Episode 20: All About Renovation Loans with Dustin Swigart

In Episode 20 of Intelligent Equity, host Ryan Kiefer talks with Dustin Swigart of Prime Lending. Dustin explains why renovation loans are popular right now and why buying a fixer-upper is a big opportunity, particularly for millennials. You’ll also hear about some fun projects Dustin has helped finance and hear how easy it can be to finance this type of loan.

Episode Highlights:

Renovation loans are very popular right now.
There's a lot of aged inventory. In the U.S., more than 70% of single-family homes were built prior to 1950.
This is a great opportunity to buy a fixer-upper, build some equity, and customize it.
A lot of houses need TLC. It can feel like you’re entering a time warp with shag carpet and olive green appliances.
Someone bought a home for $17k, financed $320k in renovations, and the property was worth well over $400k when it was done.
Millennials are starting to buy fixer-uppers.
HGTV did some research on millennials showing they are more likely to buy a fixer-upper because of student loan debt.
There's an inventory issue on starter homes. There's probably two months or less of inventory.
If it's a perfect house it's going to get multiple offers and go over list price.
Dustin had a client who was buying a fireman's lodge. He converted it to a single-family residence. He put $130k into it and it was 4500 square feet.
There are low down-payment options.
The down payment is based on the purchase price plus renovation.
They typically have six months to complete renovation after closing.
Unlike a construction loan where you close upfront, it's a regular loan that they'll start making payments on.
They make inspections and make sure everything is being done per the scope of work.
If they can't occupy right away, they can finance mortgage payments into the escrow.
Dustin did a project in Newport in the central business district fringe. There was a single-family corner property that had been converted to a restaurant that someone wanted to convert back to a single-family home.
This property was 5500 square feet and they closed with close to 100k equity. They put in $180k in renovations.
There are opportunities out there for unique projects.

3 Key Points:

Renovation loans are still a hot topic both locally and nationally.
Millennials are more likely to buy fixer-uppers because of student loan debt.
Unlike a construction loan where you close upfront, a renovation loan is a regular loan that they'll start making payments on.

Resources Mentioned:

Ryan Kiefer: LinkedIn, Facebook, Website
Dustin Swigart LinkedIn

The episode Episode 20: All About Renovation Loans with Dustin Swigart from the podcast Intelligent Equity has a duration of 9:14. It was first published 17 Dec 09:00. The cover art and the content belong to their respective owners.

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Episode 26: Changing the Way You View Credit and Homeownership with Tahmeeka O'Neal

In Episode 26 of Intelligent Equity, host Ryan Kiefer talks with Tahmeeka O'Neal of the O’Neal Group. Tahmeeka shares how she helps a wide variety of clients make educated choices about real estate and repair their credit. Then hear Tahmeeka’s take on the current market in Cincinnati.

Episode Highlights:

Tahmeeka O'Neal is the CEO and Founder of the O'Neal Group LLC. She has been in real estate for about two years. She is also a notary.
Tahmeeka hopes to change the way her clients view credit and homeownership.
They focus on credit repair as well as the real estate side of the house.
Many people don't have the information they need to make educated choices.
She takes a personal approach with her credit repair clients.
She meets clients where they are and dives in from there.
It has been very busy since Tahmeeka has taken her business full-time.
Tahmeeka is excited to give back to the community.
Tahmeeka shares what she is seeing in the current market.
Houses are going very quickly and now is a great time for sellers.
Now is a good time to find out the value of your home and whether listing would be a good option for you.
It is very competitive for buyers right now.
Be prepared to position yourself well in this competitive environment.
She helps her clients stand out in multiple offer situations.
It very much is a seller's market, especially in the lower price points.
If you're thinking about moving up, you can get a good deal on that house because there's more inventory in the higher price range.
Preparation is the key to success. Know the market.
Pick the best professionals to work with.
It's not a good time as a buyer or seller to try to go it alone. Reach out to a professional.

3 Key Points:

As you become more informed, more real estate options will be open to you.
Cincinnati is currently a seller’s market with very low inventory at lower price points.
Given today’s competitive atmosphere, reach out to a professional when you’re looking to buy or sell. This is not the time to do it yourself.

Resources Mentioned:

Ryan Kiefer: LinkedIn, Facebook, Website
Tahmeeka O’Neal website, Facebook, LinkedIn

Episode 25: Out-of-the-Box Financial Planning During COVID-19 with Ashok Ghildyal

In Episode 25 of Intelligent Equity, host Ryan Kiefer welcomes back Ashok Ghildyal, Loan Officer at PrimeLending to discuss the effects of the COVID-19 outbreak on the real estate and mortgage lending business.

Episode Highlights:

Ashok Ghildyal has been in the financial industry for over 40 years.
The biggest difference that Ashok sees between past large market events and what is currently happening with the COVID-19 outbreak, is that nothing is fundamentally wrong with the economy. In fact, the economy coming into the COVID-19 outbreak was very strong.
Ashok feels that once the situation surrounding the virus stabilizes, we should be able to quickly get back on the economic track.
However, there is pain and uncertainty surrounding how long the outbreak is going to last.
Refinancing and debt consolidation loans may be in some consumers best financial interest at this time.
Ryan Kiefer feels that we are moving towards a recession, but believes it will be cyclical instead of structural.
That difference means it won’t stretch out 4-5 years, but instead will be short and deep.
Ryan feels that the economy will bounce back quickly, and the housing market may be insulated from the downturn.
There are still a lot of buyers in the housing market, and with interest rates still at an all-time low, that’s going to encourage those buyers.
In the $150-250k market, where there is limited inventory and homes are going fast, a lot of sellers are just listing their homes as-is, without any updates or changes.
However, if there aren’t as many buyers entering the market, that may force sellers to go back to staging and updating their homes before going to market.
Open houses may cool off, but technology can reduce housing market interruptions through virtual showings and e-signings.
People often correlate “Wall Street” and “Main Street”. Ashok feels that Wall Street is not always indicative of the underlying strength of the economy.
Younger buyers may not be as invested in the market yet, so they may not be feeling the “wealth effect” of the stock market, and their home purchasing plans may not be affected as long as their employment is insulated.
Ashok gives an example of re-financing on a $200k home. Refinancing was able to save the clients around $160 a month, but even more of interest that most consumers don’t take into account, is refinancing removed $35-40k of paid interest.
The overall benefit of refinancing isn’t limited to just cash flow and reduced monthly payment, but increased net worth and reduction in interest paid over the life of the loan.
Ryan delves deeper into an example to show how refinancing can benefit homeowners.
Ashok feels that refinancing may be the best investment decision people can make, at this point.
This is a great time to do some out-of-the-box financial thinking.

3 Key Points:

COVID-19 has caused fear and uncertainty related to financial markets, but this is a great time to do some out-of-the-box financial thinking.
Younger buyers may not be as invested in the market yet, so they may not be feeling the “wealth effect” of the stock market, and their home purchasing plans may not be affected as long as their employment is insulated.
The overall benefit of refinancing isn’t limited to just cash flow and reduced monthly payment, but increased net worth and reduction in interest paid over the life of the loan.

Resources Mentioned:

Ryan Kiefer: LinkedIn, Facebook, Website
Ashok Ghildyal website, LinkedIn, Facebook

Episode 24: Forecasting 2020 Real Estate Inventory with Michael Wallet

In Episode 24 of Intelligent Equity, host Ryan Kiefer talks with Michael Wallet of Star One Realtors. Michael shares what he thinks will happen with the local housing market in 2020, and why inventory levels are at an all-time low. Learn how the demographics for first-time buyers have changed and why Michael believes there’s no recession in sight.

Episode Highlights:

Michael Wallet has been in real estate for fifteen years. He began at age nineteen, flipping homes with his father.
2020 will be similar to 2018 and 2019 for the real estate market. There will be less inventory.
There’s already 15% less inventory this year vs. last year so far.
Supply is low and demand is high.
Sellers are selling at prices that are similar to 2005-2007.
Inventory levels are at an all-time low.
In the first-time buyer segment, there's very limited inventory. At the higher end there's a little more inventory.
Many first-time buyers learned a lot from the recession and are not stretching beyond their means to buy homes they can't afford.
It seems like an early spring market this year. First-time buyers are trying to get ahead of the curve a little bit.
A recent article said that millennials buy homes later. The average age of first-time homebuyers is 33.
There are four to five years coming up with demand.
In the current market, Michael encourages prospective buyers to jump on properties if they are interested.
These buyers do not have time to think about it because the market is as competitive as ever.
People don't realize that sellers are incorporating closing costs into the purchase price.
If you can, pay for the closing costs yourself so that you're not asking for more concessions.
There are many different grant programs to help first-time homebuyers.
People used to stay in their homes for seven years on average. Now it's up to thirteen years, which is part of why we have this inventory shortage.
Michael is committed to serving the community. He is currently coaching middle school basketball.

3 Key Points:

Inventory is at an all-time low and the market is very competitive.
First-time homebuyers are older than they’ve been in the past. There are four to five years of ongoing demand coming up.
Advise your prospective buyers to get started right away when they’re interested in a property.

Resources Mentioned:

Ryan Kiefer: LinkedIn, Facebook, Website
Michael Wallet website, Facebook, LinkedIn

Episode 23: Protecting Your Income with Todd Domsitz

In Episode 23 of the Intelligent Equity Podcast, host Ryan Kiefer talks with Todd Domsitz of Allstate Insurance. Todd shares why it’s important to protect not just your assets with proper insurance coverage, but also your income. He describes a special monthly income term policy that provides a way for your family to keep paying your mortgage even when faced with unexpected life events.

Episode Highlights:

Todd is a financial specialist. He helps people with life insurance, retirement planning, disability and long-term care planning.
He spent twenty years with New York Life and came to Allstate eight years ago.
He helps people plan anything that would replace their income when their ability to earn that income stops.
They have 50 other partner companies to help customers find the right product.
If someone comes to him and wants to roll over a 401k to an IRA, can they do that?
Absolutely. He does a lot of rollover business.
Allstate is in the business of protecting people's assets so they do a lot of retirement planning.
Allstate came up with a product with a monthly income term policy.
Sometimes when you hand someone a lump sum when paying out a life insurance policy, they don't know what to do with it.
The monthly income term product provides a small lump sum and then provides a monthly income over a two, five, or ten year period.
This is very comparable to purchasing term life insurance.
Imagine your family is used to having 5-10k per month and then you pass away. This product allows them to keep receiving that income to continue to pay bills.
Sometimes they'll combine that with a bigger policy so you can pay off your mortgage and bills but still provide an income stream.
This type of policy works particularly well for surviving spouses who are not of retirement age.
You want to make sure that you have short-term or long-term or preferably both short-term or long-term disability insurance.
People will spend $1,000 per year to protect a $40,000 car or $1,000 a year to protect a $300,000 home but they spend nothing to protect their income.
Generally, disability insurance costs no more than your auto or home insurance.
There's a likelihood that you will become disabled for at least a short period between now and age sixty-five.
We know for certain that you are going to pass away at some point. Life insurance is a necessity.
You've got to make sure you've got an income stream that can ensure that your mortgage can be paid.
They sit down with people on a regular basis to make sure they can hang on to assets they are accumulating.

3 Key Points:

Protect your income with short and long term insurance options.
A monthly income term plan provides an alternative to traditional life insurance.
Insurance will help you retain the assets you are accumulating.

Resources Mentioned:

Ryan Kiefer: LinkedIn, Facebook, Website
Todd Domsitz website, Facebook, LinkedIn

Episode 22: Challenges and Opportunities for First-Time Buyers with Chris Crowley

In Episode 22 of the Intelligent Equity Podcast, host Ryan Kiefer talks with Chris Crowley of Comey & Shepherd Realtors. Chris shares his thoughts on what kinds of challenges and opportunities are out there for first-time buyers in 2020. You’ll also hear about how home affordability has actually improved because renting is currently more expensive than owning.

Episode Highlights:

Chris Crowley grew up helping his father who was a contractor. This gave him exposure to a behind-the-scenes view of renovating.
He has been an active agent for 14 years with Comey and Shepherd.
First-time homebuyers are up against a lot in the current market.
It’s a very competitive market. First time buyers don't have time to think about it. You have to go into a home, look at it, and make your decision while you're there.
Local starter homes start between 100-250k.
What are the challenges or opportunities currently for move-up buyers?
Most people in the mid-range level aren't in a position to buy without selling.
Sellers take a risk when accepting an offer with contingencies.
Typically winter is a slower time of year, but there are a ton of buyers out there right now.
The traffic is up over 12% year over year in terms of buyers out looking at homes, particularly in the starter home market.
What advice does Chris have for sellers who would like to wait for the spring market?
Chris feels that the weather is a huge factor in when the spring market will take off.
If the weather holds out how it is right now, the spring market is right around the corner.
The spring market will be competitive and it is already gearing up.
Buyers that are out looking at this time of year are typically serious.
If you get a showing request this time of year, it's a serious buyer.
Chris is hoping for a very successful, prosperous year for everybody.
Home affordability has actually improved because rates are back near historic lows.
If you own a starter home, you can get top dollar for that home right now and probably get a good deal on your move-up house.
With rates being so low, rents are extremely high. It's a perfect time to buy.
You're going to save money by owning vs. paying high-dollar rent.
Your median rent takes up 28% of the median income in this country. Buying a home takes up 17%.

3 Key Points:

The current market is extremely competitive for first-time homebuyers.
There are a ton of buyers looking right now. The spring market will take off soon.
Home affordability has improved with unexpectedly low interest rates.

Resources Mentioned:

Ryan Kiefer: LinkedIn, Facebook, Website
Chris Crowley website, Facebook, LinkedIn

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