According to a recent article by Property Wire, Cincinnati is one of the top ten buyer’s markets in the nation.
Cincinnati, OH (PRWEB) August 20, 2012
Reinvest Consultants, LLC announces their endorsement of a growing national trend by investors to rehabilitate distressed properties and revitalize local neighborhoods.
Dan Lello, a Managing Partner at Reinvest Consultants, a local full service real estate brokerage that specializes in investment, foreclosure and other distressed property types, has seen firsthand the impact that individual investors and companies have had on improving Cincinnati neighborhoods.
Many Cincinnatians know about the well-publicized large-scale real estate developments, like Citirama and Cincinnati Center City Development Corporation (3CDC) projects that utilize City of Cincinnati partnerships and federal, state and local grants to benefit the urban community. What is sometimes overlooked is the contribution of individual real estate investors and smaller local real estate investment companies who revitalize the local neighborhoods one house or multi-family property at a time.
Local real estate investors find properties all over the Cincinnati real estate market that may be in danger of foreclosure or in other ways distressed and create a positive solution. They negotiate a successful acquisition of the property under terms that allow them to rehabilitate the property.
“Since 2011 we have facilitated approximately 300 of these types of transactions. There is an amazing impact that these individual projects can have as a whole for the city of Cincinnati,” says Lello. “These projects help increase property values in the neighborhoods and enhance the neighborhood image. They provide quality housing for renters or new homebuyers and bring people who care about improving their homes to the areas.” Lello goes on to say that, “they stimulate the local economy by putting people in the community to work and generating tax revenue for the city and local municipalities.” Lello estimated that these types of projects pump tens of millions of dollars a year into Cincinnati’s economy. He also discussed how the income the investors make allows them to continue the process of community and neighborhood improvement. “Since these investors rely on private funds instead of government grants or subsidies, it leaves those government funds available for projects like Citirama and 3CDC projects,” Lello explained.
Jim Bronzie with Bronzie Design and Build, a Reinvest Consultants client, is the perfect example of an individual investor making a significant difference. “Jim is just one of our hundreds of individual investors that use private funds to create positive outcomes from distressed houses here in Cincinnati. He does it day in, and day out, year after year, consistently pumping money and jobs into the Cincinnati communities,” says Lello. Bronzie stated, "I renovate and sell multiple higher end homes a year. When the production home building industry plummeted in 2008, many sub contractors were left with little work. Through the help of Reinvest Consultants and Realtors, I have been able to find projects that provide steady work for all my subs during this difficult economy. When we complete a project we have helped improve the neighborhood in many ways-monetarily, safety, aesthetically. Furthermore, we are renovating an existing home and making it feel new again...a building practice that is much better for our environment than tearing down a forest and building a subdivision 30 miles outside the city limits."
Warren Buffett, America’s most successful investor, considers distressed single-family homes an “attractive investment” according to the June 25, 2012 Forbes Magazine. Across the nation, rents are rising this year by 4% and they will continue to rise another 4% in 2013 states the National Association of Realtors. NAR also estimates that investors were responsible for purchasing 1.23 million homes in 2011. This was an increase of 60% from the 749,000 investment purchases in 2010.
According to a recent article by Property Wire, Cincinnati is one of the top ten buyer’s markets in the nation. Property Wire defines a buyer’s market as “one where buyers have more bargaining power, thanks to listings lingering longer on the market and seller’s being forced to cut prices.” The combination of rising rents and lower home sale prices should continue to bring more investors into the market.
Cincinnati had 8,181 foreclosures in the first six months of 2012 according to the Toledo Blade. That is one in every 112 homes. With all these factors creating what some might call a perfect storm, real estate companies and investors, like Reinvest Consultants and Jim Bronzie, should have plenty of opportunities in the near future to continue revitalizing the housing market in Greater Cincinnati.
About Reinvest Consultants, LLC
REINVEST Consultants, a full-service real estate brokerage, specializes in buying and selling Cincinnati foreclosures, short sales and other distressed real estate as investment property. We also offer our real estate investor network exclusive deals – not available on the MLS. Reinvest Consultants has years of experience, has done hundreds of deals and knows the Greater Cincinnati investment property market inside and out.
Real estate investors who want to learn more about how they can invest in foreclosures and distressed properties and help revitalize Cincinnati neighborhoods can visit Reinvest Consultant's website or contact one of the Reinvest Consultants investment specialists at 513-823-2200 for more information.
*Written by Chris Brantley on behalf of Reinvest Consultants, LLC