DIG Main Meeting June 20th Review

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Hello DIG fam,
Packed house last night, which should come as no surprise despite it being summer as Ashley Wilson was our speaker. In fact, here's my review: Ashley Wilson spoke. Nuff said.


OK, I can't leave it like that. It was just too good. Before I get into Ashley's awesomeness, shout out to some friendly faces that graced us with their presence last night--Anil was back again, now with a new HVAC company. As you can imagine, his company is slammed right now with work. Travis Edelman, long time A/L contributor, finally poked his head out of the bushes and showed his face at a main meeting again. And newbie Tyler Fox, a contractor I know from the gym (if you met him last night, you know why I know him from the gym, he could probably bench press Anil, Travis and me all at once) who was looking to learn about tax liens and pre-foreclosures---Marc Sherby, where were you??

Up on stage I gave shout outs to Raymond Lemire and Todd Hessbacher who weren't even there! C'mon guys, what's the problem? Were you in the hospital or something?

We all got to drink from the firehouse that was Ashley's presentation. A few highlights:
1. Much like driving for dollars with single family properties, you can do the same for apartment complexes! They don't need to look in distress, though, as you would be looking for with singles. You just need to train your eyes to start noticing them, then reach out to them.
2. Get the money first. This was an ey
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National REIA’s Monthly Government Affairs Update

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National REIA’s Monthly Government Affairs Update…

 

Sloppy Inflation: The discussion around inflation has become quite sloppy. Rather than focus on all the misstatements, please know that references to inflation “coming down” is in no way an actual reduction in costs. It is a reduction in the rate of increase. This is critical when thinking about budgets and longer term planning. The deflationary aspect of the econo
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DIG Main Meeting May 16th Review

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Happy Friday!

 

Another monthly meeting, another great experience.  Once again, the power of in person networking presented itself.  

 

  1. Sam Miller, our presenter, has been in real estate a while but only got into land development three years ago.  She got into it and got successful at it by networking.
  2. One of our members reached out to me by phone as I was walking into the meeting.  He ran into a situation I had posted about on the answerline where a business loan has ended up on his personal credit report.  How is this related to in person networking? We first met in person at a DIG meeting a year or two ago and have since met multiple times since then.  I put him in contact with everyone's favorite lender and mortgage expert, Bill Rookstool, who can help him navigate how to handle what happened here as it was beyond my area of expertise.
  3. I met a new member last night, Joe G, who was discussing a deal that had fallen through for him out in western PA because he couldn't get financing as his bank killed the deal.  As he described it to me, the deal made sense financially, so I recommended he speak with Bill Rookstool (two shout outs in one night!) to see if he could make the dea
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DIG Main Meeting April 18th Review

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Hi Everyone,

We had another great meeting last night with a great presenter, Tom Dunkel.  As usual, lots of networking occurred.  I learned a bit about the benefits of condo short term rentals, especially when first starting in the STR world from two different people in separate conversations.  Both of these investors are more experienced and successful than me, so there's got to be something to that.   Thank you, Tom and Marlon.

We learned a little bit about the new book club book, "The Go-Giver."  Contrary to Todd's busting of my stones, I actually do read a good bit, although not fast.  Yes, this book is short and easy to read, but it's also entertaining and teaches very good lessons.

Moving on to Tom Dunkel, last night's speaker about Self Storage.  When any speaker presents, even if you are not interested in the topic for your own specific investing, there are usually golden nuggets to be had.  Now, I was and am interested in self storage, but nevertheless, I pulled a few nuggets that can be applied to any type of investing.

1. Develop a team!  You can go fast by yourself, but you'll go farther with a team.   And more importantly, you will do less work IN your business and more ON your business, which requires less of your time.  This has been a stumbling block for me, personally, but I am working on hiring and developing a team as we speak.

2. An "A" employee/contractor is free.  What?!  Yes.  An awesome worker will make you more money than they cost.

3. Direct market expansion
-reach out to your competition to create a relationship (refer customers) 
-will become sellers someday
**John and JIm, let's start working on this today!

4. Boat and RV storage!  A severely underserved market with even less start up cost than self storage units.

Thanks everyone, for coming out last night.  Big thanks to Tom Dunkel for presenting.  I look forward to listening to my friend, Samantha Miller, present next month about investing in land. 
 

See you next time,
Matt Wahl
DIG President

March 2024 meeting -- Lender Panel

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 Another great meeting last night.  We had a fairly packed house to see Anil moderate a panel consisting of private-ish/hard-ish lenders Mike Yalowitz and Karen Fischer, whom I've used numerous times to fund my deals,
Bill Rookstool, everyone's favorite lender and market forecaster, and Bill Shipp, who I had the pleasure of meeting for the first time yesterday and is yet another wealth of knowledge.


I've already received feedback from a number of members who were very pleased with the information they picked up during the presentation (shout out Jack Kelly and Jim Welsh).  For me personally, I missed most of the presentation as I kept getting caught up in conversations in the vestibule and bar area.  On the bright side, it was networking at its best, so I can't complain too much.  I got to meet some new members, including Jonathan Potter, a long time investor who I believe just came back to DIG, Tom Ammas, and I finally got to put a name to face in George Voutsinos, among many others.  I also heard a VERY endearing story about Don Rotanz helping out fellow member Diana Wong get 7 units under contract.  Congrats, Diana and a big shout out to Don! 
To my mild dismay, I watched no basketball, but I'll take the networking over
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One of the most impactful and lasting learnings I’ve ever had could be summarized as “Vision First.” I bet you find the same thing.

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When I first got started, I went through the whole “I wanna do it all!” phase that a lot of new investors do. Every new strategy I learned about was exciting, and they all looked so profitable, and I had big goals about money and lifestyle that absolutely DROVE me to buy all the courses, do all the things, and become a tycoon as soon as possible, leave nothing on the table in the way of opportunities.

 

Where did that land me?

 

Working 18 hours a day 7 days a week.

 

Doing a lot of things that didn’t really “fit” me. Like rehabs. Which were profitable but didn’t really fit with my ‘details are hard’ brain.

Stressed out.

 

Ultimately divorced.

 

Yes, I made a lot of money, but I had no life.

And I’d love to say that once I homed in on the strategies I liked and was good at, figuring out how to spend my
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The Most Important Thing You Will Ever Read About Being a Private Lender

Real Estate Investors Association of Greater Cincinnati

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Note: laws and regulations regarding the advertising, registering, and formalization of private loans vary enormously state-to-state. Generally, these rules apply to the borrower rather than the lender, but even lenders should be aware of what the laws in your state say about these transactions. Of course, this article is not intended as legal, accounting, or other professional advice. Always consult with your legal, accounting, or other professional before making any investment.  Further, nothing in this article should be construed as an offering or solicitation of a security.

Private lending is a strategy in which even moderate-income investors can easily get involved.

There are plenty of real estate entrepreneurs and rehabbers who want to borrow your money; if you let it be known you have as little as $20,000 to lend in most markets, someone will be right there ready to put that cash to work.

If all goes as it’s supposed to, it’s a truly hand-off investment; you just sit back and collect checks. And the return is oh-so-much-better than other fixed-rate investments; you can expect to average around 6-8% per year total (because higher rate loans are generally also shorter term; when you loan money to a rehabber
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How to Avoid a Low Home Appraisal

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Thinking of buying or selling a home?

Even when both sides agree on a price, the deal could fall apart thanks to an under-appraisal.

Here’s the increasingly common scenario: The seller lists the house for $325,000, the buyer offers $275,000 and they settle on a $300,000 sales price. A week before closing, the appraisal comes in at $265,000, the maximum upon which the bank or mortgage company is willing to lend.

Who’s going to make up the $35,000 shortfall?

“This has proven to be a fairly significant problem,” says
Walter Molony, senior public affairs specialist with the National Association of Realtors in Washington, D.C. In the aforementioned scenario, the seller — having already come down — typically doesn’t want to drop the price further. The buyer may not have the available cash or may not be willing to pay more than the appraised value.

Consequently, the wheels often fall off the deal.

Bitter pill

Short appraisals typically arise in a declining housing market because of the lack of recent comparable area homes sales, or “comps,” making it difficult for appraisers to determine the current market value of a property. When home sales slow, good comps “age” fast. Add foreclosures and short sales to the mix and appraisals can run all over the map. The Home Valuation Code of Conduct, or HVCC, that went into effect in 200
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Funding Real Estate Deals

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You’ve made the decision to invest in Real Estate and are going through the process of building your team. However, one thing keeps jumping out at you – your bank account doesn’t have enough cash to fund the $125,000 you estimate you need to buy, rehab and hold an investment property you have your eyes on.

Just like the majority of other Real Estate Investors, you need to find a source of funds to complete your deals.

What you need to do is to sit down and think like a lender. 

If you were lending someone money to invest in real estate, what would you be looking for? Remember, you are putting your hard-earned funds at risk if the person you are lending to doesn’t get the job done. Hence, you will want to look at the situation very carefully before agreeing to be their lender. What are your biggest areas of concern? Before reading further, think of at least three questions you would want your borrower to answer.

Banks and private lenders go through the same practice.

Their goal is to generate a return on their capital while minimizing their risk. You need to prove to your lender that the investment you are asking them to fund is virtually risk-free. The riskier the venture, the higher the cost of capital.

Lenders look at the six C’s of Credit:

  1. Character – or perceived integrity
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