All Forum Posts by: Adolfo Cuellar

@Mike Savage Definitely requires a license. There's a 'Property Managers License' that you can get in about 2 weeks for little money. 

If you don't get the license and collect money for what you're doing, you probably shouldn't talk about it much..

Thanks @Grace Widdicombe

@Grace Widdicombe - where is John Helmic speaking? 

I tried googling it with no luck

Hey @Chris Pebley, 

Why Lake Oswego? 

I know it well. In some ways it's worth it's price point. Are you looking to use the VA loan for a different spot in Portland?

Have you looked at Brooklyn (a neighborhood in Portland)? 

Why hire professional landscapers when you can just do it yourself?

We were two weekends deep into raking, macheteing and whacking the seller's HUGE backyard. With only about a week left till the house was set to hit the market.

I'm standing on the front porch adjusting a potted plant into the perfect position when I hear liquid behind me...

I turn around and see the seller pouring gasoline over a hill of shredded yard debris..

"What are you doing?"

"It's goin' down dude!"

"You're gonna burn that whole pile of yard debris?"

"Yeah"

"That's gonna cause a whole lot of smoke man"

"It'll be fine, we do it like this on the island all the time brah"

He loves Hawaii.

The fire was lit.

10 Minutes later, the block becomes mysteriously busy with cars driving by..

Two boys on bikes, not more than 13 years old, show up and say "There's a crowd of people coming man, somebody called the cops. You guys are in trouble."

The seller realizes that the pressure cleaner is out of fuel and decides to walk over a near-by convenient store for more fuel.

Shortly after his departure, the Fire Department arrives.

I'm still standing on the front porch of the house. Alone.

"Hello officer"

"I'm not a cop"

"Oh"

"What's going on here?"

"Oh, the owner of the property decided to burn the yard debris instead of getting a truck to come out and pick it up..."

"Ok. First of all, you can't do that. If you were to do that, the largest it can be is 4X4 and it has to have a concrete barrier and has to be less that 12 inches tall. This pile here is about 10X12 and about 5 feet tall..."

"You know, know I'm sorry, he must not have known..."

"We're gonna have to put this out."

"Ok."

"Is he here?"

"No, he left just a few minutes ago to get more fuel for the pressure washer.."

They pulled out the hose and thickened the carpet of smoke that filled the neighborhood as they extinguished the fire.
The firefighter* approached me with a small piece of paper..

"We won't fine you this time but we'll leave you with a warning because you didn't know but now you do."

"Ok"

As he is getting back in his truck, the seller appears..

On a positive note, this can be seen as a marketing advantage considering the amount of attention drawn to the house. Although, I don't think associating smoke and fire to a house draws the right buyer...

Additionally, after moving the left-over residue, a huge black circle was stained onto the ground of the front yard.

Cutting corners = The Black Hole

@Sarah Karakaian

Portland remains to so many people the best deal on the west coast. Considering it's size, it's not just the best deal but has room for expansion and enough attention to sustain expansion. The urban growth boundary keeps inventory in check and prices at a steady rise, in my opinion. 

Just a quick perspective check on Portland's awesomeness! 

Cheers, 

A

My question is, what are your goals?

Are you simply trying to figure out how to make more money off of these lots? 

If money is the most important objective and you'd like to keep the houses in tact, you could go through the lengthy process of finding a lot for the houses, moving them, then putting apt buildings on the lot and you'll be making the most out of everything by passively collecting on the tenants in the apartments and the houses but you will have spent the most time and money. 

To spend the least and get the most money, mowing the houses over is the quick and easy answer at the expense of great craftsmanship. 

Maybe a middle ground would be to move one house and build a small multifamily there of 7 units or less. 

I had a client that wanted to move her house. She found the lot and the whole thing fell apart because of how long it would take and how expensive it is. Regardless, it happens all the time. 

Thoughts?

"There are no signs that a real estate bubble is about to burst as far as I can see, but maybe I'm wrong?"

Lending and trading practices are not showing the same signs in the same volume as we saw in 2008. Price changes and Days on Market have risen since the end of July which is normal based on seasons but has been more drastic this year than last. That's what I meant when I said the market is 'chilling out.' Nonetheless, values are still rising.

Considering the 'inevitable' rise of interest rates from this point on, now is still a good time to buy IMO (if you're financing with a bank), the near future probably won't be.

'Do they at least not look at these credentials as rigidly?'

I'm not a lender. In general, it's hard to say because they look at more than just credit so there are aspects that can offset the credit that may not be mentioned here. The best thing to do is to speak to a lender and have them get you a pre approval- if you're at that stage. If not, have them clarify what needs to be done for you to get to that stage.

@Bill Gulley's idea to rent the house that you while developing a relationship with your landlord that, ideally, leads to a seller financing of the same house you're renting - FANTASTIC approach for someone in your shoes. Just be attentive of the relationship with your landlord right from the beginning.  Be honest with yourself about how realistic this is based on the landlord's personality right from the beginning. 

'FHA Loan route' - They're fine, if you qualify. Speak to the lender to see if you're at the level of even qualifying..

Sacramento might be emerging in some cool ways- It's close(ish) to Portland, where I am as well, and has a great culture with reasonable prices. It's where I see lots of people in the music scene leaving Portland going to..

Hey @Chris M., 

As an agent in Portland, I must clarify that the majority of the activity is on the market because the media makes it unavoidably clear to all sellers in this city that the money is onn the market. Off-market deals have been MUCH more practical during times when interest rates were higher and consumer confidence was way lower because it's almost the only thing sellers could get. Much of the material that your digesting regarding seller carries contracts was written during these times, as well the info that 'Guru Seminars' project. 

Having said that- nothing is impossible. And if you want something, you can get it. You may have to wait till our local scene chills out (which is happening) and/or until your credit is better and you can leverage your money. Downpayments on conventional loans are as low as 5% so that $60,000 downpayment you mentioned can be a bit exaggerated and working with banks might be easier than you think. 

My experience has shown that First Time Home Buyer Programs don't pardon bad credit and may only offer a slightly lower interest rate and/or downpayment. There are grants for First timers as well but your usually not eligable if your income and credit don't meet the criteria. 

Step 1 - get your income up. Cash is king. Whether your working with banks or individuals - handing them $20k+ makes everything way easier. 

And having that $20k+ changes the way you think about what you're investing in and how to approach every opportunity.

Let me know if I can help further-

Adolfo