All Forum Posts by: Ben Winchester

I don't have much input on the market because I simply don't know it, but my aunt lives there and loves the area. I know the ocean can cause some serious issues with houses which could be large expense down the road. Oregon is an amazing state (for the most part) and I hope you guys enjoy it here :)

You are definitely going down the right path by buying on the coast since you are there half the time anyway, but don't beat yourself up for just waiting a bit. I'm no expert but I'll give my thoughts. I pretty much agree fully with Bill's response. The 2% deals you can find are deals that should be jumped on immediately, at least in the portland and coastal markets of Oregon. I live out in Troutdale and have noticed that the only 2% deals I can come close too are so rural, it's not really worth it to me. Once you get into the portland zip code, 1% deals are even extremely hard to find. But, I know you are talking coast, this is just to say that 2% deals really are specific to markets. Some markets even have 3% deals which is just insane to me. I think people buy 1% deals all the time, just be thorough with your analysis to make sure you cash flow. I don't know the coast market but I do know there are lots of people who want vacation rentals out there. I think Bill is right again that finding a tenant who is willing to have strangers come and go will be difficult, even if you recruit them to "work" for you and help out. I also think that the majority of people looking for vacation rentals on the Oregon coast are people actually going on vacation, and not the inner city airbnb type. What I mean is that I think most people going to the coast are wanting to stay like a week or something vs a night or two like if there was an airbnb in portland. I could be way wrong on this but the Oregon coast is kind of a destination and not really a pass through place. I think you would definitely get day stayers, but I would imagine most people wanting more than that. And I have no research backing that haha. Just my opinion based off of when I've gone to the coast. But, I guess people drive the scenic coastal roads from Washington to California and could want a day stay on an airbnb. The podcast number 229 is specifically on vacation rentals by the way. And again, like Bill, I don't have much input on mobile homes. I don't know anything about them besides that they are cheaper than regular houses. I hope my ramblings make some sense and at least get you thinking about things you may not have considered. Best of luck.

Darin Groom yea I think you guys agreed right at the sweet spot for sure. The more I was thinking about it, I feel like any less just isn't worth the risk for the money partner. But if you work with the same people for a long time and build the trust, I guess you could start to negotiate a lower return. I hate just saying "on the podcast" but I can never remember exactly which ones I'm talking about haha. But on the podcast, lots of people always say they like to pay everyone as much as they can in order to keep them coming back and make excellent relationships. Make it a win for everyone involved. But anyway, good luck with your REI :)

I wish I could recall a single podcast to direct you to, but I can't. There are lots of podcasts that talk about specific people and what they have in order. I think I remember one seasoned flipper saying they won't pay more than 10% for private money, only because they know they can get it for 10% elsewhere. I've heard other podcasts where they start out higher at the 12% because they really needed the money then after time settle in to the 10% ish percent. I think at the very least, I would make sure I'm getting a better deal than a hard money loan. And then after that it really just depends on what you and your private money partner are willing to accept. I've heard Brandon Turner say a few times on the podcast that 10% was what he tried to shoot for. Not too low for the private investor but not too high for him. Hope this helps

This post has gotten quite the response, great question to pose. It's also really interesting all the different types of responses you are getting. I'm going to preface my response with, what I'm about to say is just my opinion and my experiences and every other response on here is the same, someone else's opinion. The fact you are 21 and questioning this is excellent and you should take all the responses into consideration, but remember, it's your life and you seem very capable of making a sound decision. One of my biggest regrets is going to college, just to go to college. And what I mean by that is I went to college out of high school because neither of my parents did, and that's what I was told to do. High school was a breeze for me easily achieving a 3.75 GPA with little effort and college was similar, or at least that's how I approached it. Do as little work as I can just so I can get done and get that piece of paper. I graduated from Eastern Oregon University with a business degree and got a good paying job right after, but not in business. I've only been out of college for 4 years and can't remember a single skill I learned. Sure I remember general business concepts, but actual business skills?? Not a single one. The point of all this is to say, if I could do it all over again, I wouldn't go to college, just to go to college. If I could go back, I would specifically learn a business related skill such as finance, or small business, or entrepreneurship, or start up, or a number of things. I would dive deep into one of those and then practice it daily to keep that skill fresh. And that's just what I would do if I chose to go back to school. I think you can learn all that in the world with the right mindset and skip the debt from college. I hate to rain on other people's parades but going to school for the "networking" or the "experience" or to "have fun" is just a giant waste of time. You can network, get experiences, and have fun for so much less than $50k-$100k. I hope all my rambling ended up making some sense to you and I wish you the best of luck in your future!

I like Dani Z. 'S idea about trying to get a lower price due to the extended close. I think if you end up waiting until after summer you will see less activity. If you were in Portland that would be a completely different story, but Scapoose is far enough away I think there will be a slow. I live in troutdale and have been searching for my primary residence and as soon as the rain started and it got colder, it was drastically different. It went from 3-5 houses hitting the market everyday in the summer to 3-5 per week when the rain started. We also Had ours listed at that time and went from 3-5 showings per week down to 5 calls a month and a showing if we were lucky. We pulled our listing and are re-listing soon. Now most sellers that I saw didn't actually drop their prices, the properties just sat and sat and sat, until I didn't notice them anymore. People always say there will always be people looking to move, but the majority really cut back in the winter rainy months. If you end up listing at that time, it's very likely you'll need to drop your price to get it sold. Just my thoughts,

I'm going to have to agree with Say Teoh on this one, but it really comes down to personal preference of living. If you're idea of dream house is having another person live there in a separate unit, by all means do it! Arlington Heights in an amazing neighborhood with incredible views and very low crime. I probably wouldn't mind a high quality renter in that neighborhood. Something I wanted to throw out to you was to consider a duplex or even a 4 plex in the Portland area. I've seen some brand new construction duplexes go up for the 1.5 million range and they look like luxury builds to me. They are not in the Arlington heights neighborhood but still a good part of SE portland. I would bet that you would be able to cash flow a little better with a large duplex vs. a smaller basement unit, but I haven't ran the numbers, only a thought. There is a lot of good tax advice on this thread though and good luck with your purchase/move.

@Frandy Blain, Thanks for the response. I think I'm with you on that it's not worth the gamble and needing the money immediately could be tough.

@Charlotte Edwards, yea, that whopping 1 percent is what he is trying to avoid haha... but I think you are right in keeping it in savings account or money market.

 @Michael Seeker, Thanks for responding! I think you make a very valid point that I will pass along. It's not worth the risk of having the market be slightly down when needing to pull it out, and I didn't even think about the costs associated with pulling the money out, that would pretty much eat up any short term profits and would just add to the loss if the stocks were down.

I appreciate all the responses

Hey BP!

My cousin and I are slowly working into a partnership. He recently refinanced one of his rentals and doesn't know what to do with his money while we find a deal. He doesn't want to let it just sit in the bank and not work for him, but he/I am not sure what else the money can do while we look for the next deal. He wants to put it in real estate stocks since you can liquidate pretty fast, but I figured I would reach out on here and see what others do.

Do people just let it sit in the bank and just try to find deals faster? Do people put it in the stock market? any suggestions would be awesome.

If I'm understanding your question right..Once the first purchaser buys the foreclosed property, it's no longer a foreclosure. A foreclosure is the action of taking possession of a mortgaged property when the borrower doesn't pay. Once the foreclosed property is purchased, there is a new owner and borrower (the new owner could have purchased all cash as well, meaning there is no mortgage). Depending on how a foreclosed property is sold by the bank or by the person who was loaning the money, a new buyer could purchase the foreclosed property however they want (cash, loan, any other agreed upon method) I primary residence was a foreclosure. A bank loaned the money to the previous owners and the owners stopped paying, the bank took possession of the property and sold it at retail to me. I got traditional financing with 5% down. Once everything closed, I could technically sell the property the next day and it's not a foreclosure. My loan officer wouldn't really be happy because I did that so quickly, but that's a different story. As far as I'm aware, there are no laws on how quickly you can buy and re-sell a property. One thing to also know is that a lot of investors loan out their money to other investors. Depending on how the note is written, there usually will be leverage against the property in question, sometimes a different property that has value. But the point is, the investor who decided to loan money to someone could potentially foreclose on that leveraged property and become the owner. I guess I'm trying to say that not all foreclosures will be done by "banks" but instead they will be done by the person or entity loaning the money.