It is time that we do something for Military and first responders. 

As the founder and broker of RED Diamond Realty and a first responder myself, I think it is time we recognize that these people are going well beyond what is a job and what is a career and what we pay them is not enough. 

The number of New York Firefighters getting the Covid 19 virus is far beyond that of the typical population. Because that is their job. Are firefighters not showing up for work? No. Are nurses using sick days to stay away from the hospitals? No. Is the National guard on every corner exposing themselves to the virus for the better good of the nation. Yes. 

We need to somehow start to offer incentives to first responders and the military beyond a paycheck that in most cases, is less than the average American. In Italy yesterday a nurse who was exposed to the virus killed herself. Last year the number of suicides by firemen surpassed deaths from fire for the first time in history. 

We cannot expect these incredibly dedicated people to protect us they way they do without some form of recognition in return. I propose that my real estate brokerage will sell any home of a first responder for just a 1% commission. We will list their home, offer the same programs that we offer to every homeowner for about 7% but if that homeowner is a EMS,Fireman, Military or police we will charge just the 1% with no obligation in a listing agreement. That means that if at any time the homeowner feels that we are not doing a great job they can get out of the contract with just a text or email. we will give them an unconditional release. So 100% satisfaction is guaranteed. 

I ask all of the other real estate brokerages to do the same. Lets offer a hand out to these amazing professionals who are under so much more pressure than the rest of is in their daily employment. 

First responders and military give much more of themselves than most of the rest of us. I think we should start offering them something in return. 

Tom Diamond
RED Diamond Realty. 

Dec. 5, 2019

There is great opportunity out there but...

It is the first few days of December 2019.

     The television is seemingly on one news channel with different names. Depending on which channel you watch the impeachment hearings are being dished out with completely different viewpoints. 

You can get upset and scream about, well so much of it. Remember these people are our employees. If you hired someone to run your household and every time you turned around the employees were fighting each other and doing nothing but they had maxed out your credit cards and taken out a huge home equity loan against your house would you be angry? 

While everyone is watching the employees fight the real investors like myself are gobbling up properties like crazy and selling off other properties like crazy. There is as much money as you can pick up off of the ground if you know where to look. I just sold three properties. 12100 Oak Park in Garfield heights, 13209 Orme IN Garfield Heights and 1493/95 Parkhill in Cleveland Heights. They sold for $79,900. 74,000 and 115,000 respectively. Three years ago I purchased them for $32,000, 28,000 and 41,000. They needed some work but they were also rented out in those three years. The rent more than paid for the homes and the entire loans on the properties. I now pocketed $250,000 from those properties.

I just purchased 2986 east 59th street for $13,000 and added $1,000 in repairs. That is all it needed. Lets call it $15,000.

The new tenant pays water and sewer and $600.00 a month. Taxes are about $400.00 a year so I now know that I will earn about $6,000 a year after taxes and insurance. forever. Guess what I plan to do with the remaining $245,000?

Lets say that house was a lucky deal. Even though it is one of hundreds we have done over the last three years. Lets say that you need $25,000 all in meaning updated floors, electric, plumbing, roof repairs etc. Well unlike many products and services around the country rent really never goes below $600.00 a month. So that means we can expect at least $600.00 a month with insurance and taxes and the occasional eviction or moving tenant. Lets say half a month a year which is my average. So for every $25,000 we spend of your investment money or mine there is likely at least 11 months of $600 a month and one month of $300 for a total of : $6900 annually. To be safe I am going to say there are cost I cannot expect like plumbing breaking or electrical issues so that could be as much as $1,400 annually so I am really only making $5500.00 annually on my $25,000 investment. 

A minimum 22% net profit! At RED Diamond Realty we have been getting returns like this for years. 

Well you charge a management fee says the California or Russian investor so it is a lot less. Ok, I see where you are coming from. We may charge you $500.00 annually to manage your property for you but you forgot a few things didn't you? 

1) The home you just purchased is worth $40,000- $60,000 so you made profit if you just flip the home day one. 

2) The $500 is easily built into the $1,400 we added to the budget for unexpected expenses. 

3) Rents START at $600 and will go only up from there but you will still have only spent $25,000. 

4) you only used $2500.00 of your funds to borrow the $25,000. So the monthly payment on the loan is high, maybe it is as high as $300.00 a month. When it is all said and done your are making $2500.00 profit per year. Hmmmm. 

5) If you have a pension or are retired you can move your funds, penalty free , into what is called a real estate self directed IRA. That $25,000 that was earning you $2500 annually and you thought was awesome is now making twice that not including the equity growth in your property. 

6) Unlike stocks, this will not disappear in a bad market. Your home and what you paid for it will likely always be available. 

7) My brokerage has been doing this for 30 years. We did not just go to a seminar, We did not see a guy on YouTube or watch property brothers. We know the real market and these are real numbers. We closed over a 100 of these types of transactions this year. 

8) It cost you nothing to hire us to get you in the same position that my agents and I have done for ourselves and so many other friends and family. 

9) We have made mistakes over the years. I would say thousands of them. Broken pipes, stolen copper ( we use only pecks for plumbing) accepting cash from tenants in a hurry. If there is a mistake you can make I am pretty sure we have made it and we have learned from it. So you get the advantage of 30 years of what to avoid and what to do.

10) I know of nothing else in this world that turns as little as $2500.00 into something with $20,000 in built in equity from day one, $2500.00 in net return annually and more than a 22% net return on investment that only climbs higher each year. You can only do this, as far as I know, in Northeast Ohio ( doesn't work in Detroit) and you can do it with some other brokers but we have been doing this and only this for decades. We have a secret recipe with hundreds of very small incremental items and it adds up to a great way for you to go as an investor. An example of something we do is we negotiate discounts from the insurance agency, the property management company and the property taxes. We provide a large quantity of homes to our service providers but they have to greatly reduce the overall cost they charge. This keeps our overhead very low and the net income and profit very high. 

So you can watch the tele and go crazy. Or you can email us here and get started on setting yourself up financially for the rest of your life with a proven, working, real estate model. 

Thanks for your time. 

Tom Diamond 
Broker/ Owner
RED Diamond Realty

Posted in Market Updates
July 31, 2017

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