All Forum Posts by: AJ Wong

Hi Sipan, 

Permitting is the STR secret sauce. I'm familiar with a few areas more east that perform very well and there are some active vacation rentals with healthy income records on the market there as well. I'll shoot you a DM with my contact details.

Similar to Realtor.com the leading real estate company Zillow announced it will disclose climate risk features such as: flood, fire, wind, heat and air quality risks. The changes should be integrated into the website and application by the end of the year. 

Zillow will also offer climate history of a property alongside custom tailored insurance policies and carriers. 

The author and article suggests to utilize the climate risk data before committing to an investment and be familiar with specific risks in your area—whether it’s floods, wildfires or heat waves.

They recommend these valuable tools to assess these risks:

• FEMA National Risk Index – Provides a comprehensive overview of natural hazards across the U.S., including floods, earthquakes, and severe storms.
• USDA Wildfire Risk to Communities – Offers detailed insights into wildfire risks for homes in specific regions, particularly useful for properties near forests or dry areas.
• Risk Factor – Analyzes flood, fire, and other climate-related threats for individual properties, giving you a risk score.
• Climate Check – Delivers property-specific climate risk ratings, covering heat, drought, fire, and floods.

Do you consider environmental factors like flood and heat when investing?

We'e had several clients seeking a second home/rental refuge from harsher climates here to the Oregon Coast this year. Many investors have shown preference with avoiding tsunami zones and high risk flood areas as well as greater clarity on anticipated insurance costs as part of their search criteria and due diligence. 

🌊 Sail smoothly to your next luxury vacation rental investment on the Oregon Coast. Now searching oceanfront, lakefront and oceanview STR's for sale is efficient and proven.

Our HOT SHEET currently features 100+ investment ready and worthy short term rental properties for sale on the Oregon Coast and beyond. 

Visit www.sesemisheet.com 

Anthony AJ Wong

Licensed Real Estate Broker in the States of Oregon & California

Fathom Realty 

541-800-0455

 The 30 year amortization is very niiice! 

Hillsboro, Oregon is a stopping point for many Submarine Cables of Fiber Optic bundles that come from around the world on the ocean floor. From here, and with the help of the massive Data Center build-up, Hillsboro, Oregon, is now the gateway to the future. Map courtesy of https://www.submarinecablemap.com/landing-point/hillsboro-or...

According to the Hillsboro Herald:

Hillsboro’s Data Center Market Booms in 2023

Hillsboro’s data center market experienced explosive growth in 2023, solidifying its position as a major player in the U.S. Here are some key highlights:

• Massive Construction Boom: With a staggering 280.8 megawatts (MW) under construction by year-end, Hillsboro’s data center inventory is poised to more than double, according to a report just issued by CBRE.
• Rising Prices and Low Vacancy: Average asking prices climbed to $147.5 per kW/month, reflecting increased demand. Additionally, absorption reached a four-year high in the latter half of 2023 (93.3 MW), pushing vacancy rates down to a four-year low of just 2.5%.
• Market Share and Preleasing: Hillsboro’s data center stock now represents 5.1% of the total primary market inventory. Notably, nearly all (93.4%) of the space under construction has already been preleased, highlighting strong tenant interest.
• Rapid Growth: Hillsboro’s inventory has skyrocketed 334% since 2020, reaching 262.4 MW by year-end. This surge is attributed to the ongoing construction boom, exemplified by Aligned Data Centers’ groundbreaking on a 72 MW project.

Despite power supply limitations, Hillsboro’s data center market thrived in 2023, attracting significant investment and becoming a highly sought-after location.

Top US Data Centers Areas: 

Northern Virginia - 48.3%

Dallas-Ft. Worth - 10.9%

Chicago - 10.8%

Silicon Valley - 8.3%

Phoenix - 7.0%

Atlanta - 6.1%

Hillsboro - 5.1%

New York / Tri-State - 3.7%

For the better part of two decades I've been involved in real estate in some capacity including but not limited to: mortgage & real estate broker, developer, project manager, STR owner/operator/manager, international investor and beyond.

The past five years here in Oregon I've focused almost exclusively on investor related acquisitions and sales of vacation rentals, multi family complexes and commercial real estate. 

Here are the five reasons serious (particularly luxury & commercial) investors should hire an investor focused and friendly real estate broker: 

- Market Insight: Seasoned investors will show you why the little things make a big difference. A local real estate broker might be familiar with a particular property and 'known' issues or problems. Another example would be an off market prospect that meets the investment profile or a neighbor that nobody wants as one. 

- Referrals and resources: Identifying an investment prospect is one thing, the due diligence, lending and team required to successfully close and mange it are another story. A good example of the value of a worthwhile real estate professional are the referrals and references of support services like lender recommendations. A local resource particularly for CRE (commercial real estate) can make the difference in the transaction equating to a quality investment.

- Expertise in local laws and rules: Investing in real estate is hyper localized not only for value and potential but in rules and regulations. For example; 80% of my business is servicing investors seeking vacation rentals where less than 1% of listings can qualify for a vacation rental permit. A professional that can navigate and verify permissions, usages and support due diligence are critical to profitable investments. Imagine closing on a vacation rental that can't secure a permit? Yikes.

- Execution: In current market conditions, of lower inventory and higher demand, timing is essential. Without a diligent and responsive professional, touring, offering and closing on a prime investment property of choice is less likely. There are exceptions to this rule, but there are an abundance of examples that had investors not been prepared to perform might still be shopping..

- Voice of reason: The 'best' real estate professionals are apparently the most honest. When it comes to investment brokers, somebody has to play devil's advocate or tell you no. Very rarely are properties or investments exactly as they initially appear. Due diligence (especially with more complicated transactions) often reveals conditions that are or were not available initially. The general strategy is to: A. Win the offer B. Validate that offer during due diligence When things change.. equivocally so should the terms. A great investor focused real estate professional is committed to the investor, not the investment. 

 Bonus* Time & Money: Investments are borrowed time. In development the shorter the better, and generally in everything else, the longer. In Real Estate terms, time is literally money. The right (or wrong) deal has opportunity cost. Typically a worthwhile real estate broker will save you time through efficiency and add at least equivalent value in actual dollars through effectiveness.  

🏁 Find HIGH ROI Oregon Investment properties with our proven search tool!

Designed for investors on tight timelines seeking the most lucrative investment opportunities throughout Oregon our CRE HOT SHEET streamlines acquisition, analysis and performance for portfolios of all shapes and sizes.

- RV & Mobile Homes Parks

- Storage Facilities - Up to 600 units* 

- Retail - Starbucks, Dutch Bros, Chase, Whole Foods

- Hospitality - Boutique and National Brands

- Multi Family Complexes - Small and Large Balance

- Industrial 

- Merchantable Timber 

- Land & Development 

🧩 Visit www.oregon1031x.com to browse and text 541-800-0455 for the secret pass code. 

👁‍🗨 Anthony AJ Wong

Licensed Real Estate Broker in the States of Oregon & California

Fathom Realty 

541-800-0455

Conde Nast Traveler recently announced their 'Top 10 Trips everyone in the US should add to their bucket list' and it features some impressive vacation regions and activities:

- Hot Air Ballooning, New Mexico

- Bluegrass Trail, Virginia

- Visiting Point Dume Malibu, California

- Horseback Riding, Wyoming

- Airboat tour Everglades, Florida

- Winter expedition cruise, Alaska

- Spiral Jetty, Utah

- Camping In Acadia National Park, Maine/Rhode Island/Massachusetts 

- Trekking the Bayou, Louisiana 

- Wine country, Willamette Valley & Napa Valley Oregon/California 

During the past four years we've helped investors acquire 50+ apartments throughout Oregon. 

Here are ten cities and areas that offer multi family investment growth and opportunity: 

Eugene  - The heart of the State. Anchored by OU and a charming and developing downtown. Affordable first time family homes. 

Springfield - Inspired the Simpson's..extension of Eugene. 

Corvallis - Anchored by OSU and central to everything Oregon. 

Hillsboro - A little known fact is that Hillsboro is one of the leading locations for Data Centers on EARTH. 

Klamath Falls - Recreational paradise with exceptional value. 

Salem - The State Capital. 

Astoria - Location and proximity to Portland and Washington. Vintage charm and modern demand. 

Oregon Coast - Majestic. The beach is always an attractive destination and Oregon is no exception. Very limited development and high demand. 

Bend - Very few places in the country with the density of luxury new construction properties being developed.

Ashland - Micro Bend. The quintessential PNW small town. 

Bonus: 

Albany

Medford

The Dalles 

Roseburg

Grants Pass 

We're seeing very favorable local financing with credit unions throughout Oregon in recent weeks and months. 

Several of our out of state investor clients are securing very healthy terms on CRE including apartment complexes and industrial warehouse spaces with as little as 25% down and rates currently ranging from 5.5-%-6.75% on 25 year amortizations.

Terms on these property types have fallen considerably in the pst 1-2 months where earlier in the summer interest rates would have been above 7%-8%. 

Often, local lenders will offer additional incentives if the business banking relationship is established. The improved ROI has helped several transactions move forward.

What do you think, is now a good time for CRE investment?