Intelligent Equity

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:

1. As you become more informed, more real estate options will be open to you. 
2. Cincinnati is currently a seller’s market with very low inventory at lower price points.
3. 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

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:

1. 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.
2. 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.
3. 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

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:

1. Inventory is at an all-time low and the market is very competitive.
2. First-time homebuyers are older than they’ve been in the past. There are four to five years of ongoing demand coming up. 
3. 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

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:

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

Resources Mentioned:

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

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:

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

Resources Mentioned:

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

In Episode 21 of Intelligent Equity, host Ryan Kiefer talks with Shelley Parks of Coldwell Banker Heritage. Shelley provides some great tips about lot selection and how to finance a new build. You’ll also hear how new construction factors into the current inventory. 

Episode Highlights: 

• Shelley has been selling real estate for over fifteen years. She immediately began in the new construction market.
• A few years ago Coldwell Banker launched a global luxury division. They went into every market and figured out what a luxury property is in that market.
• In Cincinnati, luxury is defined as $500k and above.
• She represents Clemens Companies right now. She does the marketing and sales for them while also being a realtor for Coldwell Banker.
• Lot selection is a huge deal.
• Everyone always asks which comes first, designing your home or picking the lot. You need to have both in mind.
• These custom homes do take longer. Once your design is complete and you're ready to start, you're probably looking at a nine-month time frame.
• Sometimes lots are opened up by developers on a case by case basis.
• Lot selection is very important because you may have a dream home in mind that may not be conducive to the lot you choose.
• Builders can let you know any limitations a lot might have.
• Most custom builders will do the construction loan.
• The builder she works with will carry the construction loan for the buyer but wants ten percent down on the complete project.
• Construction loans are now easy to come by.
• There's not as much inventory as we'd like to see.
• A lot of people are leaning more towards building because they can now position it wisely.
• Many people are scared to list because they fear they won't find a house they like to move into.
• The market looks like it will stay in a good place. Interest rates are still very good.
• The key is finding home sites. Shelley is hoping more developers come out and find more land.

3 Key Points:

1. Lot selection is very important when you’re building a new home.
2. Construction loans are now easy to come by. Most builders will do the construction loan.
3. With limited inventory, many people are choosing to build because they can position it wisely.

Resources Mentioned:

• Ryan Kiefer: LinkedIn, Facebook, Website
• Shelley Parks website, Facebook, LinkedIn
• Clemens Companies

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:

1. Renovation loans are still a hot topic both locally and nationally.
2. Millennials are more likely to buy fixer-uppers because of student loan debt.
3. 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 

In Episode 19 of Intelligent Equity Podcast, host Ryan Kiefer talks with Matthew Pesler of J.M. Insurance. Matthew will help you understand how important it is to get protection that will cover the things that are most important to you. You’ll also learn more about how to find coverage for short-term rentals and hear Matthew’s advice on staying in touch with your insurance company as you make changes to your home.

Episode Highlights: 

• Matthew has been working in the insurance industry for two years. He has an extensive sales background. 
• J.M. Insurance handles Kentucky, Indiana, and Ohio. They have partners elsewhere.
• J.M. primarily focuses on auto, home, and life insurance.
• They are currently partnering with many mortgage brokers and realtors, which is driving growth.
• Don’t get held up on price.
• Find an agent you can meet with face-to-face and help them learn what’s important to you.
• When an agent knows what’s important to you, they can help you get the proper protection.
• The price of premiums goes up and down.
• Often in life, you get what you pay for.
• When it comes down to Airbnb, lots of people are choosing to stay in homes instead of hotels.
• Perks of staying in a short-term rental include more space for large groups, kitchens to cook in, free parking, and proximity to local attractions.
• Rules and regulations for short-term rentals are constantly changing in Ohio.
• For example, in Tennessee you need a short-term rental permit to rent out your property short-term. In Ohio this is not required.
• The rules for insurance coverage vary based on whether you live in the home you’re renting out or not.
• What companies will cover, and how they’ll cover it varies, just as it varies with regular insurance.
• Make sure you’re taking advantage of annual reviews.
• Tell your insurance company every time you make an upgrade to your home. This will often lower your premium.
• If you do upgrades, get it protected.
• If you have a basement, make sure you have a water backup.
• Get protected the right way.
• Insurance is built for catastrophic claims.

3 Key Points:

1. Make sure you disclose what’s important to you to your insurance agent so they can make sure you are properly protected.
2. Local regulations are constantly changing with Airbnb and short-term rentals. Follow the rules and regulations for your area.
3. When you make repairs or upgrade your home, let your insurance company know right away. 

Resources Mentioned:

• Ryan Kiefer: LinkedIn, Facebook, Website
• Matthew Pesler LinkedIn, Facebook, website 

In Episode 18 of Intelligent Equity Podcast, host Ryan Kiefer talks with Bryan Frodge of Keller Williams in Florence, Kentucky. Bryan provides great insight into getting top dollar for your home by making smart choices about repairs and renovation. Learn an important question you should always ask your agent, as well as reasons you should consider selling your home in this hot market. 

Episode Highlights: 

• Bryan retired from the Covington Police Department after serving for 20 years.
• His niche is flipping houses, but he also runs a full-service real estate team.
• He employs a full-time crew that renovates and flips houses.
• If you’re going to sell, now is the time to get top dollar.
• It may not be that way next year.
• Bryan’s team can come to your house and provide a full assessment of where you can renovate to help you get top dollar for your house.
• Many people are lost about where to begin with repairs.
• Unfortunately, just because you put $20k into paint and carpet, that doesn’t mean you added that money to your home’s value.
• This is why it is such a benefit to speak with professionals that can help you maximize the money you spend on renovation and repairs prior to listing.
• You need to ask your agent how you're going to get the maximum dollar without putting too much up front.
• Bryan’s sweet spot is the first time homebuyer. 
• He has flipped over 50 houses.
• The most fun part of flipping homes is carpet installation because that’s when the team knows they are about to put the house on the market.
• Many of the team’s homes have been selling before they hit the market.
• Bryan is very proud of his team, his crew, and their workmanship.
• The Frodge Team consists of four full-time agents.
• He’s used to getting calls at all hours of the night due to his time with the Police Department.
• Feel free to reach out anytime with a question.
• This is typically a slower time of year but interest rates are incredible.
• If you’re even thinking remotely about selling, do it now.
• If your repairs addendum is holding you back from selling, this is something you can overcome.
• People who are looking for homes at this time of year tend to be serious.

3 Key Points:

1. You need to ask your agent how to get top dollar without putting too much money in up front.
2. The most fun day in flipping a house is carpet installation day because you know you’re almost ready to put the house on the market.
3. If you’re thinking about selling but are worried about renovations and repairs, you can overcome this situation and sell your home in this market.  

Resources Mentioned:

• Ryan Kiefer: LinkedIn, Facebook, Website
• Bryan Frodge website, Facebook, Twitter 

In Episode 17 of the Intelligent Equity Podcast, host Ryan Kiefer talks with Rob Deters of MGIC Mortgage Insurance. Rob demystifies mortgage insurance by explaining how it can help first-time home buyers get into a house sooner. Learn about the different types of mortgage insurance that are available, how to remove the insurance and the difference between conventional and FHA loans.

Episode Highlights: 

• Rob was in the wholesale lending business for 15-20 years. He joined MGIC six years ago.
• Mortgage insurance can actually be a great thing when you’re buying a house.
• You do not have to put 20% down.
• If you put down 10-15% instead, then you’ll have the extra to cover costs like replacing the carpet or buying new appliances.
• Mortgage insurance is much cheaper than it was in the past.
• There are different ways to pay for mortgage insurance.
• Monthly is the most common way to pay for it.
• When you pay monthly, nothing is due at signing which lowers closing costs.
• There’s also the borrower paid single premium option.
• If you’re going to be in your house for more than four years, the single premium option is worth considering.
• There’s also lender-paid mortgage insurance which carries a higher interest rate and is more expensive than the other plans.
• Rob describes how someone can cancel mortgage insurance and when it automatically falls off.
• Not all lenders require you to have your insurance for two years.
• FHA loans require a monthly payment and a one-time premium that’s rolled up into your mortgage.
• With FHA, you cannot cancel the insurance.
• You can put as little as 3% down. There’s also down payment assistance out there.
• Mortgage insurance can help you get into a house sooner.
• The money you put down is actually getting eaten up by inflation over time.
• MGIC’s Ready Nest website provides free educational resources for first-time buyers.

3 Key Points:

1. Most buyers try to avoid PMI, but you don’t really need to put 20% down.
2. There are three different ways to pay for mortgage insurance.
3. The biggest difference between conventional and FHA loans is that you cannot cancel the insurance with an FHA loan. 

Resources Mentioned:

• Ryan Kiefer: LinkedIn, Facebook, Website
• Rob Deters LinkedIn
• MGIC: Mortgage Insurance
• readynest.com