies. Commodities. Others. Investors in this business for the long haul should not be deprived from having good buying opportunities on the downturn. The government said the intent of this plan is to "Not bail out lenders, real-estate speculators or those who made the reckless decision to buy a home they knew they could never afford" But by only taking investors with credit scores under 660 how are they not hurting the real estate investing gene pool. How do these real estate investing speculators NOT get a free pass? Plus, if the investor "allegedly" lives in the house they may also qualify for a 5 year freeze on the introductory rate. Who benefits from the appreciation? And finally, what are we to think about all the homeowners that played by the rules? You know, the ones that drove the older car, lived in the smaller home, and paid down their credit cards, while others used their new homes as an ATM. I'm sure there are many homeowners that are deserving of some help, but how is it in this society that this many people can be rewarded for being less responsible? OK, off my soap box and back to work... Author: Dave Zehala, Executive Director Columbus REIA This blog entry reflects the opinion of the author and not necessarily the opinion of the Columbus Real Estate Investors Association

Check out Robert Shemin Tonight at 10:00PM on CNBC

2008-01-03T13:09:00.000-05:00

Robert Shemin, JD, MBA and real estate investing entrepreneur will be speaking at the Columbus Real Estate Investors Association meeting on January 10th, 2008 (see details on this page). If you would like to catch a glimpse of what Robert is like in person prior to this meeting, please tune in tonight at 10:00PM on CNBC and watch "The Big Idea with Donny Deutsch". Donny Deutsch is famous for interviewing the most powerful people in business, entertainment and politics, and tonight, Donny will be introducing you to several men and women who have made BILLIONS with their Big Idea. Tonight, one of Donny's special guests will be Robert Shemin! Listen in as Donny interviews Robert and he shares with you: * The #1 Most Important Thing you MUST do every single day if you want to become a multi-millionaire! * The SEVEN Little-Known Secrets that 1,000s of self-professed 'Rich Idiots' (my protégés) have already used to attract and secure lasting wealth! * How you can start living a "rich lifestyle" starting TODAY... how to travel first class, live in your dream home, and drive your dream car -- without going into debt or making a dent in your wealth! ... * The "Spin the Money Bottle" game -- What it is and why... if you don't stop playing it... lasting wealth will never find you To see Robert speak LIVE at our next meeting please click here===> www.tellreia.com/offer

NO SHAME IN THE LISTED PROPERTY GAME EITHER:

2007-12-30T01:35:00.001-05:00

Just a few months ago if you would have made a creative offer on a listed property you would have been laughed back to submission. Guess what? The show is on the other foot. Guys like us who made pro buyer screwball offers are now being courted. On many properties the agents are glad to have any kind of offer and so are many of the sellers. Even no money down offers can work. How will the agents get paid on 0 down creative offers? Well that's between them and the sellers but an agreement can be made that upon full transfer of the property via cash they get paid. Guess what? A possible future commission is often better than a expired listing that goes and lists with another agent.

THE TAKAWAY: Don't be afraid to make any kind of offer your heart desires. Is there a house you would like to upgrade to in your neighborhood that isn't selling? Heck, go offer them what they owe, zero down, lease option or land contract or owner financing at a payment you like. Trust me - they won't bite and feel free to blame it on me! Go get em and when you get your upgrade house invite me over for laugh and a beer!

Author: Steve Zehala, Executive Director, Columbus REIA
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A FEW RULES OF THUMB

2007-12-26T01:24:00.001-05:00

Here's what Charles Farrell, Wall Street Journal, has to say about vacant house holding costs: "Plan on the monthly cost of carrying a vacant home equaling as much as 1% of the home's value. This includes utilities, vacant house insurance, property taxes, maintenance, and, of course, the mortgage."

Here's what Chris Mayer, Columbia School's Milstein Center for Real Estate says about calculating days on market in a slow market: "Ask your real estate agent how many properties are on the market in your town today, and how many have sold in each of the past 6 months. As an example, if there are 2,000 houses on the market today and 200 houses sold last month that means it's taking about 10 months to retail a house. Pretty simple math but nobody ever does it. If you price your house like everybody else, it might take 10 months to sell it."

***For those of you wondering, the Columbus numbers are as follows: 11,421 homes for sale in Franklin, Fairfield and Delaware counties. 1,180 homes sold in October 2007. That math works out to be 9.7 months. Factor in Steve's analysis from his blog post this month and the numbers get even worse.

Author: Dave Zehala, Executive Director, Columbus REIA
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THE BROKER STATS ARE A JOKE!

2007-12-22T01:22:00.001-05:00

While I'm on the subject of agents and brokers let me break some news to you. The stats they are feeding the public are a joke. I mean a real joke. They purposely skew the statistics to make themselves appear dramatically more efficient then they really are. Now don't get me wrong I'm a supporter of agents and brokers but I get totally annoyed by some of their shenanigans. Let's talk about days on market for example. Let's say a property goes for sale with an agent for 180 days and does not sell. Let's say the owner decides to relist the property with another agent and it sells in 10 days. How long did it take to sell that house? Well according to the days on markets stats that brokers report that property would show that is took only 10 days to sell. Hmm, that's a problem isn't it? It really took 190 days not 10 days but the first listing is ignored in the stats. I could go on and on. I estimate about half of all listings expire without selling and this stat is largely ignored. So when the brokers tell us the average time to sell a house has gone from 90 days to 110 you can smile knowing that's just a little skewed if you get my drift. The real number is probably more like 220+ days so be prepared.

SO WHAT DOES THIS MEAN? Smokin Hot Deals Baby! In my mind it's official. "Game On Baby" for fun, creative, extremely profitable deals. When is the best time to buy? Let's say it together "When the Market is down" and that time is now. Years down the road we will be looking back at this market saying "Holy Smoke we made some good deals back then". Just the other day we made an offer to a gal that I never thought would be accepted. The property had been listed for 180 days with no offers at 84k. We found out the house was free and clear and we offered $55k, 500 a month for 100 months and no money down. Yep they took that offer. Wow who'd of Thunk it!

Author: Steve Zehala, Executive Director, Columbus REIA
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Bexley, OH 43209

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THE INTERNET AND REAL ESTATE INVESTING

2007-12-18T01:57:00.001-05:00

According to a new Harris Poll, four out of five U.S. adults go online now. That's 80% of all US adults, up from 57% back in 2000. They are also spending an average of 11 hours a week on the internet. That's about one and a half hours a day.
Demographically, the poll also found that while online access is still dominated by younger adults, 78 percent of those that do go online are 30+ years old, with baby boomers becoming a more prominent user in this picture.
Additionally, here's an interesting fact from some surveying we did in our business: 74% of all of the sellers we bought houses from last year said that BEFORE they decided to take the time to meet with us they checked out our website to make sure we were a viable company. Half of these survey participants specifically remembered viewing our online testimonials, TV commercials and our F.ree special reports.
In my opinion, as the internet becomes even more commonplace across all demographics, having a well crafted website will make a difference on how many leads you convert to appointments. More appointments = more deals = more cash. A few years ago, it seemed that having a motivated seller website was a luxury. Today, it's turning into a necessity.

AUTHOR: Dave Zehala, Executive Director Columbus REIA
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Columbus Real Estate Investors Assoc.
800-PAY-CASH LLC
2525 E. Main St
Bexley, OH 43209

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Smokin Hot Deals Are Coming Your Way!

2007-12-14T13:50:00.000-05:00

Just they other day while reading our local "paper" (if you can call it that) I about lost my lunch when they featured an article on the benefits of owner financing techniques. Say what? Just about 18 months ago you could find article after article about how all kinds of owner financing was "Bad" and could result in "Due on Sale" issues. The overwhelming consensus was to avoid them at all costs. But then reality comes into play. It never ceases to amaze me how the fast the media will change their tune to fit the times. The truth of the matter is that when folks who are out there trying to sell their house don't sell it -something has to be done. When sellers are facing two house payments, utility costs through the winter, huge vacant house insurance cost and more many sellers will now consider just about any kind of offer.

SAVE THESE ARTICLES!

When you see these articles save them. Why? These articles give you a hall pass to make these kinds of "Legitimate" offers to sellers. Then, when you make owner finance type offers you can attach the article to lend credibility to you offer. It just like high school 'Everybody's Doing It" and the proof is in print. Even many real estate agents are on board with this. I have several properties listed with some very good local agents and I recently got a letter from one particularly good agent with a newspaper article attached. Guess what article it was? Yep the one I saw above. Why would the agent send me a newspaper article about the newfound prevalence of owner financing? Easy, this sharp agent realizes that to make deals happen in this market is going to require some creative deals and that letter was sent to "Butter Up" his listing sellers to start considering these types of offers. Very smart and that's why I use him.

Author: Steve Zehala, Executive Director, Columbus REIA
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Columbus Real Estate Investors Assoc.
800-PAY-CASH LLC
2525 E. Main St
Bexley, OH 43209

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WHAT'S WORKING RIGHT NOW

2007-12-11T01:32:00.001-05:00

When it comes to retailing houses, one of my clients in Cincinnati is reporting some good success using some old fashioned direct mail techniques. Here's what he's doing: 1) He is fortunate enough to have a few retail properties clustered in or around the same subdivision; 2) He is pulling a list of renters located within a 2 mile radius of the subject properties (he uses Haines to do this); 3) He is sending them a standard sized post card with a giant headline that reads "Why rent an apartment when you can own a beautiful home less than 2 miles away" 4) He crams in a ton of 'reason why' copy explaining why renting vs. owning is a bad idea. 5) He profiles the properties on the backside of the post card; 6) He tempts them with a FREE HDTV offer if they get the house under contract within 30 days. 7) He mails these postcards out in 5 minutes or less using the USPS NetPost service; 8) He sold 1 house on his first try.

Author: Dave Zehala, Executive Director, Columbus REIA To unsubscribe or change subscriber options visit:

Columbus Real Estate Investors Assoc. 800-PAY-CASH LLC 2525 E. Main St Bexley, OH 43209

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Announcing Robert Shemin

2007-12-06T16:32:00.000-05:00

Please join us in welcoming Robert Shemin to our club on January 10th!!!

PRE-REGISTERED GUESTS ARE FREE! OPEN TO THE GENERAL PUBLIC! ---> www.tellreia.com/offer

Here's some video footage of Robert promoting his new book coming out in March 2008:

http://www.robert-shemin.com/watch-the-video.htm

http://tellreia.com/offer