Real Return Real Estate

Located in Central OH, Columbus has the most stable economy in OH.  Home to The Ohio State University, Columbus has experienced job and population growth for years.  Very similar to Indianapolis, the diverse economy did not take as much of a hit during this economic slowdown as many areas in the US.

During the boom, home values did not sour like many areas out West and in Florida.  They stayed fairly stable and with all the foreclosures, there are plenty of distressed properties to cherry pick from.  Columbus seems to have flown under the radar.  You see in the media areas that are hyped for different reasons suddenly experience tremendous competition and demand.  This is not the case in Columbus, just one of the many reasons this Central OH city is a yet to be discovered gem!!

Many of the homes were built in the early 1920s and are in need of repairs. Cosmetic fixers can be had at extreme discounts.  If you are a speculator, I do not recommend this area.  If you have read my previous articles you will know that I am not a speculator, rather I control my success by purchasing at extreme discounts, complete value added repair and have multiple exit strategies.

Buy and hold is usually the best strategy, but there is strong flip potential around 80-120K in with ARVs of 150-250K.  Best of all these properties cash flow giving savvy investors multiple exit strategies and the supply of distressed properties is plentiful without tremendous competition.  Multiple exit strategies are realized that provide tremendous back up plans and minimize risk and losses.

To summarize, Columbus has very little competition, plenty or prospects, the 3^rdlowest chance of depreciation according to the PMI Risk Index of cities with population 500K or more and you can achieve multiple exit strategies.  Savvy investors with a good strategy can clean up in Northeast Ohio!!

Situated on Lake Erie, the greater Cleveland and Akron area comprise of approximately 3 million people. Many Universities including Kent State, Akron and very prestigious schools like Case Western and John Carroll call Northeast OH their home. 3 professional sports, the Rock and Roll Hall of Fame, the Football Hall of Fame and Cedar Point the world’s best rated amusement park are all in or not too far of a drive.

During the boom, home values did not sour like many areas out West and in Florida. They stayed fairly stable and with all the foreclosures, there are plenty of distressed properties to cherry pick from. Cleveland seems to have a bad reputation. Located right on Lake Erie, having potential to be a huge metropolis, Cleveland has been dubbed the nickname “Mistake by the Lake”. Also, the City of Cleveland ranks poorly in poverty levels mainly because East Cleveland which makes up a large percent of the population of the Cleveland city limits is a giant warzone. However, including the suburbs and entire metro area they rank just fine. Many people are scared away by this reputation and reports, but that just lowers the competition leaving tons of tremendous opportunities for the savvy investor.

Many of the homes were built in the early 1920s and are in need of repairs. Cosmetic fixers can be had at extreme discounts. In fact, I am the only offer on a property right now and will be in about 20K. While it is not in an extremely desirable suburb, the rents will be around $1000 and it is not a warzone. That is some incredible cash flow.

Buy and hold is usually the best strategy, good flips can sometimes be found around 60-120K in with ARVs of 100-200K. Best of all these properties rent for $750-1500 so it is easy to fix them up and rent them for positive cash flow. Multiple exit strategies are realized that provide tremendous back up plans and minimize risk and losses.

To summarize, Cleveland and Akron have very little competition, plenty or prospects, the lowest chance of depreciation according to the PMI Risk Index of cities with population 500K or more and you can achieve multiple exit strategies. Savvy investors with a good strategy can clean up in Northeast Ohio!!

Let’s face it, money does not disappear, it changes hands.  There is a lot of money sitting on the sidelines or in investments making little or negative returns and these individuals would love to have a secure double digit return.  Here are some keys to get more Private Money then you could ever need.

1. Find a great deal - The deal must have solid and preferably multiple exit strategies and be able to withstand worst case scenarios.
2. Pitch it is an opportunity to everyone you can - Present it as an opportunity, do not say you need it or act desperate.  Put your opportunity in front of every family member, friend, person you know, REI Clubs, do forum posts, Craigslists and newspaper ads, I have even gotten responses from bandit signs or direct mail responses from high net worth lists.
3. Illustrate a win-win, the deal and the risk - Educate interested parties on what is in it for them, the numbers on the deal and how the deal can withstand the worst case scenarios.
4. Handle objections - Ask them what is prohibiting them from moving forward.  Handle the objections and get them to commit.
5. Play the numbers, all you need is one YES - Do not give up after 3 people, you may need to present it to 300 people before you get the desired results.  It is never a bad thing to have people fighting to give you their money.
6. Treat them like your grandmother - Be great to them, not good, great.  Also be completely honest and set expectations.

Most people invest in the area they live in. Others do extensive research and target areas they feel they can thrive. Many factors go into selecting where to invest. There are some important items to consider when choosing a market.

1. Comfort – most people invest where they live because they are comfortable in their own backyard. You are sometimes limited in the amount and size of deals. Many savvy investors have more of an entrepreneurial approach and are open to deals anywhere and look for only slam dunk deals. They build systems, teams and knowledge in other areas.
2. Availability of great deals – This comes down to supply vs demand. There are many factors that affect supply and demand in real estate such as interest rates, foreclosures, the local economy, job market, affordability, etc. You can find deals in any market, the numbers just have to make sense. Some markets have a lot of competition for very few good deals, other markets have an oversupply of opportunity and you can cherry pick only the best deals.
3. Home value stability – During the real estate boom, the writing was on the wall. Affordability became so low in some of the hottest markets that there was just no way home values could stay so high. Be conscious of the trends and direction of the market, there could be a tremendous impact on the success of your deal. Some areas dropped over 40% in value in the last couple years crippling many investors who did not exit.
4. Ability to successfully duplicate deals – When you find a market, type of deal, system and team that works, duplicate. It is called cookie cutter deals. Improve your team and system each time and do the same thing over and over. Savvy investors take an entrepreneurial role and delegate the daily processes and management to their team. Then they can concentrate on growing the business and high level decisions, while on vacation.

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Most investors go to networking events, real estate clubs and seminars. I’m sure you have stumbled across some very successful investors at these events. You may even be able to point out a handful of extremely successful ones. Just think about how hard and how long these investors have worked. Wouldn’t it be great to know what they know? What is it that makes these investors so successful?

There are two things most extremely successful investors have in common. They work no where near as hard as most investors and a fraction of the time. Why? Because these investors are running a business, not working in a business. They have delegated the daily processes, even delegated the management. They have completely separated themselves from the grind from daily processes and they can spend months at a time on extravagant international vacation while their business runs on its own. They are entrepreneurs.

Most people are technicians and handle all of the daily processes themselves. They are do-it-yourselfers and can’t fathom the idea of delegating tasks. There is only so much time and they can only do so many deals which constrains profits. Conversely, entrepreneurs unleash their team and focus on high level decisions, growing the business and ideas to improve the business. Meanwhile the managers run the business and the technicians handle the daily processes. Sure they may only make 80% of the profit as a do-it-yourselfer. But they can do 5 time, 10 times, even 20+ times more deals. They are not restricted, they delegate, build effective systems and teams. If you want to become extremely successful, become an entrepreneur. The most influential book I have read is EMyth Revisited by Michael Gerber. I strongly suggest you read this book, it may completely change your approach to your real estate business.

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Savvy investors are getting creative and taking control over the success of their investments. Many are using Self Directed IRAs, some are even taking advantage of the oversupply of opportunity in real estate. They are borrowing against their portfolio and making more as a passive real estate investor or Private Investor. All of this is made possible using a HedgeLoan and becoming a Private Money Lender.

What is a HedgeLoan? In the simplest explanation, it is a loan against your securities. You can get a loan backed by your stocks, bonds, mutual funds, IRAs and other securities. No FICO scores, no lengthy approval process, loans close in as soon as 48 hours. Check out www.hedgelender.com for more information.

So how can a HedgeLoan increase your portfolio returns by 5-10%? Easy, you be the bank as a passive real estate investor sometimes called a private money lender. You charge a higher rate than you incur and can increase your return on your portfolio by 5-10%. You pay 4-7% and charge 8-15%. Check out the loan comparison guide www.hedgelender.com/ProductComparison.pdf.

So two things must be done, follow the steps here www.hedgelender.com/closing.htm to obtain a HedgeLoan and find a credible real estate investor with a successful track record. Make sure you fund deals at no higher than 70% LTV. The current economy and lending environment has resulted in an oversupply of tremendous opportunities for real estate investors and one of the best times ever to be a private money lender. For questions or guidance on this or more on Free articles, Guides and information visit us at www.realreturnrealestate.com.