All Forum Posts by: Justin Green

In our personal lives we are debt free and it is an amazing feeling. In our real estate business we do have debt. This debt is smart debt. Someone else is making the payments and we are benefiting from debt pay down, tax savings, and market appreciation. I dont feel comfortable highly leveraged and strongly believe in a large emergency fund to carry everything yourself for 6 months if needed. It is all based on your comfort level. The greater the risk the greater potential reward or......

@Aaron Hall  Its a long process. I am currently closing another homestyle deal and can tell you from a brokers standpoint use 1 contractor not multiple and give 60 days for closing vs 30-45. Appraisers in our area are backed up weeks due to rate drops early in the year. 

Greater Portland metro for SFR's start at 200K on market $1400+ rents depending on location and features ~1.25-1.50 sq ft. Distressed and out in the burbs can purchase 150-180K especially off market rents don't drop as much, again very dependent on the size, location, ect... 1400-1600 for SFR is fairly average Portland Metro rents. Any cash flow right away is a good thing around here.

 Jeff are you renting for $1850 a month downtown? How big? I am working on a condo rental for some out of state clients. Hows your turnover? 185K makes me think 5-600 sq ft if downtown.

@Keith K.  I get asked about lease options all the time. It is a good way to find a renter as they usually never execute. Seller finance only gets the sellers a small amount of money if they are buying another property likely they need the funds. It depends on how much they need if you offered a seller carry with enough cash flow for you. It all depends on what you get it for. BTW not all Realtors concentrate on super clean turn key ready stuff I specialize in the ugly ones and low stress for the sellers. Rural may or may not make a big difference. Certainly less of a pool to pick potential renters. Our area is moving in a "close in" direction. Again all depends on your numbers and what works for you. Sometimes the deals are right in front of your face and nothing good is easy

@Bill Gulley  Thank you for that thoughtful response. This is opening my eyes over the last few years to this new world, so far open my eyelids are pasted to the back of my head.

Solving a problem is the key to creativity. I come from a world of fixing things with whatever you have on hand.

I am taking a long look at all my assets that can delay the need for immediate funds.

@Chad Carson  That is a great idea. I take it you are testing the waters on a property with this method. Getting tenants in and rented. Meanwhile holding exclusive option to purchase with fixed costs to your credit partner. I will explore this more on some easier properties. It gives you control without using your funds. I follow the logic.

My option strike price increased yearly at a 3% rate to give my credit partner a capital gain. 

Are you setting option price from the beginning and increasing it every year? depending on amounts I would imagine your option being 2-5% then 3% on top of option price.

example $10,000 option raises by 3% every year if not exercised? 10,300 after year 1?

@Nathan Paisley I do have holding cost with private money so yes that is out of pocket unless I can defer points and interest till the take out loan closes. I am a broker so my commission kicks in for the majority of "skin in the game". Some private lenders will go 90% of purchase price or more depending on the person. Closing cost for private money is paid by me or deferred.

An investor using homestyle renovation needs 25% down or 75% LTV if you hold title.

@Ross Johnson I live here and am buying. I am very active in the Portland market and know it. I don't believe we are at a peak yet. First off you need to determine if you are truly seeking a Duplex investment or a SFR with potential such as adding an ADU essentially turning it into a duplex. Also what part of town are you looking? If you are looking "close in N/NE/SE" that stuff moves very fast and many times before it ever hits MLS. SNL status is common "sold not listed" Deals on stuff have to come from a strong buyer. Cash is king. Duplex and investment stuff moves slower and consistent compared to the SFR stuff. I have not slowed down at all going into winter FYI I am a broker also. If you can do cash and jump on something day of or better yet before going public that's the amazing deals you hear of, OR picking something ugly up after its been listed too high for 4-5 months. Everyone wants a deal not just an investor. Area and price range make a huge difference. Bottom line I'm buying before rates go up as well as appreciation.

Try Gruntworks. I have used them for small stuff