The Voice of Real

Estate Investors
Working Together
GDREIA
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION
Ph: (937) 586-3726 • Fax: (937) 586-3699
PMB 345, 3195 Dayton-Xenia Rd., Ste 900
Beavercreek, OH 45434-6390
email: [email protected]
Visit our web site at www.gdreia.com SEPTEMBER 2008 Vol. 32 No. 9

CALENDAR PRESIDENT’S MESSAGE

OF EVENTS Just when it seems that things are finally beginning to settle out, the head-
lines scream more negativity — this time it’s from an article with Forbes touting
that Dayton is one of the top-ten “dying” cities. What was interesting for me to
WEDNESDAY, SEPTEMBER 3 see was the criteria that the article cited: (1) loss of manufacturing jobs and
6:30 P.M. - Investors Forum (2) population exodus from the city.
7:15 P.M. - General Meeting That’s it. What it doesn’t say is that the loss of manufacturing jobs is due to
the economy — price of oil, which is causing gas prices at the pump to go up,
which is causing consumers to seek less expensive gas guzzling vehicles,
which reduces the need for trucks and SUV’s, which means less production of
THURSDAY, SEPTEMBER 11 these vehicles, which reduces the need for employees. Also, in order for the
GDREIA W.I.N.G.S. Meeting manufacturers in our area to remain competitive, they have instituted the
7 - 9 P.M. installation of new technology which increases their effectiveness and effi-
ciency and reduces the need for employees.
Exodus of population from the city? That’s been going on for years as the
people have moved or are moving to the suburbs. That’s true with every munic-
WEDNESDAY, SEPTEMBER 17
ipality in the country.
Action Group
Let’s face it, people. Ohio has a population of over 11,000,000 as of the 2000
6:30 P.M. - New Member census. These people work and live in this state. Ohio is a state based on agri-
Orientation/Networking culture and manufacturing. Dayton is a city that was heavily involved in the
7:10 P.M. - Session 1 industrialization of Ohio and has continued to be involved to this day.
8:20 P.M. - Session 2 Dayton is also a city that has recognized a need to reinvent itself. That is
most appropriate since Dayton has been the birthplace for numerous inven-
tions. Dayton needs help, of that there is no doubt. However, we — the people
SATURDAY, SEPTEMBER 20 —- need to get involved, get our voices heard and our presence felt in order to
9 A.M. - Saturday Investors make these changes. So here I go back on my soapbox again.
Networking Group Real Estate Investors are in a unique position here in Dayton. We bring jobs
Frisch’s Restaurant to the city — electricians, plumbers, roofers, carpenters just to name a few. We
4830 S. Dixie Dr. are excellent sources of business for suppliers — tools, materials, vehicles,
(at Springboro Pike) Dayton insurance, realtors, appraisers, etc. — just to name a few. We work hard at
bringing vacant, distressed properties up to current building code and bring
them back on to the tax roles providing income to the communities. We work
THURSDAY, SEPTEMBER 25 with the population to provide comfortable, affordable housing.
—Cont’d. on pg. 4
7 P.M. - Cashflow Club
Wright State University
Student Union Food Court Inside…
General Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Upcoming Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Visitors, New Members, Membership Drive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
MEETING LOCATION: GDREIA Upcoming Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
(Unless Otherwise Noted) A True Rehabber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Sinclair Community College, Proposed Amendments to the Code of Regulations . . . . . . . . . . . . . . . . . . . . . . . 6
Bldg. 12, 444 W. Third St., Introduction to Self Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-8
Dayton, OH How To Use Your Retirement Funds For Real Estate . . . . . . . . . . . . . . . . . . . . . . 9
Meeting Photos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-11
DIRECTIONS TO PONITZ
SINCLAIR CENTER
Board Election Bios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-13
Take the Third Street Do I Have to Lease to This Jerk? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-14
Exit 53A off I-75 The Key to Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
I-75 Northbound OR Real Estate Investors’ News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-17
Southbound: Legislative update. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Turn RIGHT on Perry St.
Turn RIGHT on Fourth St. Minutes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Turn RIGHT into the underground lot
You can purchase a parking pass at the
GDREIA meeting for $2 rather than See page 3 for more information about the
pay the posted parking charge of $10. CALENDAR OF EVENTS.
 2 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION
Monthly meetings...
All guests are welcome at the
monthly meetings held on the first
and third Wednesday of every GDREIA Newsletter Advertising Rates
month (unless otherwise noted) but
must register at the welcoming table Send your CAMERA-READY ad copy and payment
when they arrive. The first meeting
payable to GDREIA to:
is free to first-time attendees only.
Any subsequent meeting attended PMB 345, 3195 Dayton-Xenia Rd., Ste 900 Beavercreek, OH 45434
by a guest carries an attendance fee
of $15. Any former member attend-
Commercial Member rates
ing a meeting must also pay a $15
fee. Meetings are held at Sinclair
Bus. Card Size $ 15 per issue / $149 annually
College, Bldg. 12 (Ponitz Center), 1/4 Page (3.5" w x 4.5" h) $ 35 per issue / $360 annually
444 W. Third St., Dayton.
1/2 Page (7.5" w x 4.5" h) $ 74 per issue / $650 annually
Wear your membership card! Full Page Insert $149 per issue
Your first card holder is provided Non-Commercial member rates are double the Commercial member rates. Deadline for
free. Other card holders may be pur-
chased separately. Stop in early and
ads is the 5th of the month for the following month’s issue.
visit the library or chat with fellow
investors. Note: There will be a $2 fee
for not wearing your badge! Proceeds
go to charity.

We would love to have articles submitted for

Help GDREIA grow!! inclusion in this newsletter. Please email them to
Remember, for each new member
you bring in, you will receive $20 in Newsletter Editor at: [email protected].
REIA BUCKS. You can spend them or call Tom Di Nino at 937-689-3603.
for any goods or services we pro-
vide, including membership renewal.

A Reminder...
As a courtesy to your fellow mem-
bers, as well as to our speakers,
please turn off all pagers and cell
GDREIA WEB SITE NEWS!!!
phones in our meetings!!
GDREIA members have a place on the website where properties for sale,
for rent or looking to buy can be posted — FREE for members!
Bulletin Board/
This area will be accessible to the public and will be a great place for you
Solicitation Policy
to advertise for FREE. Pictures can be included for the property — just do
• Bulletin board is for General
(non-Commercial) members to
an attachment to your email!
post properties that they have The advertisement will be active for 60 days and then drop off. You can re-
for sale, and for Commercial advertise it as often as you wish.
members to post properties for
which they have real estate list- Our website: www.gdreia.com.
ings to sell. Now…here’s the secret code — don’t tell anyone! The password is
• Only Commercial members may
gdreia07 (note: must be ALL lower case) plus your I.D. number (which is
distribute or display materials
advertising their business, and on your membership badge). Another great benefit for our members!!
only the business that they have
Any concerns or comments, send them to:
on file with GDREIA. General
(non-Commercial) members may
Marsha Grosmann, [email protected]
not distribute or display materials Web Master
marketing their business.
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 3
GDREIA UPCOMING PROGRAMS
*Meeting Location: Sinclair Community College,
Bldg. 12, 444 W. Third St., Dayton, OH
Parking is available under Bldg. 12 (4th & Perry St.) with $2.00 passes available at each meeting.
* Unless otherwise noted

Wednesday, September 3, 2008 Wednesday, September 17, 2008

6:30 P.M. - INVESTORS FORUM ACTION GROUP
(Admission is FREE for members and first-time visitors.)
Speaker - John Zimmerman
Meeting Location: Sinclair Community College,
“Fair Housing” Bldg. 12, W. 4th & Perry St., Dayton, OH
OPHP Credit: 1 hour Fair Housing
6:30 P.M. - Information Hotline & Buy-Sell Trade Time
7:15 P.M. - GENERAL MEETING 7:10 P.M. - Session 1– Keeping Investors Out of Trouble
Speaker - Nick Sidoti - Holly Johnson
“Renting to Special Needs People” OPHP Credit: 1 hour Elective
OPHP Credit: 1 hour Marketing 8:20 P.M. - Session 2 – New Rental Clauses You
Need to Know - Johnthan Deevers
OPHP Credit: 1 hour Law
NOTE: The library will be open during the meeting.

Thursday, September 11, 2008 Saturday, September 20, 2008

7 - 9 P.M. 9:00 A.M. - Saturday Investors Networking Group
GDREIA WOMEN’S INVESTOR
Frisch’s Restaurant,
NETWORKING GROUP (WINGS) MEETING
4830 S. Dixie Dr. (at Springboro Pike) Dayton
Sinclair Community College, Bldg. 12, rm. #231
(second floor opposite the auditorium) Informal breakfast meeting (buy your own). Everyone
welcome. Experienced investors needed who might be
For more info contact Janice Kemmer at willing to host meetings at other locations as increased
[email protected] or 937-581-0507 or Kelly Robey attendance necessitates.
at [email protected] or 937-626-7934.

Thursday, September 25, 2008

7 P.M. - CASHFLOW CLUB
Your newsletter editor, Wright State Univ. Student Union (no parking fee)
Tom Di Nino, welcomes your comments. If you are interested in honing your Cashflow 101 skills or
You may email them to becoming a facilitator, contact Laura Ceville at (937) 427-4521
Newsletter Editor at: [email protected]. or e-mail [email protected]. Meetings are held on the 4th
Thursday of every other month. —Laura Y. Ceville, Chair

GDREIA UPCOMING EVENTS

DATE EVENT SPEAKER TOPIC OPHP CREDIT
SEPT 3 Investors Forum John Zimmerman Fair Housing 1 hr. Fair Housing
3 General Meeting Nick Sidoti Renting to Special Needs People 2 hr. Marketing
11 WINGS
17 Action Group 1 Holly Johnson Keeping Investors Out of Trouble 1 hr. Elective
17 Action Group 2 Johnthan Deevers New Rental Clauses You Need to Know 1 hr. Law
20 SING
25 Cash Flow
OCT 1 Local experts Maintenance Workshop
9 WINGS
15 Action Group 1 GDREIA new web site use
15 Action Group 2 GDREIA panel Finding Owner Financing
18 SING
NOV 5 Investors Forum New Federal Guidelines
5 Main Program How to do Short Sales
13 WINGS
15 SING
19 Action Groups 1 & 2 Mike Butler Management Software 2 hr. Management
 4 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION

Thank you... t o these members who The following persons are in the running for a $500
renewed their membership drawing for sponsoring a new member for 2008.
GENERAL: Dennis Barrett; Steven Burggraf; Laura & 1 Robert Batin 1 Paul Heintz
Braden Childers; David & Joanne Cronin; James & Hsiao 1 Scott Belton 1 Arthur Jones
Yung Ford; Carolyn Hardesty & Howard Smith; John 1 Brad Boehmke 1 Janice Kemmer
Johnson; Joseph & Sherry Lucas; Kelby Moore; Ted & 1 Bill Brandewie 1 Jon Lauver
Sheila Myers; Denny & Deborah Park; Mark Payne; Ralph 1 William Burt 3 Sham Reddy
& Delores Strother; John & Tara Theis. 1 Michael DiFlora 1 Travis Rucker
1 Morris Dixon 5 Jerri Todd
1 Marsha Grosmann
COMMERCIAL: CJH Mechanical, Inc./Charles & Linda
Hamilton; Like New Homes/Murray Chapple.

Guests —
We were glad to see the following guests at recent
Welcome! meetings: Melinda Cooper; Bill & Matt Heidenreich; Bruce
New GDREIA GENERAL MEMBERS: Nickolas Algren; Hull; Sharon Ivy; Paul Lander; Mark Murdoch; Cynthia
Jan & Brett Baylor (sponsor: Sham Reddy); Joelle & Ricker; Carolyn Ripp; Rhonda Sutherland; Joan Brown; Mark
Jason Engle; Basudde & William Kajubi; Eric & Brenda Hackney; Lauren Hunter; Robert Jollay; Jennelle Love; Doug
Phelps; Tim Silvers; Doug & Yvette Snyder (sponsor: & Yvette Snyder; Anthony Williams.
Jon Lauver).
We hope you enjoyed the meeting and will come again as
New GDREIA COMMERCIAL MEMBERS: There were members.
no new Commercial members. — Theresa Welch, Member Relations Chairperson

President’s Message............................................................................................ Cont'd. from pg. 1

We are treated not, as an asset investing millions of pulled out of the state refusing to do loans here or tight-
dollars into these neighborhoods — and I am talking ened up the criteria to such a degree that self employee
about not just Dayton but Trotwood, Fairborn, Kettering, investors could no longer get financing. If we can’t get
Centerville, Huber Heights as well — but as a liability. the money, we can’t do the work. It’s that simple!
These communities are making it more and more diffi- And by the way, whatever happened to holding peo-
cult for us to work with them. The neighborhoods imply ple accountable for their actions? If someone signs on a
that we simply cause more problems because we either contract without reading it or understanding it — whose
don’t maintain the properties — not recognizing that the fault is that really? Which leads to our school system but
tenants/residents who occupy these properties do not that’s another issue.Bottom line here is — investors —
treat the properties with respect in regards to the get involved. Pay attention to what’s happening in our
amount of monies we’ve invested in fixing up these communities. Attend these meetings. Voice your opin-
properties; or we move in just anyone — such as drug ions. Talk to our representatives in Washington. Get to
dealers or prostitutes or whoever. know the candidates and vote! If you don’t like who is
It seems that the communities and municipalities do running — then get active and do it yourself. Don’t just
not see us as businesses who are in business to make a sit there complaining. That’s what got us into this fix
profit in order to stay in business. We recognize that there we’re in.Do something about it! Be accountable!
are a few investors out there who do us no service. You have an opportunity right now. GDREIA has 5
Unfortunately, those are the ones that get the press and positions opening on the Board of Trustees. Elections
the attention. are in September. Make it a point to attend this meeting
Our state officials through various legislative acts and vote! This organization needs your voice. Volunteer
have made it very difficult for us to do our business. I am and get on a committee. Make your membership count!
speaking primarily here of those pieces of legislation Talk to the Board members and let them know your
that hamstrung most of us for financing. Most of the opinion on matters. The Board represents you, so the
investors use their own monies or private money to Board needs to know what you are thinking.
invest in these properties. Legislation that was targeted Attend the meetings - network - volunteer - vote!
to prevent “Predatory Lenders” from taking advantage of Do well by doing good!
the populace actually ended up cutting the feet out from — Jerri Todd, President
under investors because a great many lenders simply
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 5
A TRUE REHABBER
by Connie Di Nino, OPHP, NPHP
Insurance Works, LLC
Most of us consider ourselves true rehabber’s, but
what criteria make a “true rehabber”? Just the other
day, I was visiting with two of GDREIA’s top rehab- • VACANT
bers and sharing with them my excitement on get- CONTACT:
ting my very own light weight drill. My husband’s Bill Montgomery, CIC • RENTALS
drill that I had been using was too heavy to really 937-424-5633 (Office) • APARTMENTS
negotiate. So I got to thinking what excites us 937-424-5667 (Fax)
rehabbers and came up with this list. • COMMERCIAL
TOP 10 ITEMS ONLY A TRUE REHABBER CAN • REHABS
GET EXCITED ABOUT:
10. Winning the big flashlight at the last GDREIA
meeting.
9. Offer accepted on first try.
8. Getting materials needed on sale AND in stock. $179
7. No water in basement.
6. Copper pipes still in place.
5. Clean title.
4. Receiving responses from listing on Craigslist.
3. No critters!
2. Getting a new tool (especially a light weight drill).
1. Checking the mail and finding money on time.
OK – I know I missed a few, but what more would
a true rehabber need? If you think of other items,
feel free to share them with me. By the way, I now
know I am a true rehabber.

SAVE THE DATE:

DECEMBER3,3,2008
DECEMBER 2009
WE PAY CASH!
We Buy:
While Santa may be taking a • Seller-held Mortgages,
break on the beach, GDREIA HO! Land Contracts & Trust Deeds
has begun planning our annual HO! (no seasoning required)
Christmas Party. Watch for
upcoming announcements and
HO! • Business Accounts Receivable
• Business Notes
ticket sales. Make sure you
have the date marked on your • Other Cash Flows including:
Structured Settlements,
calendar because you don’t Medical Accounts Receivable
want to miss the fun—just ask Inheritances
someone who was there last
year. If you would like to help Providing Financial Solutions
please contact Connie Di Nino CONTACT JOHN OR MARSHA GROSMANN
689-3602 or email at RONMAN INVESTMENT GROUP
[email protected] (937) 429-3916
 6 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION

Introduction to Self Storage

By Scott Meyers

Self Storage Association Defini- • Are well lighted especially odd shaped parcels in
tion: Self Storage facilities are real • Are paved vs. graveled less desirable locations
property designed and used for the • Have storage units divided by • Has short construction time,
purpose of renting or leasing indi- steel, movable panels thereby providing little traffic dis-
vidual storage spaces to tenants ruption
•aa May have some or all of their
who are to have access to such • Uses very little energy!
spaces climate controlled
space for the purpose of storing and
removing personal property. They • Contain high-tech security sys- History
offer rental on a month-to-month tems, including electronic access,
The conventional concept of per-
basis of individual spaces where cameras, and digital video recording
sonal storage began in England
customers provide their own lock • Have perimeters that are walled when British banks were asked to
and have sole access to their space. or fenced with security gates safeguard valuables for clients
Today’s typical storage facility may • May or may not have a resident embarking on extended voyages.
comprise several one or two-story manager Overcrowded vaults quickly forced
buildings on two to six acres of • Have single or multi-story them to seek storage lofts from
land, or a multiple-story building, buildings drayage companies (the first mov-
containing a carefully designed unit ing companies). The first mini-
• Provide carts and dollies for use
mix of spaces. The units typically warehouses for household and per-
by its customers
range in size from 5X5 to 10X30 sonal items were built. The two
• May contain movable storage
feet with 30,000 to 120,000 total story structures were built with
modules
rentable square feet of space. Self packing on the lower floor and pri-
storage facilities frequently feature • Sell storage and moving related
vate storage rooms on the second.
large roll-up doors and drive up supplies
Except for expansion into multi-
access to outside spaces and offer • Provide ancillary retail services story buildings, things remained the
outside parking for storage of boats and products. same for decades, until the 1950’s
and recreational vehicles, which From the real estate perspective, when costs rose. This led to con-
often can’t be stored in residential self storage: struction of palletized warehouses
communities. Today’s facilities nor- • Meets the needs of several con- which were designed to handle
mally have the following features: sumer groups (residential & com- crated customer goods that could
• Contain 10,000 to over 100,000 mercial) be stacked three levels high.
rentable sq. ft. Access to household/personal
• Uses simplified structures
• Offer a wide range of unit sizes goods was restricted and it was
• Makes efficient use of land,
expensive, since customers had to
— Cont’d. next page

PROPOSED AMENDMENTS TO THE CODE OF REGULATIONS

ARTICLE V. – AUTHORITY AND SELECTION Also under Article V, we wish to ADD Section 7:
OF THE BOARD OF TRUSTEES Section 7. TERM LIMITS
Section 2. ELIGIBILITY AND COMPOSITION Board members shall serve for a limit of three (3)
consecutive terms, including partial terms. At that
At least seven (7) Trustees serving on the Board of
time that member must remain off the board for at
Trustees must be current real estate investors. To
least one year before being elected again. The
be elected to and remain on the Board, a Trustee
term limitation shall begin with the first full or par-
must:
tial term beginning with the 2008 elections. This
A. Be a member in good standing with GDREIA
provision shall not apply to the immediate Past
at least one (1) year.
President if the president’s three terms have
B. Be at least 18 years of age.
expired but the president must serve on the execu-
C. Sign and abide by the GDREIA Board Confi-
tive committee to fulfill other provisions of the
dentiality Agreement.
Code of Regulations.
We wish to add:
D. Have spent at least one (1) year on a GDREIA
committee.
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 7
Introduction to Self Storage.............................................................................. Cont'd. from pg. 6
make appointments to obtain items • Businesses storing seasonal can often find facilities in their local
and pay each time for the service displays area and they receive additional
(stored property could only be • College students storing books, service value because self storage
reached by forklifts which were desks, etc. during summer managers are trained to counsel
operated by staff) and business • Military personnel in need of consumers on how to store items
hours were limited and normally did low cost space or are on temporary more efficiently in less space,
not include weekends. duty thereby reducing the cost.
Initial development of self stor- Self storage is a useful manage-
• Seasonal visitors with house-
age facilities in the US occurred pri- ment resource for small businesses,
hold items and sports equipment
marily in the Western United States since businesses can easily obtain
and the Sunbelt states. Contributing The advantage of using rental more space as they grow without
factors were: a transient population storage space is increased flexibil- committing to expensive long term
moving to new jobs and better cli- ity, low cost, convenience, and leases. Furthermore, it provides
mate, retirement condominiums, value. businesses with a means to cut
apartment and townhouse resi- Self storage space is generally costs, should they need to down-
dences, slab construction, etc. rented on a month-to-month basis size. Self storage is also useful for
Many facilities were developed and does not commit customers to college students and seasonal visi-
prior to 1979, with 1978 generally long term leases. Tenants may typi- tors who may rent space for a sea-
acknowledged as one of the great- cally leave whenever they want and son, and for military personnel who
est growth years in the industry. As rent only the space they need. A go on temporary tours of duty, but
the decade of the 1980’s began, recent study shows that the average intend to return to the area, and for
increased self storage construction length of tenancy for a typical cus- those who can’t afford to rent more
activity occurred along the Eastern tomer is 11 months, and 24 months living space.
coast of the United States, with for the average commercial tenant.
The cost of self storage space is Today’s Market
increased interest in Canada,
Europe, Australia and other coun- lower than office or retail space, Estimates of the overall number
tries of the free world. saving users money. On average, of self storage facilities operating in
self storage is roughly 60% less than the United States varies greatly but
Self Storage Tenants the cost of most office on a per most industry veterans estimate
It’s been said that self storage is square foot basis. Self storage users
— Cont’d. next page
used by people and businesses in
transition, but that’s only part of the
picture. Self storage is used by a
wide range of consumers with dif-
ferent needs that may include:
Commercial &
Investment
• Homeowners and businesses in
Comtech Property
Realty
need of temporary space for over-
flow of property or inventory Specialists
• Those in the process of relocating
• Property stored in relation to an Commercial Sales & Leasing
estate in transition due to death, liti- Commercial & Residential
gation, restoration, etc. Property Management
• Businesses in need of space for
general control of inventory,
Short Sales & Bank REOs
records, supplies and equipment Creative Financing
• Businesses that are expanding Consulting
or contracting
Whatever your need,
COMTECH REALTY IS THE SOLUTION!

MIKE BAUGHMAN, Broker

Spirit MARK MONROE, ABR
Each office independently owned & operated.
Dayton, OH 45440
email: [email protected]
www.shamreddy.com
Comtech Realty LLC
22 McDaniel Street, Dayton, Ohio 45405
Office: (937) 427-2626 Phone 937.227.2929 • Fax 937.227.2930
Pager: (937) 234-1340 [email protected]
 8 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION
Introduction to Self Storage.............................................................................. Cont'd. from pg. 7
that there are somewhere between medium to large players undergoing variety of self storage property styles
45,000 and 50,000 facilities as of the consolidation, although it is becom- and customer services to meet spe-
date this went to press. ing more difficult for the larger buy- cific storage needs.
As the population becomes more ers to accomplish since most owners Competition in the self storage
familiar with self storage, the realize what a great low mainte- market is increasing. Maximum suc-
demand for off-site storage has nance high-cash business it is, and cess for investors/operators depends
expanded to accommodate the therefore are reluctant to sell. As a on the ability to meet customer
growing needs of the business com- result, the top 50 companies control needs with convenience and value.
munity by storing files, medical approximately 25 percent of the To satisfy customers, today’s self
records, excess inventory, equip- square footage in the industry. storage must look to locate in retail
ment, etc. In some areas, business As demand for space has grown corridors, light commercial or even
storage accounts for 30% or more of and the self storage industry has high density residential neighbor-
the total tenancy of a facility. Easy evolved, consumers have become hoods, in addition to traditional
access, convenient office hours, more familiar with the property type industrial and heavy commercial
short term rental agreements, and (92% of the households in the U.S. areas. Newer facilities emphasize
no long-term commitment to pay were familiar with the concept, architectural aesthetics in construc-
for space which may not be needed according to a survey sponsored by tion and are designed to blend in
in the future, make the self storage the Self Storage Association in with the retail or residential nature
facility extremely attractive to the 1989). Inasmuch, local and regional of the areas they serve. Landscaping
retail customer, contractor, home competition ranges from a handful has also become a prime considera-
based businesses, manufacturer’s, of properties to scores in a given tion, as well as the interaction of
pharmaceutical representatives, etc. trade area. Accordingly, customers storage development with adjacent
The industry still remains rela- may choose where they will store planned tracts of offices, retail
tively unsophisticated and highly and from many different options, stores and business parks, in order
fragmented. Today, roughly 75-80% with unit size and the choice of cli- that incubator space is available to
of all self-storage facilities are mate or non-climate controlled support public planning. All of this is
owned by small independent “mom space being the base options. Today done with the aim of creating a
and pop” operators. In addition, consumers have the ability to com- clean, stable, secure upscale image
there is a considerable amount of pare and choose from among a that supports the perception, and
the reality of trust among current
and prospective customers.
...................................................

Scott Meyers, CSSM©, is the

nation’s leading Self Storage educa-
tor. He travels the country revealing
why Self Storage has become the
hottest sector in Commercial Real
Estate over the past 30 years that vir-
tually nobody has heard about.
Scott Meyers, CSSM is the owner
and President of Alcatraz Storage®
which operates several Self Storage
Facilities in the Midwest. Scott is a
Certified Self Storage Manager
(CSSM©) through the National Self
Storage Association and is a Certified
Apartment Manager (CAM) through
The National Apartment Association.
He has been a real estate investor
since 1993, and was an instructor of
the Landlord 101 course through the
University of Indianapolis. Scott
Speaks to Investor groups nationwide
but mostly enjoys spending time at
home with his wife and 3 young chil-
dren in Indianapolis, Indiana.
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 9
How to Use Your Retirement Funds for Real Estate
by Hugh Bromma

In this articles, we will examine present plan does not permit the How Often Can You Do This?
how one can use the tax-deferred flexibility we are about to discuss, As often as you like. Some people
money in their retirement plans to remember any plan may be like to buy distressed properties, fix
take advantage of real estate invest- amended and restated to make such them up, and then sell them. Others
ing opportunities. This article capabilities available. buy discounted notes. Some pur-
explains how you can use your chase income streams. There are as
401(k) funds to diversify your portfo-
How to Use the 401(k) for
Real Estate and Notes many options as one can think of,
lio mix into real property. provided you follow the rules.
After all this, how can the funds
The 401(k) Plan Typically, employers will use the
in your 401(k) plan be used for real
completely self-directed option for
First, it is important to understand estate transactions? Once you have
compliance with 404(c) of the code
some basic features of a 401(k) pro- found out that your 401(k) plan
for self trusteeship safe harbor.
gram. The 401(k) is a subsection of funds can be used for real self direc-
Some combine the complete self
the Profit Sharing Plan section of the tion, and the trustee of the plan also
direction along with a number of
Internal Revenue Code. It allows for permits such transactions, the rules
mutual fund choices, making com-
employee deferrals on a pre-tax are simple:
plete self direction available on a
basis. Employers may make this type You can purchase assets into
non-discriminatory basis to all
of plan available to their employees your plan which are not prohibited.
employees. There is a cost associ-
by adopting an acceptable format Real estate is not prohibited. You
ated with this.
for such a plan. There are limits of may not deal with yourself or mem-
As can be imagined, the process
how much an employee can con- bers of your family (other than sib-
of purchasing notes and real prop-
tribute. Adoption of such a plan also lings).
erty is a labor intensive process; the
permits the employer to match
All Transactions Must Be process of purchasing mutual funds
employee contributions and to make
Arm’s Length in a daily valuation environment is
profit sharing contributions (at the
This means that you can pur- almost fully automated. Your 401(k)
employer’s discretion).
chase mortgages with your plan administrator can provide you with
An individual employee may con-
assets. This means you may pur- the costs. If your administrator does-
tribute up to about 20% of annual
chase real property in your plan for n’t handle complete self direction,
compensation, to a maximum of
income purposes. While debt- there are some that will. It’s up to
$9,500 per year. Employers may
financed properties may be subject you, as an employer or employee to
make matching contributions (such
to unrelated business income taxes, ask. You may be surprised at the
as 25 cents on the dollar) up to 8%
in almost all investment cases we answer.
of total compensation for each
are aware of this has not applied. ....................................................
employee. Sometimes profit sharing
contributions may also be made How It Works Hubert (Hugh) Bromma is CEO of
and, under certain circumstances,
How does it work? First, you find Entrust Administration, Inc. He has
one may have a combined package
the property or note. These are self- decades of experience on the cutting
of 401(k), match and profit shar-
directed plans, and no one is going edge of investment education. His
ing/money purchase up to $30,000
to give you a list of real property to business philosophy is providing qual-
in a given year. All of this is vari-
c h o se from . I t’ s a l l up to you. ity education to enable his clients to
able, and one rule does not apply for
Remember, you take all of the risks enhance their investments. Hugh has
all cases.
and receive all the benefits. Neither written several books on tax-free and
If you are an employer, you can
the employer or the plan trustee tax-deferred investing and has an
design the features of the plan and
has any obligation to you in a prop- extensive background in economics
provide the investment alternatives
erly designed plan. Second, you and investing.
for yourself and your employees. If
request that the administrator of
you are an employee (not defined as
the plan ask the trustee of the plan
an employer), you are permitted to
to purchase the asset you have
operate your deferrals and invest-
selected for your benefit in your
ments as established by your
plan. All this is performed through
employer. If some of the features we
written documents. Third, the secu-
discuss here are not available to you
rity interest in the asset you have
as an employee, you may wish to
asked to be purchased is perfected
discuss them with your employer to
for the benefit of your plan account.
determine whether they can be
Income and expenses are allocated
adopted by your 401(k) plan. If your
to your account.
10 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION

July 16, 2008

3rd Wednesday/Action Group Meeting

SPEAKERS

1st Speaker
Dave Bohardt

2nd Speakers
Mark Monroe & Mike Baughman

Winners

Door Prize Winner

Door Prize Winner
Basudde Kajubi
Judy Kaster
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 11
August 8, 2008
GDREIA General Meeting
SPEAKERS

1st Speaker 2nd Speakers

Dave Murray Matthew Tillack & Edwin Kelly

Winners
Door Prize Winner
Denny Park Split-the-Pot Winner
Gary Crowell

Door Prize Winner

Johnathan Newman
 12 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION

Elections for the GDREIA Board of Trustees

Elections will be held in September for GDREIA board positions. Six candidates are seeking those posi-
tions. Information on each candidate is presented below.

DARRIN CAREY TOM DI NINO

Darrin has been a member of GDREIA for almost 4 Tom asks for your vote and support for a GDREIA
years, attending his first meeting within a few days of board position. Tom knows GDREIA is a very important
moving here. He’s attended almost every meeting and and beneficial organization and he wants to help
event since, and sat on a multiple member panels, GDREIA grow and increase support to its members.
assisted with the library and cash flow games. Most Tom is currently the GDREIA news letter editor. He has
recently, he presented a 2-hour session to WINGS on volunteered in other areas of GDREIA including chairing
creative financing. the transition committee, helping with the holiday party,
He read his first book on real estate in 1983, but didn’t work crew volunteer at Rebuilding Together Dayton, and
buy an investment property until 2001 (yes, almost 20 participating in the OREIA newsletter round table during
years; same long list of excuses). Since that first pur- the 2008 OREIA Leadership Retreat.
chase, he’s been fully immersed in real estate invest- Tom has been a real estate investor since 1979. His
ing— land contracts, lease options, subject to, short experience is with single family rentals. He has past
sales, seller seconds, wholesaling, etc. If there’s a tech- holdings in Arkansas and Virginia, and currently has
nique out there, he’s probably done it or tried to do it at several houses in the Dayton area. He retired from the
least once. Darrin has progressed from his first naïve US Air Force having served for 26 years. He now owns
purchase (still owned) to a near bankruptcy caused by a and operates a successful marketing and consulting
crooked property manager (not a REIA member) to cur- company serving the defense community. He and his
rent successes. He’s learned many of the lessons the wife Connie are focused on expanding their real estate
hard way. (He should have joined REIA way back then.) holdings.
After dozens of rentals and rehabs, he’s built up a lot of As well as his volunteer work with GDREIA, Tom cur-
experience, but there’s still more to learn. rently serves as the Communications VP for the Dayton
After 20 years of service, he’s retired from the Air Chapter of the Air Force Association and is a past presi-
Force to work Real Estate full-time. While in the Air dent, and current chair of two committees of the Dayton
Force, he worked diverse projects at worker and man- Area Defense Contractors Association. Tom holds a
agement levels, and served on various boards. He also National and an Ohio Professional Housing Provider
co-wrote and taught several different classes related to certification.
personal finance and investing that formed the basis for
an Air Force-wide education program.
Darrin is now giving back to the community by help-
ing others attain their investment and business goals
(and helping them avoid his mistakes). He wants to help JOHN GROSMANN
grow the great organization we have in GDREIA into an John asks for your support and your vote. He has been
even better one. an investment property owner since 1972, owning
rentals in many states. A GDREIA member since 1984,
he has been involved with the Board for many years,
serving on several committees and special projects. He
ART JONES has served as Secretary, Chairman of the Public Rela-
Art Jones is a full-time real estate investor who has
tions Committee, Newsletter Editor, Program Chair,
been a GDREIA member since January 2001, has served
President, Vice-President, and is the current Treasurer.
as OPHP chair, Commercial chair, Workshop and Men-
His goals are to help enhance GDREIA’s image in the
torship chair and is presently the Volunteer chairperson.
eyes of area rental property owners, the Public, govern-
A Board member for the organization since March 2002,
ment entities (elected officials and public employees),
Art received his Ohio Professional Housing Providers
and also encourage more member involvement in the
designation for completing the mandatory 60 hrs of
organization. He believes that his experience and
training in November of 2003, is a National Professional
knowledge as a full-time real estate investor and his
Housing Provider and has been an active mentor for the
leadership and Board experience in other organizations
GDREIA since 2002. Art has been a speaker for various
has and will continue to benefit GDREIA.
other organizations in Ohio and surrounding states con-
cerning real estate investing, is always willing to help
other investors be the best they can be and show new
investors how to get started correctly to make money in — Cont’d. next page
this business.
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 13
Elections Bios...................................................................................................... Cont'd. from pg. 12

DAVID MURRAY JERI TODD

Dave is an accountant since 1989, in public practice Born in Birmingham, Alabama just a “few” short years
since 1994, an investor since 1997, and currently owns ago, Jerri worked for over 20 years in the corporate world
about 35 rental units and flips a couple houses a year. of employee benefits and insurance. Jerri arrived in Day-
Dave is currently chair of the internal audit committee. ton by way of Denver, Colorado 10 years ago and began
He was the former chair of the WHIO Real Estate Radio investing in real estate as a way of supplementing the
Committee and recently chaired the committee to update home income in preparation of her husband’s retirement.
the association’s Bylaws and Code of Regulations. Dave Jerri’s “crisis” point came in August, 2001 when her
has spoken at numerous GDREIA workshops. husband’s company incurred a major change that
Dave has enjoyed professional success as a result of resulted in his job loss and 9/11. His job change came
working with members and wants the opportunity to con- with an 80% reduction in income. Shortly after, he
tinue to give back through his efforts at the Board level. became seriously ill and required surgery. While she
stood by his bed in the Surgical ICU unit, she questioned
the future in the event her husband did not recover as
hoped. That was the kick she needed to get into invest-
ing full time and at full speed.

Do I Have to Lease to This Jerk?

By Charles Brown

As an attorney, I represent prop- cation. He is qualified to be a tenant you would have rejected someone in
erty management companies and here. the non-protected class for the same
provide legal advice to apartment Me: Do you have a written policy reason. However, you might want to
managers. Periodically, I have a that outlines your admission criteria? document in your file the reason you
conversation with a client that goes Manager: Yes, and he meets all of rejected someone because you may
something like this: the criteria, but I can’t imagine deal- have to defend the decision in the
Manager: This guy came in this ing with this guy for the next year. Do future.
week and applied for an apartment. I have to lease to him? Manager: You mean we can have
He is really obnoxious and I get “bad Me: No. a “No Jerks” policy?
vibes” from him. Do I have to lease to Manager: I don’t? Isn’t that dis- Me: Yes. Just as you may have a
him? crimination? Don’t I have to treat policy that rejects applicants who
Me: Why does he give you “bad everyone the same? have a criminal record, who do not
vibes”? Me: Not necessarily. As long as have sufficient income, who have
Manager: He has called every two your reason for not leasing to this bad hygiene or who have bad credit
hours to see if his application has person has nothing to do with this history. The legal test is whether
been approved. Then, he puts me on person’s race, color, religion, your decision is because of the
hold every time he gets another call national origin, sex, familial status applicant’s race, color, religion,
on his call waiting. He yelled at me or handicap, (the “protected classes” national origin, sex, familial status
when I told him that we would not be under the Fair Housing Acts), you or handicap. If your decision is for
able to process his application without don’t have to lease to them. some other reason, you are not vio-
a copy of his driver’s license. He has Manager: If he is in the “protected lating the law.
asked to see the same two apartments class” don’t I have to lease to him Manager: What do I tell him about
every day for the last week. He told anyway? why I’m denying his application?
my assistant manager that our staff Me: No. You do not have to rent to Don’t I have to give him a reason why
was incompetent because we could him just because he is in the “pro- we will not lease to him?
not tell him how many cubic inches tected class”. Your decision to deny Me: No. As long as the reason is
the refrigerator freezers have. He the application is not based on this not based on his credit report you do
wants to see the resumes of the main- applicant’s race, color, religion, not have to give a reason. I do rec-
tenance staff. He made one of my national origin, sex, familial status or ommend that you confirm all disap-
leasing agents cry. This guy is obnox- handicap. You may deny the applica- proved applications with a polite let-
ious and rude. tion for another reason. For example, ter confirming their disapproval but
Me: Did he complete his applica- the applicant could be in the “pro- it is not required. In this situation,
tion? tected class”, but if he refuses to fill you do not have to state the reason
Manager: Yes. Good credit, no out the application completely, you for the disapproval in the letter if
criminal history, sufficient income. I could refuse to lease to him based on
verified the information on the appli- that reason. It’s all right as long as — Cont’d. next page
 14 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION
Do I Have to Lease to This Jerk?..................................................................... Cont'd. from pg. 13
you send one Managers are often due to a mental disability. The appli- rights and the tenant that is just
surprised to hear that they do not cant may be in the “protected class” rude and obnoxious without merit. If
have to lease to people who other- and you may be inadvertently deny- a tenant has been obnoxious and
wise qualify to be tenants. The mis- ing their application based on a pushy but in the context of asserting
conception is that they have to treat mental disability, which is reason for their legal rights such as requesting
everyone the same. While it is a their unacceptable behavior. repairs, you should probably renew
good idea to be consistent in your The same question arises in lease their lease. Otherwise, a jury could
treatment of all tenants and renewals. Sometimes you lease to easily infer a motive of retaliation.
prospective tenants, you do not people who make life difficult for You would have a difficult time
have to treat everyone the same. themselves and everyone around proving that the reason for not
However, if you deny an applicant them and you wish you had never renewing the lease was based solely
just because you don’t like them, leased to them. While their behavior on the tenant’s conduct and was
you run a greater risk of a discrimi- may not warrant an eviction, you unrelated to their exercising their
nation claim if they are in the pro- may decide to refuse to renew their legal rights.
tected class. For example, say you lease. As long as decision to deny the Life is too short to have to put up
deny the application of a Hispanic lease renewal is not because of this with certain people as tenants. As
female who is in a wheelchair and tenant’s race, color, religion, national long as your reason for not leasing
has three minor children because origin, sex, familial status or handi- to a person has nothing to do with
she is obnoxious and rude to you cap, you do not have to re-new their their race, color, religion, national
and your staff. A jury could more lease. Like lease applications, you do origin, sex, familial status or handi-
easily infer that your denial was not have to tell the tenant why you cap, you don’t have to.
based on some other reason (i.e. her did not renew their lease. ...................................................
disability, her race, her familial sta- Another factor comes into play in Charles Brown is an attorney who
tus) than the fact that you did not lease renewals. You may not refuse invests in real estate in the Austin,
like her behavior. to renew a lease in retaliation for a Texas area. He is Board Certified in
Be consistent in enforcing the poli- tenant exercising his rights. Here, Residential and Commercial Real
cies, otherwise, it may be hard to you must make the distinction Estate Law by the Texas Board of
prove that you did not discriminate between a tenant who is rude and Legal Specialization. He can be
against someone in the “protected obnoxious in making legitimate reached at 512-476-8942.
class” illegally. The problem with a demands and asserting their legal
“No Jerk’s” policy is that it may be
viewed by a jury as a pretext for dis-
crimination. In other words, a jury
might think that your rejection of
someone based on their offensive
behavior is just an excuse that you are
using to discriminate against them for
some unlawful reason such as their
race, color, religion, national origin,

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GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 15
The Key to Success
By Dwan Bent-Twyford

e meet many investors who are If you are getting two out of ten
W looking for a magic pill. They
think there is a magic sentence; a
homeowners to contract, look how
many more people you have to sit
special program; the perfect boot down with just to get the same
camp; the easy way to find deals. seven deals we get. We can speak to
Folks, I have to tell you, there is no one hundred homeowners and get
magic pill. You can be successful if seventy contracts. Likewise, you
you’ll do one thing: WORK! There speak to one hundred homeowners
are an unlimited number of foreclo- and only get twenty to contract.
sures every single month. The num- Which would you rather do? We
ber of homeowners who needs help agree, seventy. Look how much
is mind-boggling. In most larger more money you can earn from the
cities, as many as five hundred fore- exact same work?
closures are filed every week. This Here are a few of our favorites: Folks, take time to learn how to
doesn’t include the homeowners work with me, sign this agreement communicate. Read a few books on
who save their property before it hits now, decide now, trust me, buy NLP, attend sales seminars, invest in
public record. now, accept this offer, make a com- books that teach how to close deals,
Do you know what the real key to mitment, convince yourself, post- and take the time to really listen to
success is? It’s good communication pone the sale date, motivate your- your homeowners to see how you
skills. Seriously! If you can’t talk to self, take the short sale, get it can be helpful. With the right words
homeowners and bankers, how do approved, and begin to realize. and the right attitude, you’ll make
you expect to close deals? We have You might be thinking, “How do I millions! We do!
been studying NLP: Neuro Linquistic begin to use these commands in my .................................................
Programming. NL…What? NLP is the communication?” It’s easy, folks.
way you communicate with others. Plan a presentation, write several Dwan Bent-Twyford, the Queen of
It’s simple folks, the better you com- basic sentences, and more impor- Foreclosures, learned the “foreclo-
municate, the easier the deals come. tantly, practice. Here are a few sure” business the old-fashioned way,
NLP is cause and effect language. examples: “When you decide now to by knocking on doors. She needed a
It uses patterns of speech and words accept this short sale, you’ll begin to career that would allow her the free-
in the correct group to persuade oth- realize that working with me is easy. dom of working from home and rais-
ers to see things your way. Here is I close my deals in record time, ing her daughter at the same time.
an example: You could ask a home- which makes you look great to your Investing in foreclosures was the per-
owner, “Will you sell your property boss.” Here is another: “Mrs. Home- fect solution. She made $22,000 her
to me?” Or you could say the same owner, you have to convince your- first deal and never looked back.
thing using NLP. It sounds like this: self that working with me is the right She now successfully handles every
“Mrs. Homeowner, when you decide thing to do. Let’s sign the agreement aspect of wholesaling, short sales,
now to work with me and we get so you can start sleeping well again. buying, rehabbing, marketing, and
your property sold, you’ll know you Won’t that be great?” financing foreclosures and distressed
made the right decision. Let’s do the NLP takes practice to be good at properties. In a business dominated
right thing and sign this agreement it. We truly believe it is the differ- by men, this amazing woman quickly
now so we can get you what you ence between earning $100,000 a learned how to apply her unique
want in the time you want it. Won’t year and $500,000 a year. Which experience to create win-win situa-
that be great!” Doesn’t the second would you rather earn? We’re sure tions when buying property. With so
sentence sound better? It’s embell- most of you answered $500,000. Fel- many folks asking Dwan, “How can I
ished language and works remark- low investors, have you taken the learn this business?”, she developed a
ably well. time to determine your numbers? If complete training series as well as a
In our second sentence, we used you sit face-to-face with a home- five-day “boot camp”. Dwan Bent-
“embedded commands.” These are owner, how many deals do you get Twyford now enjoys traveling and
commands within the sentence that under contract? We get seven out of sharing her vast knowledge with new
call homeowners to action. Can you ten and we are certain it is because as well as seasoned investors. Don’t
guess the embedded commands? of our communication skills. With miss this exciting lady!
They are: decide now, work with proper communication skills, you
me, get your property sold, do the can close seven out of ten as we do.
right thing, and sign this agreement Without proper communication
now. By adding just a few com- skills you might close two out of ten.
mands to your presentation, you’ll
be able to close more deals.
 16 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION

Real Estate Investors’ News Digest

This column is a timely report of real estate investment trends and opportunities selected from national,
state and local news media, as compiled by Gene Fox, GDREIA member.
Bank stocks drop anew losses on sales of foreclosed homes erties result from a variety of fac-
amid worry over falling are painful for banks and investors tors, including declines in the home
home prices in the short run but should help value below the loan balance;
Stuck with a growing glut of fore- clear the backlog. That would allow missed payments by the owner
closed houses, banks and investors for an eventual recovery of the before the foreclosure; real-estate
are shedding them at increasingly housing market and clean up the commissions; and the costs of
steep losses, potentially adding to banks’ balance sheets. “I do not repairs, taxes, insurance and main-
the banking industry’s red ink this think this is the time to be holding tenance while the bank or loan
year. Banks are selling foreclosed onto [foreclosed homes] and hoping investor owns the property. The
homes in some cases for less than for a better day,” Daniel Mudd, chief pain may get worse before it starts
half the price they fetched two or executive of Fannie Mae, said during to ease. A recent report from Bar-
three years ago. The cuts are com- a conference call Friday. Banks and clays Capital estimates there are
ing as the U.S. banking sector, slog- investors have grown more leery of 721,000 bank-owned homes nation-
ging through its worst crisis in the rising costs of holding onto wide, up from 112,000 two years
decades, bites the bullet out of fear vacant homes. Along with such ago. Barclays expects the total to
that prices will keep falling. J.P. Mor- expenses as insurance, lawn care rise 60% more before peaking in late
gan Chase & Co. warned Aug. 11 and maintenance, banks are being 2009. Financial institutions are
that it expects “a continued decline hit with higher costs for complying acquiring homes through foreclo-
in U.S. housing prices.” J.P. Morgan’s with local regulations applying to sure much faster than they can sell
warning was notable because the vacant homes. The price cutting them. Fannie Mae, a government-
bank has been ahead of the curve may mean even deeper losses for sponsored mortgage investor, dis-
over the past year in sounding the banks, but in some areas price tags closed in early August that it
alarm about emerging troubles, such have fallen enough to entice bargain acquired 44,071 homes through
as mounting defaults in home-equity hunters back into the market. foreclosure during this year’s first
loans and credit cards. The steep Losses to banks on foreclosed prop-
—Cont’d. on next page

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GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 17
Real Estate Investors’ News............................................................................. Cont'd. from pg. 16
half but sold only 23,627, leaving a pools of mortgages. “These ordi- ties to as much as $3,500 a year
balance of 54,173 as of June 30. Fan- nances are popping up every single after five years from a flat $300. This
nie said it is opening field offices in day,” said Robert Klein, chief execu- year, the city began obtaining civil
California and Florida to try to speed tive of Safeguard Properties in judgments against property owners
sales of such homes and is evaluat- Brooklyn Heights, Ohio, which who don’t pay their fees. It also is
ing offers from unidentified parties maintains vacant homes for mort- putting together a program that will
interested in “bulk” purchases. gage companies nationwide. Klein let the city repair, demolish or barri-
-The Wall Street Journal, Aug. 13, 2008 said his office is tracking more than cade abandoned homes and then, to
60 local ordinances that deal with recover the cost, put a tax lien on
Vacant-property fees add to foreclosed properties. Local govern- the property. City officials say they
mortgage firms’ woes ments taking a tougher stand span have collected about $192,000 in
As home foreclosures continue to the country, from Providence, R.I.; to fees so far this year compared with
rise, a growing number of local gov- Cincinnati; to Chula Vista, Calif. City roughly $265,000 in all of 2007.
ernments are imposing stiff fees on officials complain that local taxpay- Many of the vacant properties “are
mortgage companies responsible for ers can’t continue to pick up the owned by lenders, and we are hav-
the vacant properties. Local officials cost of cutting lawns, draining ing a difficult time of getting them to
say the levies are intended to offset swimming pools, boarding up win- step up to the plate,” said Edward
the cost of maintaining and policing dows and policing vacant proper- Cunningham, Cincinnati’s division
abandoned homes and to keep these ties. Some municipalities are manager for property maintenance
properties from becoming blights on responding to the challenge by dou- and code enforcement, adding that
neighborhoods. The tougher rules bling or tripling existing fees and the money collected by the city goes
also are adding to the financial bur- stepping up enforcement of existing into a fund used to deal with vacant
den on mortgage companies grap- ordinances, while others are adding buildings.
fees and penalties. Other municipal- -Wall Street Journal, July 29, 2008
pling with a surge in foreclosures,
which some economists estimate ities are beefing up existing statutes.
may reach three million by the end While Cincinnati has had a vacant-
of this year. And the new rules may property ordinance for more than a
raise costs and lower returns for decade, in 2006 it increased the
investors who hold bonds backed by application fees for vacant proper-
 18 GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION

L E G I S L AT I V E U P DAT E
OREIA LEGISLATIVE ing yourself what do I care what 53 of the seats while the democrats
COMMITTEE happens in R.I.? Well, within a week hold 46. The Democrats have 41
of the R.I. court’s decision, the cities incumbents running and they have
LEGISLATIVE UPDATE of Columbus and Toledo dropped no candidates in 15 districts. The
by Michelle Wells their suits against the manufactur- Republicans only have 32 incum-
ers group. Other cities and states in bents, with 3 districts with no candi-
The Legislature is in Summer the weeks following have dropped dates.
Recess their suits. There are 26 districts where there
The Ohio Legislature is on sum- The Ohio Supreme Court has are no incumbents running. With a
mer recess, but there are many hot ruled that a landlord or property little help, we could get “friendly”
issues that the legislative committee owner is not liable for discrimina- lawmakers elected to those seats.
is tracking on your behalf. The law- tion when they do not evict a tenant The districts by number are 2, 3, 19,
makers may be out campaigning, who has made racial comments 22, 27, 31, 34, 35, 36, 37, 38, 40, 50,
but the Supreme Court is still in ses- about another tenant. The Ohio 53, 58, 70, 79, 80,82, 83, 84, 90, 92,
sion. There have been several rul- Civil Rights Commission has prose- 94, & 97. http://www.ohiodaily-
ings that effect our industry. cuted landlords for discrimination blog.com/content/list-2008-ohio-
The R h o d e Is l a n d Su p r e m e involving tenants using racial slurs. candidates
Court has thrown out a lead based Ohio Senate: There are 33 state
paint suit against Sherwin-Williams Summertime is senators, each representing about
and two other paint manufacturers. Campaign Time 330,000 people. At present there are
That court ruled that they could not 21 Republicans and 12 Democrats.
Ohio House of Representa-
be held liable for manufacturing Each is limited to two four-year
tives: As you know, there are 99
practices that were legal when they terms. Even-numbered districts will
House districts in Ohio and all those
were performed. The lead based be put to a vote in 2008. There are 6
seats are up for election. Each dis-
paint groups wanted about $10,000. former State Representatives that
tricts represents about 110,000 peo-
per house to remediate the lead due to house term-limits are now
ple. Currently, the Republicans hold
based paint problem. You are ask- running for new senate seats.

OOHIO
HIO R
REHAB LOANS
EHAB L OANS
COLUMBUS - CINCINNATI - NO. KENTUCKY - DAYTON
CLEVELAND - AKRON/CANTON - TOLEDO - INDIANAPOLIS
------------------------------------------------------------------------------------------------------------------------------------------------
OHIO REHAB LOANS has private money to lend
for all your rehab deals: FREE TENANT REFERRALS
x Up to 100% of purchase and Fix Up Costs GDREIA and the Montgomery County office of Family and
Children First have entered in to a joint agreement to provide
x Stated Income, Quick in House Appraisals referrals to Landlords of prospective tenants from several
x FUNDING in 5 business days local non-profit agencies. These offices work with various
homeless and displaced residents. An agency with a prospec-
x Up to 70% of the After Repaired Value tive tenant can now send out a blast email to all participating
x Will fund 1–12 Units Plus Light Commercial landlords with information on the prospective tenant such as
income, number of people in the family, number of bedrooms
x Can Fund Multiple Deals needed and rent price range required. If you have a unit that
x 660 Middle Credit Score Preferred might fit that criteria, you can then call the agency and discuss
the rental. You will also have the opportunity to talk to the
x No Prepayment Penalty, Interest Only family and screen them however you want.
Payments
To participate in this program, you may send an email to:
x We provide pre-approval letters to accompany [email protected] and request to be put on the “listserve”
your purchase offers for the tenant referrals or you can call 937-225-4218 or 937-
Call 614-433-0570 or Toll Free 866-525-4133 or 225-4631. You may also call Mike Baughman who is
visit us online at www.OhioRehabLoans.com for GDREIA’s representative to the Montgomery County Homeless
more information. Solutions Policy Board at 937-227-2929.
GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION 19
GDREIA Board Meeting
The August Board meeting was called to order by Jerri Todd, President at 5:02 p.m. Those present: Mike Baughman, Mike DiFlora, Ed
Evers, John Grosmann, Marsha Grosmann, Larry Hudson, Art Jones, Sham Reddy, Paul Ragland, and Jerri Todd. Absent: Dave Murray.
MINUTES:
John Grosmann made a Motion: Approve the minutes from Program: Marsha Grosmann distributed a schedule of
the July Board meeting Approved. programs for the remainder of the year. John Grosmann
TREASURER REPORT: made a motion: Mail postcards for the September meeting
John Grosmann distributed the Treasurer’s report from June. to the registered landlord list. Approved. Will try to get
Cash available as of June 30 was: $8,750.66. Mike Baughman sponsors for the mailing.
made a motion: Approve the Treasurer’s report as distributed. Workshops: Sham Reddy passed out his report on the
Approved. Authorization for expenditures: Mike Baughman July Workshop. Net income $196.50.
made a motion: Approve paying $618 for Liability insurance Government Relations: John Grosmann reported
Approved. Mike Baughman made a motion: Renew NFIB mem- meeting with several of the local officials and with the
bership at $250. Approved. Trotwood City Manager and Housing Inspector. He also
REPORTS: has asked that GDREIA and GDAA be a part of the First
Member Relations: Theresa Welch reported there were 14 Tier Suburban Committee.
renewals and 4 new members in May and 12 renewals and Cash Flow: Laura Ceville reported that Darrin Carey had
4 new members in June. She still hasn’t received a new headed up the July meeting. There were 8 adults and 4
member list or the guests to member conversion numbers children. The next Cash Flow game will be September 25.
from MEI. REIA Manager: Paul Ragland reported that REIA Man-
Library: Mike DiFlora sent a list of GDREIA equipment ager had gotten the GDREIA data base August 5.
inventory stored in the Library cabinets. Jerri Todd asked He is getting a second domain name for GDREIA
that each Board submit what GDREIA “stuff” they may have. (GDREIA.biz). REIA Manager is Verisign compatible.
Commercial Members: Ed Evers presented the following
NEW BUSINESS:
companies for approval as Commercial members:
Volunteers are needed. Art Jones is to put together a Vol-
COMPANY MOTION MADE BY DECISION
unteer recruiting Pizza Party in the near future. Have
Real Living (Cindy Comchoc) John Grosmann Approved interest sheets for them to fill out
Ronman Investment Gp. Larry Hudson Approved
ADJOURNMENT:
Sherwin Williams John Grosmann Approved
The meeting was adjourned at 5:50 PM. The next regular
Norris insurance Mike Baughman Approved
Board meeting will be August 21, 2008 at 6:00 PM at the
Internet Country Club Mike Baughman Approved Hickory Center.
(Monarch Cancun)
— Marsha Grosmann, secretary
There was no report on guidelines for a Commercial member.
Ed Evers was asked to have a draft for the next Board meet-
ing. Members that are upgrading to Commercial status pay
$250 and will be rebated their unused General Membership
fees. Sham Reddy will talk to Jeff Bonham about his dues.
SING: Laura Ceville submitted a report that there was a
small turnout (5) at the July meeting. The next SING will

!
be August 16.

GREATER DAYTON REAL ESTATE INVESTORS ASSOCIATION, INC.

PMB 345, 3195 Dayton-Xenia Rd., Ste 900, Beavercreek, OH 45434 • Phone: 937-586-3726 • Fax: 937-586-3699
MEMBERSHIP APPLICATION
(Members agree to abide by our Code of Conduct)
n General $125 Commercial: n Bronze - $250 n Silver - $750 n Gold - $1,250 n Platinum - $1,750
n I voluntarily contribute an additional $5.00 to the OREIA PAC to preserve my rights as a
Real Estate Investor (corporate checks prohibited for the PAC)
n Check Enclosed Credit Card: n MC n Visa n Discover n American Express
Name ______________________________________________ Spouse’s Name ________________________________________

Company name ____________________________________ Address ______________________________________________

City________________________________________________ State__________________ Zip Code __________________

Home Phone ________________________ Work Phone ________________________ Fax Number ______________________

Would you like your name published in our members-only telephone directory? YES n NO n

Email Address: ____________________________________ Who told you about us? ________________________________________

 Presorted
The Voice of Real Estate
Standard
Investors Working Together
U.S. Postage
GREATER DAYTON Real Estate Investors Association POSTMASTER: PAID
Visit our web site at www.gdreia.com Please deliver by 29 August 2008 Dayton, OH
BOARD MEMBERS Permit 644
* term expires 2008 ** term expires 2009 *** term expires 2010
PHONE FAX E-MAIL
President:
Jerri Todd*..................222-3277. . . 222-3361 . . [email protected]
GREATER DAYTON
Vice President:
REAL ESTATE INVESTORS ASSOCIATION
Sham Reddy**............427-2626. . . 306-1445 . . [email protected] PMB 345, 3195 Dayton-Xenia Rd., Ste 900
Secretary: Beavercreek, OH 45434-6390
Marsha Grosmann***.429-3916. . . 429-3916 . . [email protected] Phone: 937/586-3726 • Fax: 937/586-3699
Treasurer:
John Grosmann* ........429-3916. . . 429-3916 . . [email protected]
Members:
Mike Baughman** ......227-2929. . . 227-2930 . . [email protected]
Michael DiFlora** .......776-1541 . . 754-9696 . . [email protected]
Ed Evers***.................470-7384. . . 436-5069 . . [email protected]
Larry Hudson*** .........478-4437 . . . . . . . . . . . . . [email protected]
Art Jones*...................623-3279. . . 885-7891 . . [email protected]
Dave Murray* .............335-3652. . . 335-7526 . . [email protected]
Paul Ragland*** .........902-4477 . . . . . . . . . . . . . [email protected]

COMMITTEE CHAIRPERSONS
Commercial: Member Relations: SING:
Ed Evers Theresa Welch Laura Ceville
Gov’t Relations: Workshops: Website:
Derrick Strahorn Sham Reddy Marsha Grosmann Address Correction Requested
Library: Newsletter: Cashflow Club:
Michael DiFlora Tom Di Nino Laura Ceville
Program: OPHP Coordinator: Community Relations:
TBD Paul Ragland Kelly Robey
Public Relations: WINGS:
Marsha Grosmann Kelly Robey
Janice Kemmer MEMBERS OF THE
OHIO REAL ESTATE INVESTORS ASSOCIATION

Laura Ceville can be reached at 937-427-4521 or [email protected] AKRON/CANTON REIA REIA of TOLEDO
330-786-0258 419-327-8427
Larry Hudson: phone: 478-4437; email: [email protected]
Janice Kemmer: phone: 581-0507; email: [email protected] INVESTMENT PROPERTY Mansfield Area REIA
Theresa Welch: phone: 232-1593; email: [email protected] OWNER ASSOC. 419-526-2931
513-856-7722
Newsletter Contact: Phone: 689-3603 or 572-1795; email: [email protected] Trumbull County
Kelly Robey: Phone: 626-7934; email: [email protected] FOSTORIA HOUSING 330-856-4314
Contacts for other Committee Chairpersons are under Board Members above. PROVIDERS
419-894-6547 Defiance Henry
419-762-5988
REIA of CINCINNATI
The Greater Dayton Real Estate Investors Association, Inc. (GDREIA) is a private, 513-829-4446 MARPA
non-profit educational organization. We are a charter member of the Ohio Real Estate 740-387-1840
Investors Association (OREIA) and a member of National Real Estate Investors Assoc. REIA of COLUMBUS
614-644-4289 TRI-COUNTY
(NaREIA), National Federation of Independent Business (NFIB), Greater Dayton Apart- 330-345-3012
ment Association (GDAA), Dayton Area Board of Realtors (DABR), Dayton Area Chamber GREATER DAYTON REIA
of Commerce (DACC), and Xenia Area Chamber of Commerce (XACC). 937-586-3726 STARKE COUNTY
Information and news presented in this publication, and at group meetings, is not PROPERTY OWNERS
to be construed as legal advice. Opinions and viewpoints are those of the author (or CLARK COUNTY PROPERTY ASSOC.
the speaker) and not necessarily those of the organization or its Board of Trustees. MANAGEMENT ASSN. 330-488-1916
937-323-2641
GDREIA does NOT exist to render, and does NOT give legal, tax, financial, or other ASHTABULA COUNTY REIA
investment advice. We disclaim all liability for the actions taken or not taken as a result KNOX COUNTY 219-988-REIA
of communications from and/or to its members, trustees, speakers, and any employee. 740-393-2687
Each member should consult with his/her own attorney, accountant, certified NORTH COAST REIA
TIFFIN AREA REIA 440-808-9717
financial planner, and/or Realtor for professional legal, tax, investment, and /or finan- 419-448-7212 (Jerry)
cial planning services when considering real estate or other investments. Real estate, MAHONING VALLEY
like any other investment, involves a degree of financial risk. LANDLORD ASSN.
GDREIA does not discriminate on the basis of race, color, religion, sex, disability, 330-824-0023
familial status, or national origin. The editor reserves the right to reject any advertis-
ing or articles for publication that may be a violation of anti-discrimination laws. For current meeting times and locations,
Send newsletter articles, classified ads or other materials to Newsletter Editor, please visit the OREIA web site at:
PMB 345, 3195 Dayton-Xenia Rd., Ste 900, Beavercreek, OH 45434. Deadline is the http://oreia.com/contacts/Associations/associations.html
5th of each month. Publication of ads in this newsletter does NOT constitute or contact OREIA Executive Director Jerry Conley,
GDREIA’s endorsement or approval of any products or services.
toll free 866-448-7212.