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  • 4 Tips To Help You Choose The Best Offer For Your Cincinnati & Dayton House

    Choose The Best OfferThere are many things to consider when choosing the right offer for your property. The best offer may not be the highest. In our latest post, we will offer tips to help you choose the best offer for your Cincinnati & Dayton house.

    Having multiple offers or different options when it comes to selling is a dream come true! Every seller would love the problem of trying to decide between multiple offers. However, you’ll want to employ some strategy when deciding which offer to pick. Just because the offer looks good on paper, doesn’t mean it’s the right one. Keep reading to learn more about some things to consider when deciding which offer to accept for your house in Cincinnati & Dayton.

    Tip #1 – The Actual Profits

    When looking at an offer on paper, it’s important to consider all of the costs you will incur, and deduct them from that offer price. This will give you a good idea of where you stand financially. A few things you might want to think about are your closing costs which will run about 2-5%. If you are leaving appliances or furniture behind when you move, these items may need to be replaced, which is an additional cost you will encounter after the sale. You should also factor in the cost of repairs needed in order to sell. You will likely make some repairs upfront and a few more after the inspection has been completed. Keep in mind, if you sell your house directly to Ohio Cash Buyers LLC, there are no repair or closing costs to worry about.

    Tip #2 – How They’re Buying

    Some buyers will pay in cash, without requiring a loan, while others will need to talk to the banks about financing. Cash buyers are often favored by sellers due to the faster closing speed and less red-tape. The offer is much more likely to go through as you are not bound by the results of an appraisal. Banks pull funding all the time because houses don’t appraise high enough. If your buyer is using bank financing to acquire the home, make sure they have been pre-approved so you don’t have to wait even longer for that to occur. Please note, that being pre-qualified is different than being pre-approved. With a direct sale to Ohio Cash Buyers LLC, you won’t have to worry about any hassles or waiting. The funds are available to purchase your Cincinnati & Dayton house outright, without any hassles or waiting. Our process is extremely simple and straightforward, with no red-tape to worry about.

    Tip #3 – The Timeline

    How quickly can the closing take place? The faster you eliminate your holding costs, the more cash you will be able to put in your pocket. Ask any investor and they will tell you that once you have decided to sell, the longer you end up holding a house, the more it is costing you. Your costs of ownership add up each month. Utility bills, property taxes, homeowners insurance, standard repairs, and maintenance are a few of the costs you will end up paying until the home closes. Once you add up all of the costs you will be facing month after month, your total could be in the thousands. By selling your house directly to Ohio Cash Buyers LLC, you’ll be able to close quickly and eliminate your holding costs right away.

    Tip #4 – Buyer Intent

    Do you want to make sure your home goes to a good home? Many people feel an attachment to their property, and with good reason. It has likely been the place of many memories and laughs. When selling your Cincinnati & Dayton home, when you find a buyer who will love the home as much as you do, you’ll have the peace of mind needed in order to sell confidently. When deciding which offer to accept for your Cincinnati & Dayton house, learn more about the people who want to buy and why. What are their plans for the home? Are they planning to live there and love it as you did, or do they want to tear the property down for something better? Remember, it is never ok to discriminate, but you do have the right to decide which offer is right for you! When selling your Cincinnati & Dayton house, it’s nice to have the peace of mind in knowing that the new owner will love the property as much as you do.

    When choosing the best offer for your Cincinnati & Dayton house, it’s important to consider more than just the price. The selling timeline, method of purchase, and intent of your potential buyer can all have an impact on which offer you ultimately choose. To learn more about the costs and alternate ways you can sell your house in the Cincinnati & Dayton area, feel free to reach out to us at any time.

    Do you want to learn more about how to choose the best offer for your Cincinnati & Dayton house? We’d love to help you run the numbers! Get in touch today!

  • How To Really Run The Numbers When Reviewing Offers For Your Cincinnati & Dayton House

    Reviewing Offers For YourWhen reviewing offers for your Cincinnati & Dayton property, it important that you know how to correctly run the numbers. Just because an offer looks good on paper, doesn’t mean it is the best choice for you. Learn more about how to crunch the numbers in our latest post! 

    While the highest offer might appear to be the best, this isn’t always the case. There are many numbers you will need to factor in when reviewing offers for your Cincinnati & Dayton house. Below, we discuss some of the costs you may face when selling your home in the Cincinnati & Dayton area.

    Closing Costs

    With a traditional sale to a private buyer, a seller can expect to pay about 2-5% of the final sale price in closing costs. While this varies by the transaction, you’ll want to budget at least 5% to closing costs to ensure you are covered. You don’t want to be surprised at the closing table, owing more than you had planned for.

    Repairs

    While reviewing offers for your Cincinnati & Dayton house, you’ll want to consider all of the costs you encountered making repairs and fixing it up. Repairs aren’t always cheap, and you will likely have to face them before putting your Cincinnati & Dayton property on the MLS. In addition, your potential buyer will likely attempt to negotiate even more repairs once the inspection has been completed. Spending money on a house you ultimately want to sell can be extremely frustrating, with a direct sale, you’ll be able to keep that cash in your pocket.

    Other Contingencies

    There are all kinds of contingencies a buyer might put in their contract. Having a contingency protects the buyer should something go wrong. If there is a problem with the property, they will be able to back out of the sale without any penalty. Some common contingencies include things like not being able to sell their current house in time. If their lender backs out of the deal. And if the inspection comes back with a significant number of repairs that need to be made.

    Timeline

    How fast will your buyer be able to close? As any property investor will tell you, the longer you hold on to a property, the more it will end up costing you. Holding costs can add up quickly, eating into your profits. While the property in on the market, you’ll have to continue paying for things such as homeowners insurance, property taxes, utility bills, possibly a mortgage, and routine maintenance on the property. You are responsible for these items up until the day of closing. If your house sits on the market for a while or if your sale falls through, you could find yourself stuck paying these costs for the next several months.

    Risk

    When reviewing offers you’ll want to calculate the risk involved in the sale. If your buyer is using financing, you’ll want to be prepared just in case things fall through. Often times, a lender will back out of the deal if a property appraises too low. Sales fall through every day, and you’ll want to be prepared if yours does too. If you’re working with a buyer who is using financing, make sure they are pre-approved, not just pre-qualified.

    If you choose to sell to a cash buyer, your risk of things falling through drops significantly. Cash buyers will have the money ready to go before making an offer for your property. This will save you days or even weeks as opposed to dealing with lender requirements. When you sell directly, you won’t have to deal with appraisals, inspections, repairs, or any red-tape from a lender.

    If you choose to work with a local {market_city] real estate agent, you’ll have to commit to a listing agreement. Once you have entered into this agreement, your agent will be entitled to their commission, or at least a part of it, no matter how the house sells. However, if you are able to find a reputable buyer such as Ohio Cash Buyers LLC before hiring a Cincinnati & Dayton agent, you’ll be able to instantly save on commission costs. This can be upwards of 6% of the final sale price that you’ll be able to keep in your pocket. This could amount to thousands of dollars you will e able to use for your next property should you so desire.

    Appliances and Fixtures

    Sometimes when selling a house, the furniture, fixtures, and appliances will all come into play. Does your potential buyer want to keep any of these items or will you be taking everything with you? If you are leaving any items with the new buyers, you’ll want to factor in how much it will cost you to replace these items. Having to replace appliances, fixtures, and other items in your new home can cost a fortune. Make sure you are prepared for these replacement costs before accepting an offer for your Cincinnati & Dayton property.

    We can help you know what to look for when reviewing offers for your Cincinnati & Dayton property. Get in touch with us today!

  • How To Calculate The Costs To Hold A Property In Cincinnati & Dayton

    Costs To Hold A PropertyWhen you are thinking about selling your Cincinnati & Dayton house, be sure you know the costs to hold the property. Keeping the property might be costing you more than you think. In our latest post, we take a look at the most common holding costs homeowners face when trying to sell their homes in Cincinnati & Dayton.

    Holding costs can quickly eat away at the sale price you will eventually receive for the home. As long as your house is on the market, there are a number of costs you will be responsible for. When selling your house to a private buyer who requires financing, the process to sell your Cincinnati & Dayton house can take months, resulting in potentially thousands of dollars you will have to spend. However, when you sell your house directly to Ohio Cash Buyers LLC, the holding costs can be eliminated on only a matter of days!

    Mortgage Payments

    The most obvious expense is the monthly mortgage payment. If you own a home you’re not happy with or if you are paying a loan on an underperforming rental, the hefty mortgage payment can be a lot to deal with each month. Your mortgage is undoubtedly at least a few hundred dollars a month. This is money you could be spending on a new property instead of the one that’s no longer working for you.

    Utilities

    Whether or not you are living in the home while it is up for sale, you will need to make sure the utilities are working for any potential buyer who may want to see the home. They will likely check out the light switches and the water pressure… things that can’t be done if you have turned off your utilities. Plus, you can’t really show a home in the dark! In addition, inspectors will need the utilities on in order to do their job. While your bills might be lowered if you are no longer living in the home, you should still plan on paying a few hundred dollars each month to your bills.

    Property Taxes

    Depending on where you live, the taxes can add up fast. People living in states like New Jersey or California will see these costs eat away at their profits even faster due to high property taxes which must be paid. You are responsible for the taxes up until the closing date. When working with a traditional buyer, the closing can take months due to the lenders red-tape. When selling directly to Ohio Cash Buyers LLC, your financial obligations to the home can end in only a matter of days.

    Homeowners Insurance

    Homeowners insurance is a necessary evil every homeowner is faced with. Depending on your home and policy, your insurance can help to quickly eat away at your profits. As long as you are listed as the owner, you will be responsible for the insurance costs. You should also keep in mind that insurance will be high for landlords as opposed to owner-occupied properties.

    Maintenance

    If you decide to list your Cincinnati & Dayton house, your home will inevitably need maintenance work while it is listed on the MLS. A good rule of thumb is to set aside 1% of the properties value for routine maintenance and minor repairs each year. This way you aren’t blindsided by unexpected costs while trying to sell your home. And remember, the faster you sell your house, the less maintenance you will be responsible for.

    Repairs

    In addition to the regular repairs and maintenance you will likely face, there is always a chance a major repair will be needed while you are waiting for a buyer. Maybe the roof starts leaking or the hot water heater blows. Things like this can be costly but should definitely be fixed in order to attract more buyers. You should always have an emergency fund set aside to deal with such expenses so you aren’t stuck with a damaged property while trying to sell it. When you sell directly to Ohio Cash Buyers LLC, all expenses are covered. Repairs and all, we buy as-is.

    HOA Fees

    If the property is located in a private community, you’ll be stuck with those homeowners association dues until you are no longer listed as the owner of the house. Depending on your community, HOA fees can be high, and some can change rapidly. Don’t forget to factor these costs in when it’s time to sell. Things like this can often be overlooked when trying to sell the property.

    As a homeowner in Cincinnati & Dayton who wants to sell, it important you keep all of your holding costs in mind. When they are all added up, the amount can be thousands. This can severly alter how much you are making on the sale. When selling your house in Cincinnati & Dayton, don’t forget to account for the holding costs. And don’t forget to find out how a direct sale of your property will benefit you!

    To help better understand the costs to hold a property in Cincinnati & Dayton, get in touch with Ohio Cash Buyers LLC today!

  • How To Use The Internet to Sell Your Home in Cincinnati & Dayton

    Now, more than ever, people are finding success selling their homes online. But with the online marketplace being so hot, you are likely to face some stiff competition! We have put together our favorite tips to help you stand out and sell your home fast!

    Go Where The Buyers Are:

    There are many online listing portals to choose from. Look up some listings in your area. What sites show up first in the search results? Many times, the tops sites are Zillow and Trulia. Love them or hate them, they have a great grasp on generating real estate traffic. When you list something on the MLS, it is likely to be picked up by these major sites. Whether or not you are advertising with them, you’ll want to make sure your properties are showcased well.

    There are services that will syndicate your listing to many top sites, so you only need to enter your information once. However, make sure to check your listing on all sites in which it was syndicated. Automation can sometimes lead to the data being jumbled.

    Consider Premium Listings:

    When you do a property search on any major website, you will likely see certain properties at the top time and time again. They paid to get that top spot. Just as the Agents you see over and over again paid to put their name first. If you want to give your property instant traction, it can be worth the extra cost to put your listing at the top.

    Create a Property Specific Website:

    A unique and interesting way to sell your home using the internet would be to create a property specific website. A basic website and domain won’t cost you much to get started. With a little SEO, content, and imagery, you can quickly build a site to rival the big advertisers when it comes to showcasing your house!

    Use Amazing Photos:

    They say a picture is worth a thousand words, and they are absolutely right. Make sure the words used to describe your house are “Stunning, spacious and immaculate!” not “Dated, cramped and dingy!” When buyers see a photo of your home, it tells them whether or not they want to pursue it further. For many buyers, it is not easy to picture themselves in the home if they are seeing your personal belongings. Get a head start on packing by putting your knick-knacks and decorative items away. Get rid of all the clutter, then hire a professional photographer to take photos of your home. Look through a few listings. Notice who paid for a professional job, and who took cell phone photos from the street.

    Use an Accurate Description of the Property:

    Be as detailed and as accurate about the property as possible. Disclose any defects but also make sure not to overlook the details that may be a selling point for a certain buyer. If you have recently re-done the roof, mention it. If there is a large and bright kitchen, you should mention it.

    Watch Your Words:

    When people are house hunting, the listings can all begin sounding alike and running together. A lack of adjectives will cause every property to be “beautiful” and “cozy.” Don’t blend in with the crowd! Use colorful language to make your listing stand out from the rest. Don’t just gloss over the ad, using generic words to describe your property.

    Use Data To:

    Acquiring, understanding and using data will almost guarantee you a quick sale. Using data, you will be able to:

    • Run comps of recently sold properties in the area.
    • Locate and contact the best agents in town. Online reviews will ensure you find the agent that is best for you!
    • Study market trends for real estate in your area. Ask questions such as: when is the best time of year to sell my Cincinnati & Dayton house? What are the current buyer demographics?

    Are you ready to sell your home in Cincinnati & Dayton? We are ready to help! Fill out this form, or give us a call now!

    Sell my house fast Austin

     

  • 4 Home Winterization Jobs Worth Hiring a Professional to Tackle

    Guest post by Bret Engle

    There’s something charming about getting ready for winter. As you unbox sweaters and stack firewood, don’t forget to make sure your house is ready for the season too. While some winterization tasks can be done DIY, others are above the average homeowner’s paygrade. Here are four projects on your to-do list that you should rely on professionals for:

    1. Install energy-efficient windows

    Inefficient single-pane windows could be spiking your winter energy bills. Replacing them with double-pane windows is a big project, but it pays for itself over time in reduced heating and cooling costs and increased home value. In addition to opting for double-pane, consider how the windows operate. According to the Department of Energy, awning, hopper, and casement windows are more airtight than sliding models.

    2. Inspect the roof

    Between freeze-thaw cycles and heavy snow loads, winter is the hardest season on your roof. Make sure it’s up for the challenge by scheduling a roof inspection each fall. A professional will assess the condition of your roof based on interior and exterior factors. They’ll check for roof sagging, damaged and broken shingles, corroded flashing, and signs of moisture accumulation on the roof, as well as signs of water damage on interior ceilings. It’s best to fix these problems as they arise rather than waiting and needing to replace the entire roof. In Franklin, OH, most homeowners can expect to spend between $6,000 and $8,053 on a new roof, which can make a dent in anyone’s budget.

    3. Clean the gutters

    Sure, you could clean the gutters by yourself. But who wants to spend a day perched on a ladder, digging in the muck? Not to mention, cleaning gutters is one of the more dangerous jobs around the house: According to the CDC, 43 percent of all fatal falls involve a ladder. Hiring someone to clean your gutters costs, on average, less than $200, and the small expense is worth saving yourself the trouble.  

    4. Maintain the furnace

    Fall furnace maintenance should be a part of every homeowner’s annual schedule. Not only do furnace inspections reduce the odds that you’ll end up heat-less in the middle of winter, it also protects your family from a potentially fatal carbon monoxide leak. During an inspection, an HVAC technician will test the furnace’s thermometer calibration, lubricate its motor, and ensure all parts are unobstructed and in good working condition.

     

    While some home winterization jobs are best left to professionals, other tasks homeowners can do themselves to save money and hone their handyman skills.

    Infographic Source: HomeAdvisor

    • Reverse ceiling fans: Many people don’t realize it, but most ceiling fans have two settings: one for summer and one for winter. Flipping the switch on ceiling fans will cause the blades to push warm air downward for winter to keep your house warmer.
    • Replace the furnace filter: A dirty air filter causes your HVAC system to work harder than it needs to, resulting in higher energy bills and a less comfortable home. Throw away your old furnace filter and replace it with a clean filter of the same size before turning the heat on.
    • Seal drafts around doors and windows: Worn-out weatherstripping and cracked caulk give cold air entry points into your home. Check doors and windows for drafts and seal air leaks as needed.
    • Check smoke and carbon monoxide detectors: Fall prep is a good time to make sure all smoke and carbon monoxide detectors are in working condition.
    • Gather snow supplies: Don’t find yourself in a snowstorm without a shovel in sight. Go shopping for shovels, snow melt, ice scrapers, warm clothing, and any other necessary winter supplies before bad weather hits.
    • Prepare an emergency kit: Sometimes, there’s no shoveling your way out of bad weather. Make sure you’re prepared for getting snowed in by buying non-perishable foods, bottled water, batteries and flashlights, and firewood. If you don’t have a fireplace, consider purchasing a kerosene space heater for backup heat.

     

    There’s a lot to accomplish before winter arrives. Hiring professionals for the big jobs helps homeowners get everything done in time so they can enjoy the winter season in comfort.

    Image via Unsplash

  • Short Sale vs. Foreclosure – What’s the Difference?

    Whether you’re a buyer or a borrower / seller, a short sale and foreclosure each present different advantages and difficulties.

    What Is A Foreclosure In Cincinnati & Dayton OH?

    In simple terms… “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home” (source).  If you stop making your house payments… your lender has the right to foreclose on your property so they can attempt to recoup their money that was lent to you. 

    A home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower, and make it very difficult to obtain a mortgage for many years.

    Depending on the state that you live in… a foreclosure can work in different ways. Check out the foreclosure process information over here at the HUD Government website.

    What Is A Short Sale?

    In a short sale, the home is still owned by the borrower.

    The definition of a short sale is… “A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt” (source: Wikipedia)

    In some cases, a short sale is an option agreed upon by borrowers and lenders. In a short sale, the home is sold for less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not still be owed by the borrower.

    This option typically takes some time, as a few different lending institutions may own the mortgage. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could fall through if even one lender doesn’t agree.

    Short Sale vs. Foreclosure – Your Options

    While both options can have ramifications, a short sale often has less of an impact on the borrowers creditworthiness. A foreclosure could impact a borrower’s credit score by 300 or more points, where a short sale may only dent the credit score by 100 points.

    Borrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage, where under certain circumstances, a short sale borrower can purchase immediately.

    As many Americans struggle with an economy that has yet to completely recover from the 2008 crash, folks are having a hard time making monthly mortgage payments. Choosing between being foreclosed and initiating a short sale (or a 3rd option…  selling your Cincinnati & Dayton house fast  )is an easy choice for a borrower having troubles paying their mortgage on time.

    Sometimes, lenders are willing to work with borrowers to complete a short sale, to avoid the fees and time consuming process of conducting a foreclosure.

    Our suggestion is always this.

    1. Talk with your lender and discuss ways that they can work with you on your loan. We offer this service where we can help guide you in the right direction if you run into issues with your lender… just reach out to us on our Contact page and we’ll discuss your situation.
    2. Attempt a short sale or other program your lender may have that forgives part of your loan, creates a new / more affordable monthly payment so you can get back on your feet, etc.
    3. If the bank isn’t willing to work with you very much… your best option may be to sell your house. Work with a local real estate house buyer service like Ohio Cash Buyers LLC to sell your house fast for an all-cash offer. If you’re interested we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form on our website over here >>
    4. Foreclosure. Last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished.

    By knowing your options, you may be able to dodge a significant impact to your credit score, allowing you to purchase a new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult for 5-7 years, so if you have the opportunity, a short sale can be the better option.

    Have a pending foreclosure?  We’d like to make you a fair all-cash offer on your house.

    Give us a call anytime at or
    fill out the form on this website today! >>

  • Fur a Good Paws E-Card

    We wanted to share the adorable little e-card we received from Fur a Good Paws! Click on the card to visit their website and see the good work that they do for our furry friends.

  • Where Are the Profitable Investment Properties in Cincinnati & Dayton?

    Where Are the Profitable Investment Properties in Cincinnati & Dayton-Finding a profitable investment property in Cincinnati & Dayton can seem like a fruitless endeavor. You scour neighborhoods, look at countless homes and attend auctions. No matter how many properties you look at, there never seems to be enough of a margin for you to pull the trigger and be profitable. Are there no worthwhile investment prosperities in Cincinnati & Dayton? Unlikely.

    Follow these rules to help you discover the profitable investment properties in Cincinnati & Dayton.

    Where Are the Profitable Investment Properties in Cincinnati & Dayton?

    Meet the Competition

    Like any other industry, real estate investment is a very competitive arena. The pool of investors vying for the same small pool of properties makes it hard to compete – especially if you are new or not well funded. By understanding who you are bidding against for properties, you will get a better insight about how to compete for the good, profitable deals.

    It can’t hurt to join an investment club and meet the competition. Not only do you learn about them, you become colleagues. Investment clubs are great resources to help you learn, develop partnerships,  and build a bigger real estate investment portfolio. This will enable you to acquire profitable deals you may not otherwise have the funds or knowledge to close.

    Redo Your Math

    Profits are calculated by subtracting costs from the purchase price. It is that simple. If you are losing properties to other investors offering higher prices, look at the numbers again.

    Can the other investors do the rehab for less? If so, why?

    Are the sales prices closing higher than you would have expected because of a change in the market? If so, adjust your numbers allowing you to make higher offers.

    Take a look at all line items and determine if you are in the correct ranges for all costs. It may be that you could acquire a property and still make a profit but you aren’t using accurate calculations.

    Become a Better Negotiator

    It isn’t just the competition that you need to gain a better understanding of in dealmaking. Learn better negotiation skills to improve your chances of closing a property at a price that will be more profitable to you. Sellers have needs. Learn what makes sellers tick.

    Part of what makes a seller tick might be financial distress, a family death or job relocation. Knowing why a seller wants or needs to sell or why the property is distressed in the first place will give you trigger points to work into your conversations on price.

    For example, if the seller is dealing with a probate issue, explaining to them that you are willing to work a cash offer and talk directly to the estate executor could help alleviate stress on the seller. You are offering a solution to the existing problem and this often gets results especially if your offer is below what the seller was hoping to get.

    Find New Opportunities

    We’ve talked about real estate investment opportunities as being a numbers game. The more properties you have the opportunity to see and bid on, the better your chances are to find one that makes you a nice, worthwhile profit.

    Real estate investment clubs are one location to open up more opportunities and even find better deals. You can also talk to the local county clerk to get a list of properties behind on property taxes. In some states you can buy the tax lien certificate and make a few bucks to see if the property forecloses, giving you the first right to the property for pennies on the dollar.

    Street signs are also popular ways to attract sellers who may be in an urgent situation. This is a good opportunity to have them call you rather than you doing all the legwork.

    ARE YOU LOOKING TO SELL A PROPERTY IN Cincinnati & Dayton? WOULD YOU LIKE TO GET A FAST CASH OFFER AND CLOSE QUICKLY? FILL OUT OUR FORM ONLINE AND WE’LL CONTACT YOU AS SOON AS POSSIBLE!

  • Common Investment Property Mistakes Buyers Make in Cincinnati & Dayton

    Common Investment Property Mistakes Buyers Make in Cincinnati & DaytonMany people are diversifying away from stock market investments to more tangible portfolio assets. Real estate investments are certainly the most common tangible asset investors start with.

    However, real estate is costly and thus high-risk if you don’t know what you are doing. Avoid these common investment property mistakes buyers make in Cincinnati & Dayton.

    4 Common Investment Property Mistakes Buyers Make in Cincinnati & Dayton

    Underestimating Costs

    “If you buy it they will come,” seems to be the mentality of many first-time real estate investors. They think that just by getting the title on a property, renters will flood in and thus the money will flow. This isn’t the case.

    In fact, there are many costs first-time investors don’t anticipate that end up costing them because they didn’t factor those into potential rents. These include maintenance, advertising, and repairs. Unlike your own home where you might leave a repair for a while, landlords must fix things in a timely fashion.

    Additionally, tenants don’t always remain in the home and often trash the place while living there. You need to factor vacancy time and property rehab in between tenants.

    Poor Location Selection

    It has been said over and over when it comes to real estate, “Location! Location! Location!” Real estate investments are no exception. Buying a property that is in a less than desirable location makes it difficult to both rent and resell.

    Sure, great deals can be found in depressed markets and unsafe neighborhoods, but at what cost? You may have trouble making your money back after a rehab,  let alone making a profit on the deal.

    Rehabbing properties in high-risk neighborhoods can be profitable but you need to make sure you understand the risks. So make sure to research neighborhoods thoroughly that you are interested in investing in.

    Renting to those in high-risk neighborhoods can mean more problems with upkeep and maintenance, including vandalism, drug and gang issues.

    Not Understanding Financing

    Buying a personal property and buying an investment property follow two very different financing principals. You won’t get the same great financing programs and rates available to owner-occupied homes. In fact, everything from insurance to property taxes will increase with investment properties.

    Expect to have higher down payment requirements for investments and be prepared for higher interest rates. Conduct extensive market research to make sure your property will yield the rental income or sale proceeds to pay the higher costs and still have profit.

    Failing to Perform Due Diligence

    Just because you plan on rehabbing a property doesn’t mean you should ignore all the due diligence requirements of sound investing. This means pulling all title reports and having inspections and disclosures note anything that might be wrong with the property.

    Finding out there is a huge lien on the property transferred to you upon the sale could lead to foreclosure. Similarly, not paying attention to a potential foundation issue can lead to thousands in repairs you weren’t budgeting for.

    Buying a distressed property doesn’t always mean you’re buying a money pit; learn to assess properties to properly budget for repairs and prepare for unanticipated costs. There are always unanticipated costs when buying an investment property, even with sound due diligence.

    Start small with your first investment. There is no need to learn the ropes with a million dollar apartment complex. Buy a single family home or a small multi-family building for your first few deals. This way, in case you make a mistake, it will be a bit easier to recover from.

    IF YOU ARE AN INVESTOR IN Cincinnati & Dayton AND ARE LOOKING TO PARTNER ON A DEAL, CONTACT US TODAY!

  • 3 Smart Financing Strategies for an Investment Property in Ohio

    Smart Financing Strategies for an Investment Property in OhioPopular television shows make real estate investing seem easy with guaranteed profits. What these shows don’t show you are the behind-the-scenes tribulations that investors must go through in securing and rehabbing properties.

    If you are new to real estate investment property buying, use these three smart financing strategies for an investment property in Ohio to reduce your stress and improve chances of profitability.

    3 Smart Financing Strategies for an Investment Property in Ohio

    1. Consider Financing That Includes Rehab Costs

    Most investment properties need some level of fixing. Even if you are purchasing the property to rent out, there will most likely be things you need to do in order to prepare the property for rental. Highly distressed properties may need a complete gutting and rebuilding.

    Factor all costs of rehab into your budget. If the cost is considerable, include a contractor’s estimate for the cost of remodeling the property. Seek a mortgage lender that funds loans that include construction costs. There are some smaller, niche specific lenders that do this. Even the FHA has a lending program that includes construction costs as part of one, complete loan.

    Not only does securing funding with these costs help ensure you have the money to fix the property; it also keeps the entire loan under one note. This usually keeps interest rates lower with more manageable payments. Keeping your own cash in hand is ideal whenever possible.

    2. Make a Large Down Payment

    This may seem like a no-brainer, but many new investors think that they can get into a property with 0 to 5 percent down. While there may be some lenders willing to extend credit on an investment property for these terms, the rates are generally higher and only offered to experienced investors with track records and other assets to back the property.

    Lenders view investment properties as the first place a person will “let go” of assets if financial hardships occur. Simply put, if you were to face serious financial issues, you would most likely keep making payments on your personal home and stall any payments in investment properties. This makes investment properties foreclosure higher risks, thus coming in with 20 percent or more is imperative.

    Not only will most banks require at least 20 percent on investment property, the more you put down, the more favorable your interest and loan terms become. Of course, you still need to maintain enough cash and savings to protect your own personal finances and be able to prepare the property for rental or sale.

    Smart investors often use a home equity line of credit on their own home to make a large down payment and then refinance the equity line on the new property, paying off their personal HELOC. This is leverage debt and a common strategy among real estate investors.

    3. Ask for Owner Financing

    An investment strategy not always considered is owner financing. With loans advertised by every financial institution, it has become common practice for buyers to get a loan through a financial institution. However, historically owners often financed property sales.

    You might be able to find great investment properties where owners are willing to finance the transaction. A situation where an owner has the property free and clear of a mortgage but is moving to downsize or perhaps inherited the property might be a situation where owner financing is a very viable option.

    It is always wise to ask if the owner is willing to finance. The structure usually is a short-term loan with a moderate down payment and monthly payments for a fixed period of time. These are great deals but can be hard to come by.

    IF YOU ARE INTERESTED IN SELLING YOUR Cincinnati & Dayton PROPERTY, PLEASE CONTACT US FOR A CASH OFFER. WE ARE EXPERIENCED REAL ESTATE PROFESSIONALS AND CAN CLOSE QUICKLY AND PAINLESSLY.