All Forum Posts by: John Barrett

@Salvador Diaz look up WAREI on Facebook as it's a pretty active group.  There are also a number of landlord groups for Snohomish, King and Peirce counties.  I haven't seen much on Meetup for a bit but there are a number of local meetups pretty regularly.  The real determining factor is what area of investing is interesting to you and matches with your skills and talents.

John

@Grayson Chao look up WAREI on Facebook as that is a big active group of local investors and a number of meetups get advertised there.  You can still find some events on RHAWA website and meetup.com but it's a lot smaller number.

As for getting started, remember it's possible to be successful with many different strategies. I would just ask lots of questions and determine your advantages (time, money, knowledge, etc.) before deciding on an investment strategy.  

John

@Sammy Sadovia welcome, this is a great place to learn.  I would suggest looking for some local meetups so that you can get specific information about what is working for investors in the Spokane market.  Spokane has been a hot market for investing for awhile and local meetups and Facebook groups will be able to provide you the best information about what's working in your local market as well as any specific market risks / challenges.

John

@Sham Haile you should look up the Tenants Union & RHAWA websites to review the notices and requirements for how notices need to be provided to tenants when a seller intends to sell a property.  These requirements will apply even if you do not have a formal written lease agreement.  Not following the requirements (within Seattle city limits will likely have additional rules and regulations) opens the seller up to liability.

Additionally, the seller always has the option of offering "cash for keys" arrangement but be sure that no funds change hands until after the property is vacated and locks are changed.

John

@Roger Garner the strategy will really depend on what level of involvement you want in the project. If you are looking for a GC who will take care of all aspects of the project, you are going to pay a premium. Using a GC you will have less headaches as you'll have one point of contact and they will coordinate schedules between the various trades.  The other extreme is you could be your own GC and price out the various trades you need and coordinate the schedules. While operating as your own GC this will save you money, coordinating can be a bit challenging.

Once you have decided the level of involvement you want in the project, just get bids from multiple vendors based on the same statement of work and compare the offers.  Also be sure to check reviews and L&I to make sure they are licensed and bonded for the work you are having quoted.

John

@Jeremiah Hipp I would start by looking on Facebook and Meetup to see if there are any real estate groups or in person meetups close to your location.  I think you would likely need to go to Tacoma or Gig Harbor to find the most options.  I think you will have the best time connecting with people in person.

In the meantime you can start by looking at all the properties that are on the market in your area to get a sense of what's available and what prices they are closing at vs what they are listed at. 

John

@Ian Stuart Thank you for the breakdown, this is helpful information to have.  The thing that I don't see getting talked about much is the on going reporting requirements for property financials and borrower financials.  For Fannie Mae in my experience, you need to understand and plan for the quarterly and yearly reporting requirements along with the loan servicing inspection requirements.  None of these are deal breakers but do take time and effort to ensure compliance.

In your experience, is there any difference between Fannie and Freddie loans with regards to the ongoing reporting requirements for the borrower?  As compared with local lenders credit unions the reporting requirements are vastly more for agency loans.

John

@Abhinav Tandon I would start by looking up the WAREI Facebook group as it an active forum for things going on in the Seattle area.  Additionally, I would look on Meetup.com as there are a number for meetups in the Seattle area.  Just review the topics and you can find ones that will match up with areas of investing you are interested in.  Many are either low or no cost to attend.  Other than that, just keep networking here with other investors as that will help you grow your knowledge and narrow down areas of interest for investing.

John

@Sabrina Shaulis Welcome back.  There are a lot of people here who are willing to assist you on your journey. Network and ask questions and you will be making progress on your real estate journey in no time. :)

John

@Roger Garner there are many factors that go into the decision of whether or not to keep your property as a rental.  For example: your current interest rate, rental rate, expectation for appreciation, tax benefits, leverage and inflation protection.  While all of those are necessary to think about, none of these matter more than figuring out what goal you are trying to achieve.

From your post, it appears that this is your former primary residence.  There are tax advantages for selling your primary where you can claim capital gains tax free.  That alone could be worth between $250-$500K.

I personally like holding properties, but you may not want the hassle.  Decide on what you are trying to achieve and then determine if holding the house makes sense.  There are solutions to the challenge of managing your property.  You just have to figure out if that's what your goal really is.

John