the

the
www.reintn.org
November 2014
$40 ANNUALLY
REIN is a community of local real estate entrepreneurs who gather to learn, share and support one another and the industry.
State of the Market – Where You Need to Invest (and Avoid)
Today’s market is up – or is it down temporarily? Infill building has brought new laws from Nashville’s Metro Council, and nearby
cities are taking note. Should you get into that? Is fixing and flipping still a good money-making strategy? What do today’s buyers
want? WHO are today’s buyers? Do I even know what they look like? And how they are different than buyers of 18 months ago? Is
Buy and Hold Renting in favor now - or on the way out?
Get answers at this next REIN General Meeting on Monday, November, 10, 2014 from 7 to 9 pm. We’ll
have a panel of seasoned professionals to discuss how their clients are ‘playing the market’ – and answer
audience questions on how you can, too.
Yogi Dougher, Lender for First Advantage Bank, Investor
Yogi helps real estate investors with customized financing options for their particular situation,
considering their overall picture for approval purposes, without the use of product boxes. Yogi serves
investors from start to finish: initial inquiry, applying, underwriting, processing, and closing the loan.
Yogi oversaw nearly 100 projects last year, totaling $40 million.
Bob Potter, Investor, Developer, and Builder
An investor in Nashville for the past 15 years, Bob has extensive experience in rentals, rehabs and
new construction. Bob’s recent focus is building new construction, urban infill homes in emerging
neighborhoods. Bob is a licensed General Contractor, Founder of Kudzu Homes, and a partner in the
real estate brokerage RENEW Real Estate Services.
Jeff Ley, Real Estate Agent, Wholesaler, and Investor
Jeff is a full-time Realtor and Broker with 7 years in the business. As an agent, Jeff helps buyers and
investors to locate distressed properties, including HUD, Fannie Mae, Freddie Mac, VA, REO bank
foreclosures, and short sales. Jeff helps sellers minimize their days on market and maximize their sale
price. Jeff is a fellow investor with experience in rentals, renovation, and wholesale transactions.
Ronda Miller, Owner of Ronda P Miller Interiors
For 15 years, Ronda has delivered intelligent design and interior finish selections for specific investor
markets (and ROI). Ronda helps investors with Color Consulting, Home Rejuvenation for sale or resale, and Current Design Trends
with Modern Function. Ronda
REIN General Meeting
helps investors use design to get the
Monday November 10, 2014 5:30 to 9:00 pm
most money out of their projects by
Main Presentation at 7:00 pm
staying current on the latest trends.
FiftyForward Center
174 Rains Avenue
Nashville, TN 37203
FREE for REIN members; $25 for Meetup members & guests
Reserve your dinner by November 6 - only $8!
www.reintn.org/dinner
Join us Monday, November 10 at 7pm.
Be in the room on time and bring
your REIN name tag for prize
drawings.
Trey Cain 615-778-9590
Phillip Poynor 615-550-5565
United Structural Systems
Rob Myers
www.ustn.com · 615-227-2275
First Advantage Bank
Yogi Dougher
615-400-0526
Ace Exterminating
Will Hadden
615-876-7185
HICKS HVAC and Weatherization
Jeremy Hicks
615-625-2135
Perry Law Firm
Steve Perry
615-431-9649
Berto Home Improvements
Norberto Flores
615-578-9014 Integrity First Realty Group Josh Stewart 615-681-5267
Primary Residential Mortgage
Shaun Lyons
615-590-1557
Bob Parks Auction
Adam Hensley
931-224-0308
IRA Innovations
Mike Todd
615-794-8961
Renew Real Estate Services
Bob Potter
615-800-8490
Belle Meade Title & Escrow
Robert Notestine
615-297-1568
iServe Residential Lending
Kent Secker
615-663-1259
Residential Investment Advisors
David Childers
615-479-8737
Chandler Reports
Wendy Greenlaw
877-711-0200
Mac McRae Mr. Goodroof 615-824-8100
Stone, Rudolph Henry, PLC
Henry Martin
615-376-8101
Clinard Home Improvement
Keary Gilbert
615-399-3066
McLemore Auction Co.
Stephen Aleman
615-517-7675
Tandem Realty
Mark Hill
615-329-9988
Courthouse Retrieval System
Kirsten Elkins
615-202-3946
Mi Casa Solutions, LLC
Flor Melgar
615-582-1300
TyJax Builders, Inc.
Larry Derossett
815-674-8050
Cumberland River Group
Mark Miller
615-319-7864
Movement Mortgage
Ron Greenfield
615-671-9156
Window World
Michael Hoover
931-802-6969
DirectBuy of Middle Tennessee
Rick Murphy
615-373-4575
Nashville Title Insurance Corp
Andy Maloney
615-385-5944
First Call Claims
Ryan Willis
865-719-2569
Natchez Trace Insurance
Jene-Marie Marks
615-353-1992
Become a sponsor or place an ad. Call Rachel Sullivan 615-885-5454 management@reintn.org
NEWSLETTER
BOARD OF DIRECTORS
Mary Wester
Robert Mohon
Sandra Lush
Rachel Sullivan
Debi Matthews
Joseph Branton
William Sugg
Mary Wester - President
Andy Flanigan - Vice President
Larry Jones - Treasurer
Robert Mohon - Past President,
Programs Chair
Carol Plemons - Past President
Submit comments and articles to editor@reintn.org. 2
Bev DeLong - Membership Chair
Debi Mathews - Library Chair
Sandra Lush - Education Chair
Scott Nicodemus - Vendor Chair
Justin Cutler
Jeff Ley
CALENDAR OF EVENTS
November
3
4
10
13
17
18
18
20
December
1
2
2
8
11
15
16
16
18
November 10, 2014
Dinner
Rutherford County Subgroup
REIN Lunch Network – Dalt’s
REIN General Meeting @ FiftyForward Center
Wholesaling Subgroup
Landlording Subgroup
REIN Lunch Network – Dalt’s
Fundamentals of Real Estate Insurance / Kevin Hale
Williamson County Lunch – TBA
5:00 pm – 6:30 pm
Register by Thursday, 11/6/14
www.REINtn.org/dinner $8
bREakout $essions
5:30 pm – 7:00 pm Networking
Bring business cards and your badges! Look for stars on their badges
and match your star with theirs. Learn to connect with others on a
personal level one on one or in a quick format. Make the most of
your time to meet people; grow your investing by setting up lunches
or going out for late supper or coffee after the meeting. Ask what
you can do for them to help them be successful.
Rutherford County Subgroup
REIN Lunch Network – Dalt’s
Deals, Deals, Deals
REIN General Meeting @ Fifty Forward Center
Wholesaling Subgroup - cancelled
Landlording Subgroup
Deals, Deals, Deals
REIN Lunch Network – Dalt’s
Williamson County Lunch – cancelled
5:30 pm – 6:15 pm Apps for the iPad, iPhone and Smartphones /
Wayne Woodson
Real Estate investors have help for investing from their smartphones
and mobile devices. Learn about those apps—many that are FREE.
Wayne is a real estate investor and agent. He will share info on the
apps he uses and lead discussion of apps used by others in the group.
DEALS, DEALS, DEALS
The vision.
An opportunity to learn where investors find deals, a place for people
to sell deals, and to learn about the mechanics of various sorts of deals
(lease options, using transactional funding, attracting buyers, ins and
outs of wholesaling, more). We bring in people, do interviews in front
of the group, talk about deals we are seeing in the market. Often we
have ‘state of the market’ type of discussions - talk about trends, more.
Each meeting we have an outline.
My intro - who I am, purpose of the group, etc. Round Robin
introduction—name, what I do, and a need (what need to grow my
real estate biz/education or who I need to meet next sort of thing)
Main Topic: Sometimes we will bring in speakers on topics like closings,
contractors, insurance, appraisers. Other times we talk about what the
group wants to talk about - answer their questions. Other times we go
look at houses (which are the most beneficial to people).
At the end we have 30 minutes of open networking followed by dinner
and late networking.
5:30 pm – 6:15 pm Meet Councilwoman Megan Barry—
Discussion on Increasing Term Limits and Reducing Council
Members / John Brittle
Should Metro Council continue limits to 2 terms or increase to
3 terms. Do you believe a smaller number of councilpersons is
better? Discussion and debate. How would it affect your working
on rezoning and other real estate issues? How do you feel about it
personally?
5:30 pm – 6:15 pm Genius Bar – Case Study Double Closings
and Transactional Funding / Trey Cain and Mary Wester
Come with your questions about double closings and talk one on
one with real estate attorney, Trey Cain. Also Trey will share with
the group a real same day “double’ closing from beginning to end
and how they get funded.
5:30—5:10 and 6:15 pm – 6:40 pm How to Make Money in
Today’s Real Estate Market — Guests & New Members
This first of a 3-part series is for the investor who wants to profit
with single family houses. Learn how and where to find deals, what
to say to sellers, and a simple way to keep track of them for proper
follow up. Forms used in this topic will be available for attendees.
MAIN PRESENTATION
7:00 pm – 8:45 pm Panel Discussion
REIN LATE NIGHT
Spend a few minutes networking during the breaks or in the lobby
and make plans for late supper or coffee in Belmont / Hillsboro or
12 South hot neighborhoods. Many of the members head out to
M.L Rose on 8th Avenue after the meeting. See you there!
3
R E A L E S TAT E , T I T L E I N S U R A N C E , B A N K RU P T C Y L AW Y E R S
EAST NASHVILLE
COOL SPRINGS
1100 Douglas Avenue
Nashville, TN 37206
7105 Crossroads Blvd., Suite 101
Brentwood, TN 37027
FAX
OFFICE
615-807-3456
615-778-9590
www.cainpllc.com
|
www.tennesseetitlellc.com
4
WHERE DO YOU FIND GREAT DEALS ON APARTMENTS? by Anthony Chara
I get this question a lot, especially, during or just after a presentation
showing an apartment complex illustrating a ‘cash on cash’ return in
excess of 20%.
through extensive training on commercial property, plus, they must
have a proven track record of closed deals or consultations showing
extensive commercial knowledge and they must pass a comprehensive
examination. I consider a CCIM equivalent to a PHD. By the way, you
can also find CCIM’s at www.CCIM.com too. It’s estimated that only
6% of the roughly 125,000 commercial brokers out there have a CCIM
designation.
If you went to a Commercial Broker and told them you were looking
for properties with a 20% COCR, they’d do one of two things; 1-They’d
tell you they would buy the property themselves if they ever found one
with a 20% COCR or 2-They’d hang up on you because they’d think
your expectations are unrealistic.
Once I find 5-6 brokers in a given market, with or without the CCIM
designation, I call them to introduce myself. I ask them about the
market conditions, recent sales in the area and their own experience
as a commercial broker. It’s amazing how much information you can
get when you ask the right questions. You also get a pretty good feel for
the person about whether or not you see yourself having a long-term
relationship with them.
You probably won’t find an Apartment complex advertised with a 20%
COCR. Just like the broker said, if it fell into their lap, they’d buy it.
However, you can increase your chances of finding some great deals by
doing a few things differently.
First off, there’s no big secret in ‘finding’ Apartment complexes for
sale. Start by using the same vehicles most investors use. For instance,
you can search through Loopnet.com or go to any of the major or
regional Commercial Brokerage web sites such as Marcus & Millichap
(MarcusMillichap.com), CB Richard Ellis (CBRE.com) or Sperry Van
Ness (SVN.com) just to name a few. There are many many more out
there.
Once I have a good feel for 3-4 of the agents I’ve spoken with, I give
them the criteria I’m searching for in a complex. My criteria will include
number of units, unit mix, minimum Cap Rate, price range, the quality
of the complex (A, B or C) and area of the city. I may even mention that
I’m looking for the owner to do some or all of the financing. I follow-up
my phone conversations by emailing or faxing my contact information
and criteria to the brokers. Then, I phone or email the brokers every
1-2 weeks to stay in contact with them. Since the brokers know exactly
what I’m looking for it makes it easier for them to find something that
fits my criteria. The ones that bring me deals I take care of. Obviously,
they get their commission, but it’s the extra little things I do that I
believe makes a difference such as sending them a restaurant gift card
to take their spouse or significant other out for a night on the town
at my expense or maybe tickets to a local sporting event or bottle of
wine. That way, I am always in the front of their mind anytime a good
deal comes across their desk. You’ve probably heard the term ‘Pocket
Listing’. Well, I want to be a ‘Pocket Client’. When the broker gets a
new listing, I want to be one of the few clients they call first, sometimes
before they even release the details to other brokers in their own office.
And that’s the key to finding great deals.
You can also peruse local newspapers in the market you’re interested
in. Remember that not all papers are created equal. Some newspapers
will advertise commercial properties in the business section, not
the classifieds. Another paper no one thinks about is the Wall Street
Journal. They have both national and local properties advertised for
sale.
Another way to find Apartments for sale is to ask Property Managers
or Commercial Financiers that work in the area you’re looking to
purchase in. Often times, they know owners who are looking for
another property and have to sell their first one to move on or they
know someone who’s just ready to retire.
These are just a few of the sources I use. More are given in my workshops
and boot camps. The key to getting great Apartment deals may start
with the information above, but it ends with the information below.
If you think about it, everyone out there has access to the same sources
for deals, but it’s the people who have nurtured and cultivated their
relationship with the broker that reaps the bumper crop! They will
even tend to go to bat for you with the seller if you’re looking to do
something other than just put down a traditional 20%-25%. They will
be in your corner helping you explain to the seller why it would be
better financially for them to carry-back some or the entire purchase
price then to just sell the property outright and make you bring in new
financing.
Like I stated already, there’s no big secret in finding Apartment
complexes for sale. The key is to find a great deal and here’s how I do it.
The first thing I decide upon is a market in which I want to purchase.
I may determine the market based on economic factors such as job
growth or an expanding economy in that area. I may decide upon the
market just because it’s a place I’d like to visit on a regular basis. The
next step is to interview at least 3-4 good commercial brokers in that
market and create a long-lasting, mutually beneficial relationship with
at least one or two of them.
Even in the commercial world, it’s about relationships. Once you have
those relationships established you have a much greater chance at
turning an average deal into a great deal. A 10% COC return into a
20% COC return. That relationship just helped you double your cash
flow. How much is that worth to you?
Here’s what I do and how I use my research. Preferably, I want to find
a commercial broker that has a CCIM designation. CCIM stands for
Certified Commercial Investment Member. Most CCIM’s will list this
designation in their internet and newspaper ads. CCIM’s have gone
© 2007-2012 Apartment Mentors LLC
Disclaimer
The Nashville Investor is published monthly by Real Estate Investors of Nashville (REIN), a not for profit association, helping its members learn, grow, and prosper as real estate investors.
REIN does not endorse any person or organization or the advertisers appearing in this newsletter. Its programs are designed to be educational, motivational, and enjoyable. Speakers
primarily discuss techniques and methods that work for them. Whenever actions involving purchases, sales, or tenant relations are being considered, rely upon the advice of your real estate
professionals---your lawyer, accountant, and realtor. Always seek competent legal advice concerning your specific situation.
5
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I Buy and Sell Vacant
(Or Soon To Be Vacant)
In-fill Residential
Building Lots
Contact Ed Meek
615-506-9321
EdHasProperties@hotmail.com
In Memory of
Carol Boo
Yogi Dougher
Senior Vice President
Business Banking Market Manager
First Advantage Bank
615-400-0526
Yogi.Dougher@fabk.com
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Supporting REIN as a corporate sponsor for over 6 yrs.
Supporting REIN as a corporate sponsor for over 6 yrs.
750 Old Hickory Blvd; Building Two Suite 150; Brentwood TN37027
6 750 Old Hickory Blvd; Building Two Suite 150; Brentwood TN 37027
REIN
REIN PHOTO CONTEST
CLASSES
Tell us about your
real estate
with your pictures!
Register
onlinebusiness
www.reintn.org/calendar
Discounts for early registration
We are looking for interesting, colorful high-resolution pictures
that epitomize allREIN
aspects
of real
estate Trust
investing.
We want to see
Center,
Truxton
Building
shocking before
and
after
photos
of
that
bathrooms,
kitchens,
4525 Harding Pike #200, Nashville, TN 37205
finished retail-ready homes, apartment buildings, storage facilities,
etc. Get creative and show us what your real estate investing looks
Fundamentals of Real Estate Insurance / Kevin Hale [PHP core]
like - both the good and the bad.
Tuesday November 16 6:00 pm – 9:00 pm
Registration Members
WeEarly
are redecorating
the REIN $20
Education Center, and the finalists
Meetup
and
Guests
$40 on the walls. The winner will
photos
will Members
be printed
and
displayed
be determined by the REIN Board and will receive bragging rights
andReal
oneEstate
year free
membership
extension
to REIN!
Emailin everything
Investors
need insurance.
There
is liability
you do. Your
properties
mustaflanigan@musiccityrehabs.com
be covered. You must be coveredbyto
submissions
to Andy
Flanigan:
protect
you from anything that might, and can, happen. Umbrella
March
31, 2014.
policies are one way, but they don’t always cover everything.
By entering the contest, entrants grant REIN, and those authorized by REIN, a
royalty-free, worldwide, perpetual, non-exclusive license to display, distribute,
We will
learn
what
kind of
insurance
you need,
how
should
reproduce
and
create
derivative
works
of the entries,
in whole
or much
in part,you
in any
media now existing or subsequently developed, for any educational, promotional,
have,
and
just
what
it
will
cover.
publicity, exhibition, archival, scholarly and all other REIN purposes. Any
photograph reproduced will include a photographer credit as feasible. REIN will not
be required to pay any additional consideration or seek any additional approval in
Do youwith
ever
hire
someone to cut your grass, or do odd jobs? When
connection
such
uses.
you rehab a house, or put a new roof on your rental, do you ever buy
the new fixtures you want, or go buy the shingles you want the roofer
to put on? You could be at risk! You could be liable if the workers get
hurt on the job.
You’re invited to the
REIN LUNCH
NETWORK
Kevin Hale will teach us if it is necessary for you to have Workers
Compensation insurance. We will learn the exposure we have as real
estate investors. You can’t afford to miss this class. One lawsuit could
wipe out everything you have worked so hard for. Don’t let it happen
to you.
WHEN:
1st & 3rd Tuesday 11:15 - 1:00
REAL ESTATE
ENTREPRENEUR
WHERE:
Dalt’s Grill
“Sun” Meeting Room
38 White Bridge
Road
CERTIFICATE
PROGRAM
Nashville, TN 37205
REIN classes, homes tours, subgroups and Saturday seminars are a
business education in real estate entrepreneurship. Where can you go
WHO:
ACTIVE real estate investors
in Nashville or the Southeast to get a degree with a major in real estate
and not pay tens of thousands of dollars for that degree?
WHY:
Share deals to sale or purchase.
Discuss
trends
and hotHousing
topics Provider
REIN offers a certificate
program,
Professional
(PHP), for a fraction of
cost.
Some classes are only $20 for members
inthe
real
estate
since our members donate time and we are a nonprofit organization.
You can
earn a certificate butto
more
importantly
can learn from
RSVP
www.REINTN.org
register
FREEyou
Questions?
actual investors who can share real life school of hard knocks lessons.
LunchWest@REINTN.org
Insights
If you
aredamage
already
volunteer
to lead
discussion or class
Prevent
water
by experienced,
putting pans under
water heaters
anda washers when
replacingsession.
or installing
any floor,
including
the are
main,
or breakout
Wethem
oftenonlearn
more
when we
giving or being
and draining them to the crawl space or outside. Codes now require
questions.
this asked
on upper
floors for washers, but washers and water heaters can
still cause damages on any floor.
BRING BUSINESS CARDS & COPIES
OF DEALS
Also,Volunteer
lengthen the
chain in the
tank
so that
the handle
forflapper
committees
andtoilet
when
you
volunteer
at the
must be held for the toilet to flush. This will prevent overflow with lowyou
can
earn
FREE
classes
as
well
as
develop
relationships
flow toilets. However, you must explain to the user the rationale.
more from other real estate investors / entrepreneurs.
meetings,
and learn
Certificate Info at www.reintn.org/PHP
7
7
4525 Harding Road, Suite 200
Nashville,
TN 37205
Home Depot
2% www.reintn.org
Have you received your rebate?
Home
Depot 2% rebate
visit www.reintn.org/homedepot
Have your received your $$?
Sign up www.reintn.org/homedepot
Scan this
Scan
this
code to
code
to visit
visit
our website!
website!
our
NEW!! DEALS, DEALS, DEALS group, see p. 3
@reintn
YOU’RE INVITED TO LUNCH
VOLUNTEER!
Bring business cards, deals & flyers
We need people to help!
Williamson County Lunch
3rd Thursday
November 20 (no December lunch)
Carrabba’s Restaurant
553 Cool Springs Blvd., Franklin, TN 37067
Cost - Lunch
Sponsor: The Terry DeSelms Team
REIN Lunch Network
1st Tuesday
November 3 and December 2
Dalt’s – Lion’s Head Shopping Center
38 White Bridge Rd. Nashville, TN 37205
Cost - Lunch
Sponsor: Tennessee Title & Escrow Affiliates
Register www.reintn.org/calendar
™™
™™
™™
™™
™™
Registration at the monthly meeting
Greeters at monthly meeting
Newsletter and website content contributors
Newsletter editor
Corporate sponsor committee members
Qualifications
™™ Trustworthy, dependable, positive attitude
™™
™™
™™
™™
Compensation
Meet other investors and build relationships
Possible deals may result
Help others build their businesses
Learn real estate investing with a new REIN friend
Karma comes back to you!
PRICELESS!
Let us know your talents
Sign up with Andy Buford, Volunteer Coordinator
volunteer@reintn.org
www.reintn.org/volunteer