All Forum Posts by: Jon Klaus

Sounds about right to me.  Engineer stamped?

Yeah, BP isn't close to the Portland MSA yet, but it is bigger than Vermont!

Mostly paid 10% on private money in that time frame.  

According to Wikipedia, BiggerPockets has more members (635k) than the population of Portland, OR (632k). 

https://en.m.wikipedia.org/wiki/List_of_United_Sta...

www.biggerpockets.com/stats

 BP is growing faster than any city in the US.   Congrats on the growth, BP Nation!  

2007 was the year that the market probably peaked in my area, DFW.   I refinanced my own home with cash out that year,  probably just in time, because there wasn't much cash out available for years after that.  Used the cash to buy a rental. 

In 2008 the real estate market hit the wall, especially mortgages.   It seemed like a good time to buy, so I started educating myself and shopping.    In August I bought an office building with a Chase loan.   In retrospect, I'm surprised I got that loan, it was key to my getting started seriously. 

 By the end of 2008 I was reading a lot on RE investing and I discovered BiggerPockets.  Probably spent a couple hundred hours on BP in 2009. 

By early 2009 the market has declined even further and I was determined to buy and hold. I didn't have much cash at that point, but I had a pretty good relationship with a private money lender Using loans from him, and from a couple of other individuals, I bought 16 HUD foreclosures over the following year.

 I would typically pay about 25K, and fix them for 10K, and rent them for $800 to $900.   Rents have steadily grown since then, though I've sold most of them off. I have four left at the moment and they rent for an average of $1150.   I have one under contract to sell for $95k.  I paid $32k for it in 2009.  

Many lessons, but I think the one that really stuck with me is be prepared for a downturn. Have dry powder to be prepared to buy when the blood is in the streets.   It's a hard discipline to build up cash when you can get a much better return actually invested.   Even so, pay close attention to the signs and be ready to change strategy quickly if necessary. 

What are you seeing on owner occupied commercial property mortgages?  Rates, terms, points, etc?

Sounds like the area doesn't support spec new construction.  Find an area with higher exit prices.  I'd only do this where exit values are over $200psf.  You might be able to build for less, but that still won't put you where you need to be.  

It's good to have you with us, Hugo.

If you are confident in the value and your spread, why don't you buy the survey?  It will build credibility in the seller's eyes and help you market it.  What do you have it under contract for?  What's it worth?