All Forum Posts by: Ozzy Smith

My name is Ozzy Smith and I'm located in Dayton OH.  I wear many hats as I'm a full time RE investor.  I currently own, and manage multiple businesses that all involve real estate.  These range from being a licensed RE agent, to construction company owner, to landlord, and even the founder and board member of a non profit company registered as a 501C-3.

The 501C-3 was created to solve many problems.  In many communities vacant/abandoned houses are multiple, and usually are unobtainable to those that actually have the means and desire to do something good with them.  The neighbors hate it, the city isn't getting any revenue from it, and it's often times a burden to enforcement agencies because of constant code violations and criminal activity.  THE HOUSING & COMMUNITY DEVELOPMENT CORP was designed to fix these problems and as an added benefit use the money created from it's services to fund community outreach programs that foster entrepreneurship in the same areas.  By utilizing such a program, many opportunities are created for the community and INVESTORS alike.

The opportunity for investors is 

1.  The ability to purchase properties WELL BELOW market price that are currently unavailable to the public

2.  Lending opportunities

3.  Charitable contribution opportunities to an organization that will directly reinvest funds into something that will       benefit real estate and business in a targeted area and receive a possible tax credit to YOUR BOTTOM LINE

4.  Possible partnership opportunities

5.  Learning opportunities on how to do this in other places outside of Ohio

HCDC is currently putting together marketing materials and presentations on each of these opportunities and scheduling informational meetings about each.  Each opportunity is uniquely different and presents vastly different outcomes, potential, and risks.  If you would like to learn more please reply to this post and I will be happy to schedule a time to answer your specific questions and send information pertaining to the opportunity that interests you the most.

@Murali I live and invest in Dayton as well as own a construction company. I have worked with many OOS investors and would be happy to help any way that I can. If you ever want to know about Dayton drop me a line

This is the type of thing I do in Dayton. If there’s anything I can help you with drop me a line

Thanks Eric for the shout out. I agree with what @Darrin and @Gary said earlier only now I'm the third style of Dayton investor. I almost never invest in rentals outside of Dayton City limits. If I'm looking for cashflow the city is where I find it to be the best. I'm actually getting decent appreciation bc of the influx of investors who are rehabbing things but I don't know how long that will last or how much of the prices are inflated. Either way I'm in it for the cash now so it works for me. I also have several partnerships with OOS investors and that's where we invest. If I want flips or appreciation I'd probably look elsewhere. Like Gary said though no need to leave my comfort zone and like Darrin I moved here 17 years ago with intent to only stay a year but I'm still here only bc of the RE.

@Jaysen Medhurst

I’m not applying for a business loan I’m trying to take out a little cash and refinance out of my hard money loan at a 75% ltv 

Do you ever feel like despite your best efforts things just aren't happening or at least not as fast as you would like?  Do you feel like you are doing all that you can do and it's just not enough and wander when you will finally succeed?.... ME TOO!

This post is going to be a little something for everyone.  For the beginner, you may read this and wish to be where I am.  For many, I believe you will relate to my story and find yourself asking the same questions as me.  For those that have made it past these first two steps, PLEASE SHARE YOUR STORY and help motivate the rest of us.

MY STORY

I started investing in RE around 2014.  I was recently divorced, basically unemployed (self employed with a new business - what's the difference right), completely broke and a credit score of 515 (would have been better having no credit).  I just knew I wanted to do RE Investing so I started to read books and network and anything I could to learn.

Soon I met a guy that changed my world and told me "never let money stop you from buying real estate... if you find a good deal money will always follow".  Fast forward 3 weeks I bought my first property and then 14 over the next 10 months.  I thought I made it!  Looking back some deals were good and some not so much but I learned it could be done and I never looked back.

Now in 2020 I have changed my circumstances drastically.  I make decent money (still self employed but very much in demand), recently remarried with a great family life, and at the time of this post have a credit score of 740!  I have 14 rental units that I own free and clear, and basically am debt free.... so what's the problem?  I BELIEVE I'M DESTINED FOR MORE BUT I'M STUCK!

I have done well over 20 RE transactions from flipping, to rentals, to wholesale deals, partnerships, etc so I have a very good grasp how this whole investing thing works.  I have a plan, I have been working the plan, but still feel like I'm not gaining any ground.  For the past 2 years I have been busting my tail sinking every dollar I make into fixing my credit, getting out of debt and building a business that now does about $500K per year with a decent bottom line, only to be told yesterday no from a couple of banks that they won'y lend me money!

I have a great business plan, plenty of experience, income to support the debt, and a track record to show I always pay my debts, BUT IT'S STILL NOT GOOD ENOUGH?!

Right now I'm feeling discouraged, wandering what I'm doing wrong, and how do I achieve the greatness and lifestyle that my family deserves.  I'm constantly networking, posting content, and working through deals, but it just doesn't feel like I'm gaining as much ground as I should with the amount of work I'm putting in.

Whichever group you see yourself in that I referenced above, feel free to add your comments here.  I'm always happy to help those trying to get to where I am, others like me achieve more together, and definitely looking for advise from those that have made it to where I want to be in my journey! 

As many have mentioned here …. I believe Dayton OH is the best place in the world to invest. I live here locally NOW, but am not originally from OH. I moved to Dayton, just for the summer - in 2003! I have never left simply because of the opportunities available here in RE. I have been doing very well personally as an investor, and have helped a few others get started here as well. If you want to chat more let me know how I can help Ozzy

@scott Goulet I moved to Dayton just for the summer (in 2003) and stay only bc of the RE. I have several rentals that I own personally and a few units that I have partnered with OOS investors that I have never met and they have never been here. I love the opportunity that Dayton offers and am getting great returns for myself and my partners.

@Da Shiek Woodard I personally invest in Dayton and have created multiple businesses with oos partners that specialize in this type of investments. As far as what @Cody Davis said about not able to find 2% deals are absurd.  I agree with his assessment of some over priced deals in some areas but assuming everything under 100k is in a high crime neighborhood is a very bold statement to make and I believe wrong. I’d be happy to show you MY PERSONAL portfolio that has plenty of these “undesirable “ properties that have been getting over 2% for a consistent time and yes I do account for ALL EXPENSES including cap x, vacancy, etc.  if you would like to chat let me know 

@Nathaniel Symonds

I'm sitting here shocked at the feedback you are getting.  I understand the frustrations that you are probably feeling right now because most are telling you that your ideas are wrong.  I have been told that all of my investing career but yet I keep making money and continue to grow.

So far in this thread I have seen very little advise and lots of opinion based on personal experience other than the points that @Christian Rojmar has brought up.

With the technology available today and the services provided by 3rd party EXPERTS I think investing at a distance isn't much different from a risk standpoint than investing close to home as long as you do your homework.  The same struggles that keep me from expanding OOS are the same challenges I face in my own local market - A TRUSTED NETWORK.  Lucky for me I'm in a great RE market and don't have to go OOS.  If I did (and I'm considering it even now) I'd give you the best advise I've ever gotten in business - PARTNERSHIPS

That is how I started in RE and how I continue to operate ALL of my businesses today (more than 1)

My background is in the construction field (drywall/painting by trade) however the typical remodel usually involves more than just those two items which I'm not an expert at and now as a business owner don't have time to even do those things.  I hired a "Foreman" to practically run the operations from start to finish on the construction side and my job is to make sure we always have more jobs to send him to and to make sure we are making money.  It is structured to where he gets a salary, I get a guaranteed % of job mark up and then we split anything above that amount.  These incentives allow him to make more money the faster and better job he does and clearly defines roles that fit our individual area of expertise which keeps us happy and not doing the parts of the job that ultimately we don't like or more importantly not good at.

That being said my RE business operates the same way (and yours can too).  I have partners that live OOS that have the same problem as you (one actually lives in CO).  They have money, but live in a place that the numbers just don't make sense.  There is also more to investing than money... you also have to consider the lifestyle that you want and what is most important.  Like you they have jobs and family and they don't want to subtract from those things just to have more money.

What we do are partnerships.  Just like in my construction business, we clearly define roles, each of us do our part and don't muddy the waters by trying to get involved in the others business.  We each only make money if the other does so each has accountability to the other and we simply do reports at regularly scheduled times to check the other's work.  To this day they (the OOS partner) have never seen the properties that we own, we have never met face to face and yet we all keep getting checks that are double digit returns and we love doing business together.

The moral to my story is come up with a plan and as long as you think it through and execute it properly don't let others who have never done it influence you with opinions that are not backed by experience.  Money can be made ANYWHERE and in EVERY market as long as there is a good plan in place.  Sometimes what it takes to execute the plan is more than a person is willing to accept so you have to create a new plan.  It sounds like you have seen this (that's why you are looking OOS) and that's ok.  Just come up with a new plan (think it through carefully) then go for it!