All Forum Posts by: James C Norman Jr

About a year ago I made a series of posts about my plans to purchase a multi family in Las Vegas. Went through the process of obtaining my RN in License for Nevada, but was never able to secure employment, so I never made the move. It was quite odd, because I’ve never have had an issue getting a nursing job. Needless to say, I stayed in Washington and ended up purchasing a fourplex in the South Park neighborhood of Seattle last year. It’s been a pleasantly smooth experience, and now looking toward future investments. Anyone have any experience with tax lien auctions? Would prefer property in King, Snohomish, Skagit, or Whatcom county. Since it would obviously be a cash payment, I’m thinking on single family dwellings would be in my budget. Thoughts?

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@Terry Lao I definitely get it. I am asking specifically about the actual process involved. Where are you generating lists? After you found a potentially seller (likely out of state owner tired of the headache and low return) who do you proceed with the sale/purchase? What is your financer source?

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@Brent Crosby what insight do you have into that?

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Originally posted by @Michael Justice:

@James C Norman Jr If you choose wisely you can make a fortune during a recession

That's a big if, Michael. Trying to soak up the game here, so my next move is the best move!

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Originally posted by @Brent Crosby:

@James C Norman Jr here’s your #1 concern. CASHFLOW!!! If you can buy in a good area with consistent demand and you cash flow plenty with a fixed IR on your mortgage you’ll be fine!

Also keep in mind that with all this crazy borrowing governments and corporations have been doing I’d guess inflation is in our future. It kind of has to be at some point otherwise when rates rise people will be in a world of hurt. When you own real estate inflation is wonderful! Paying back loans with cheaper dollars is tough to beat.

The problem is, finding cashflow without the migraine. Vegas area quadplexes are typically D-class properties. The few that are C-class are HOA restricted which cuts into profit margins. I plan to relocate to Vegas and prefer to have my properties within commuting distance, plus I will owner-occupy, initially.

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Originally posted by @Andrei Zamfir:

@James C Norman Jr

Phoenix and Vegas were the epicenter of the last downturn. The problems that caused the GFC have not been resolved. They are even bigger today.

Those who say we cannot have another GFC or worst are deceiving themselves and others.

Rents have dropped in the GFC. Not in all areas but in many of them. During a crisis, people get creative, they will live with relatives or friends and rent out their homes. This creates a ton of supply on the market which in turn causes rents to drop.

Nobody knows exactly how this will play out. As long as you use low leverage and cash flow net with a built in cushion to survive a drop in rent of up to 50%, the chance of survival (aka keeping the rentals) is very high.

Wish you all the best. Real estate is great and the best way to build wealth, but only if you can keep it long terms.

Great insight! Thanks Andrei!

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Originally posted by @Bart H.:

Originally posted by @James C Norman Jr:

Originally posted by @Account Closed:

Multi unit properties are recession proof and thrive in all markets.

That seems to be the general sentiment, Jack. Thanks for your, perspective!

I think one has to consider refinancing risk. I think you are in good shape in a downturn with most modestly leveraged properties. The problem is if you have to refinance in the middle of a recession. what do you do? I would not want to be sitting on loans that had to be refinanced in the next 3-5 years.

Who knows if banks will be lending on multi family properties that are under water in a recession? and if they do what if the rates go way up? will those multi family deals still do ok? (honestly I think you can rinse and repeat for really any asset class)

I Think having reserves, long term financing, and cash flow is the best way to make it thru if not even prosper in the next recession.

Good points, Bart!

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All Forum Posts by: James C Norman Jr

James C Norman Jr has started 2 posts and replied 70 times.

Post: International House Hacking

Post: Multi family change of plans Washington State

Post: Multi family change of plans Washington State

Post: Multi family change of plans Washington State

Post: Fourplex investing with an impending recession?

Post: Fourplex investing with an impending recession?

Post: Fourplex investing with an impending recession?

Post: Fourplex investing with an impending recession?

Post: Fourplex investing with an impending recession?

Post: Fourplex investing with an impending recession?