All posts by Nathan Ruffing

Delaware to Columbus Bike Ride

1st of July 2017

There is an almost continuous dedicated bicycle path from downtown Delaware that reaches to downtown Columbus. Join me to enjoy this path on Saturday the 20th of May.

Leg 1

7:15 – Depart from Havener Park where there is easy parking, for Murphy Park in Powell. 8.0 miles.

Leg 2

8:15 – Depart Murphy Park for Antrim Park. 8.4 miles.

Leg 3 and Brunch

9:15 – Depart Antrim Park for Jack and Benny’s and the Blue Danube for brunch. 6.0 miles.

10:00 – brunch at Jack and Benny’s and / or the Blue Danube.

Leg 4 and Finish

11:00 – depart brunch for the last leg past Ohio State to downtown. 6.6 miles.

12:00 – finish at Scioto Audobon Metro Park for pick-up and shuttle back to Havener.

Total: 29.2 miles.

If rain, make-up day is Saturday the 8th.

Check back here for updates and ore details!

Comment below to tell me where you’ll be joining, or e-mail me at nate@nathanruffing.com

Personal Finance

Buying a home requires planning and preparation. The better prepared we are, the better deal we get from the bank, and the better deal we can get on a house. As a real estate agent, I see the benefits of financial planning (or disadvantage if lacking) with all of my clients! Financial planning = home ownership = financial planning!

Vineyard Columbus Financial Ministry

Vineyard Columbus church has excellent no pressure small groups to give you support in your path to financial freedom:

http://www.vineyardcolumbus.org/ministries/financial-ministry/about/

eFinPLAN (.com)

Kent Irwin is a friend of mine and a financial minister at Vineyard Columbus. He operates this reasonably-priced financial planning website here called eFinPlan. The important thing is to get a plan and stick to it!

Dave Ramsey

Introduction to Dave Ramsey

How to Budget

Budgeting Tools

 

My 2 Cents: The Big Choices, and That’s It

In the end success comes from our own discipline, restraint, and choices. We know what to do. Doing it is the hard part. The small daily choices are the really difficult ones because we have to stay strong every day, day in and day out. Fortunately, there are three main decisions that really matter: easy credit, our car, and our house.

Cut up all but one credit card. Pay it off every month. If you can’t handle that, cut that card up and go all cash. Difficult, but simple.

Save for a car and only buy what you can actually pay cash for. Difficult, but simple.

Buy a house instead of rent, and buy one that you can afford. Take care of your house and your house will take care of you.

After these big choices, relax on the little ones. Go out to eat. Enjoy cable TV. Tip a little extra for those hard-working service job employees who are in the same struggle you are and help the next person out because your a financial winner now…

Buyers, Get an Agent

Most homes for sale are listed on the MLS with a seller’s real estate agent. Most of those are listed under a contract called an “Exculsive Right to Sell,” with the seller’s agent and buyer’s agent commissions already agreed upon. That means that a buyer’s agent is already paid for if you buy the house, whether you have an agent or not. The seller pays for it from his proceeds. Make an agent earn that commission by working for you!

So where does the money go if you don’t have an agent? In that case, the seller’s agent usually is entitled to both sides of the commission.

Buy Linden

Click here to see available houses in Linden.

Are you a renter in Linden? This is for you. There is a good chance you are paying more in rent than you would pay monthly for a loan to buy a house.

When you own a house, you save money, and improve your neighborhood, while building equity. Equity is the amount of money your home is worth more than the amount of money remaining on your loan. Equity increases as you pay your loan.

The first step is to talk to a lender and fill out an application. It is worth the try!

These Lenders Want to Hear from You:

American Mortgage Service Company

American Eagle Mortgage in Columbus

  • Ask about a 203K loan, which allows the buyer to borrow money to complete required maintenance.

Both of these lenders’ offices are close to Linden.

Below is a spreadsheet of the typical costs of operating a rental house in Linden. It shows that you are already paying enough … but you need to take credit for what you are paying by buying a house! If you either have minimum credit or can pay a 20% down payment, there is a chance you can own a home by just moving to another block or even by offering to buy the house you already live in.

Approximate With 20% Down Payment

5% Down Payment with Good Credit

Realtor® Registered Trademark Alt Code

Quick tip for Realtors®, you can quickly type the registered trademark “circle R” by holding the ALT button and typing 0174. This works on PCs.

ALT + 0174 = ®

ALT + 0153 = ™

ALT + 0169 = ©

Money

¥ = ALT + 0165

€ = ALT + 0128

£ = ALT + 0163

¢ = ALT + 0162

Math

¹ = ALT + 0185

² = ALT + 0178

³ = ALT + 0179

· = ALT + 250

° = ALT + 0176

¼, ½, ¾ = ALT + 0188, 0189, 0190 respectively.

√ = ALT + 251

π = ALT + 227

https://www.keynotesupport.com/internet/special-characters-greek-letters-symbols.shtml

Foreign Languages

ñ = ALT + 0241

? = ALT + 063

¿ = ALT + 168

Just search “alt code … ” for more.

Buyers, Get an Assumable Mortgage Loan

You should ask your lender about an assumable loan. This means that if you sell your house in the future, you can pass the loan to a qualified buyer. Typically, FHA loans are assumable.

The market conditions are great to buy a house right now. Interest rates have risen a little, but can still rise a lot more. If you have an assumable loan, you have the option to offer a qualified buyer today’s market conditions by giving them your low-rate mortgage along with your house.

An assumable loan can make your home easier to sell with more buyers and at a higher price in the future.

More information here:

http://www.bankrate.com/finance/mortgages/assumable-mortgage.aspx

Ventures Update April 2017

695 Riverview Drive

As I branch out into other sectors of the real estate industry, I first want to take an honest look at my first major investment.

The following P&L is for 1Q 2017. See the adjustments below that convert the Net Income to a realistic monthly cash flow. It shows my vision for the property, and hence my enthusiasm since I purchased. I can finally show it on a P&L.

1st Quarter 2017 Actual

Adjustments to Net Income:
+$2500: taxes. This Q’erly P&L includes an entire half year payment.
-$1500: principle payments are not cash flow, just equity.
-$1000: one quarter of insurance paid at once in July.
-$525: 27 rent payments instead of the 28 shown.
= -$525: total adjustments to Net Income.
= $3,945 of actual realistic cash flow for the quarter.

= $1,315 of cash flow per month.

With $102,280 of total cash invested, that is a ~12.8% annual return. That is not a “home run,” that is a “single.”

So why am I happy with this “single”? In the sense that I want to do better in the future, I am not happy with it, but here are some mitigating factors:

  • I have been absent for much of the ownership of the property, and have solved many of the problems with cash, not with my own time. It has truly been passive.
  • I learned to hire a good manager. Much of that $102,280 cash is bumbling around with poor management. I have learned from my professional manager, Panzera Realty, about landlording and management since hiring them in Nov 2015.
  • The property continues to improve. The condition is better every year
  • We continue to cut expenses and raise rents with the market. This year we will sub-meter the water, and new units will rent without wall air conditioning units included. Even with these changes combined, we expect the same rent from the new tenants.
  • My original goal was to learn.
  • 9% matches the market.
  • We are well positioned for an economic downturn with a quality property at reasonable rental rates.

Columbus, Ohio Occupation

Real Estate Agent

I love it so far. It puts you on the inside. A must for full-time real estate career. New website! …

https://nathanruffing.com/realestate/

Uber Driver

Fun. More than pays for gas, but a waste of time. I drive a couple times a month still. I hope I always do. I do enjoy it.

Handyman

I will probably always do some handyman work. I enjoy it.

Kineomen

The holding company in North Carolina is positioning to invest in some sector of the real estate industry. Probably non-performing mortgage loans (NPLs).

Click here for info on NPLs. More details in a future post.

Simple-Kneads Gluten-Free Bread

We have a shareholder meeting at the end of this month. There is investment opportunity currently. Your only commitment is to sign an NDA. I do recommend.

Vino de Coco

I still plan on going there in person as soon as possible.

The Stock Market

I’m still out of the stock market.