All Forum Posts by: Corey Westermann

Just a couple humble opinions from an agent here in Oregon... 

The supply of entry level housing is very low, keep in mind that trying to get an offer with any kind of a rehab financing accepted in this market is tough - so I'm not sure I'd be so quick to throw your REA under the bus just because your offers were rejected.  

With that said, you are correct that it's your REA's job to understand how your rehab financing works and to find a way to make the seller comfortable with it. Most sellers (and their agents) are uneasy with rehab financing for no other reason than they are unfamiliar.

More important than your agent's experience with any specific type of loan program - you really need to sit down with a lender who has sufficient experience writing this kind of loan. Ask how many rehab loans they've written this year when you call to set up an appointment - if their answer is less than 5, call someone else. Once you find an experienced lender you are comfortable with, get a pre-approval letter and get the loan program details to your REA. A good lender will be happy and available to work with your agent to explain the ins and outs of the loan program and differences in timelines, inspections, and appraisal that typically come with a rehab loan.

Prepare yourself and your patience for what could be a lengthy process. I have buyer clients right now that are pre-approved for 203b/203k loans and have made offers on 15 houses in the last 12 months. You might also consider private money, a seller carried note, or expanding your search area a bit out of Salem proper - those are a few things off the top of my head that might get you into your first home a little quicker.

Welcome @Vadim Stolyaroff

I grew up in Oregon City! I currently have a rental there and am developing/selling a couple lots with my dad. The city has come a long way in the last 20 years and I know lots of folks who think the Willamette Falls Legacy project could really turn the city into a legit tourist destination. 

I'm an investor friendly agent - so if you need help with a purchase, or even if you want to just meet for lunch - give me a holler.

Hi James,

We're in the middle of developing a couple lots in Oregon City. It's been a frustrating process, mostly due to the land use application, planning and permitting processes with the City.  It seems like the planning and engineering departments have a revolving door when it comes to employment there so there's been a major lack of continuity in the people we've been dealing with and the information we've received from them. They've recently adopted a new set of storm water requirements and between the "green streets" and mandatory frontage improvements they are requiring the design and construction costs have really spiraled. 

I obviously don't know the ins and outs of your project but be prepared for the city to wring money out of you any way they can, with requirements that even they don't fully understand. My advice would be to go into the planning department and set up a meeting with them. Make sure you have a real good handle on what they are going to require before you sink too much energy into the process.  

The good news is that build-able lots in the city are scarce so it should not be hard to sell the land at a premium. 

I'd be happy to chat and share some good local contacts for survey, engineering, etc.  Shoot me a message if you want.

Hi Tara, I was in your exact shoes last Fall, and I found a great brokerage with amazing (and free) education. Even better, there's a team of agents within it that focus primarily on investing. I'll send you a message with details, but just know that there are a lot of options for investor agents around Portland that aren't going to cost you another quarter of your commissions.

Hey Eric - 

When you say your 15 unit makes $2k/mo is that cash flow after expenses? Is that $24k/year in addition to the $55k/year you're making at work and landscaping?

I recently got my Oregon broker license as well. It's definitely not flipping a switch and instantly making a living as a full time Realtor. 

From an outsider's perspective I'd say that you should keep your 9-5 for a while longer while you get established as an agent. You'll have access to much easier financing while you still have a traditional job and it will also give you the time you need to find the brokerage that fits you best and has good in-house education. 

Welcome! I'm in your neck of the woods and love this part of the Portland area, once you get over the sticker shock I think there are some strategies that can work great in this area.

I have a short sale under contract closing at the end of December and I plan to fund it with hard money. I'll refinance into a 30 yr fixed by the end of February once the minor rehab is completed.

This is my first experience with hard money and I want to be sure I understand the loan seasoning requirements. I shouldn't have trouble refinancing the original purchase price with enough cash down correct? I'm just not allowed to use the ARV to get a new loan for a while? How long is that seasoning period typically? What is the likelihood of finding a portfolio lender that doesn't have these seasoning requirements?

@Jay Hinrichs

pm sent

@Jay Hinrichs @Lawrence Belland

Thanks guys. Is there a certain amount of time prior to the hearing that the sale/case be posted or advertised or something like that? Perhaps a time to allow for creditor review or soliciting over bids? The listing agent made it sound like there was some period of time that we'd be legally required to wait prior to judge approval. 

I ask only because the court timeline has the potential to greatly affect my financing method.

I've got an offer on a short sale in Portland that has been accepted by the owner (actually it's the bankruptcy trustee) and also approved by the lender. 

The listing agent said that the sale of the house now has to go back to the bankruptcy court for some kind of waiting period and court approval. But he was short on the details regarding this process and I'm hoping someone here might have some experience with this and help me with the following questions:

How long does it typically take for the sale of a home to be approved in Oregon bankruptcy court? Is it just the judge that has to approve the sale or creditors as well? What is the waiting period and what purpose does it serve?

Also, I'm a little confused as to why the bankruptcy court needs to approve a short sale. Doesn't the fact that the house is being sold for less than the lender is owed mean that there's no equity for other creditors to go after?

Please help if you can - thanks.