All Forum Posts by: Mathew Wray

Micah, congrats on having options!

Normally I don't advocate selling since there's often a way to avoid losing the asset, but in your situation, I'd strongly consider it for a couple reasons. 

You're a flipper/rehabber, so having a significant amount of personal debt is going to eliminate safety nets if a future project goes south and you need to float it. Plus, you're in a situation where you can potentially make up the loss of an income generating property faster than others since you're experienced using OPM. 

The other reason I'd consider selling is timing. While you can certainly pay that debt down over the next couple of years, I'm guessing that focus will take other opportunities away from you. 

One reason to not sell is the makeup of the properties. How long have you had the four you'd be keeping? It sounds like there were issues in two of them...were those one-time issues or could they reoccur? I wouldn't sell the good one to pay off four risky properties. If that's the lay of the land, then unload the risk, take the education, and keep the winner, even if it leaves you in the hole. 

Nice to have a few scenarios for how to move forward!

Mathew

Adding in my .02 cents...

I found PenFed to be challenging to work with.

FirstTech came through for me and it was an amazing experience. They went to 75% which was good enough for my purposes, super easy to work with, quick process, and efficient. 

Hey Benson, 

Comgrata on getting your license! 

You may have already done this, but one aspect I'm not reading about is what you want to do after you graduate? I think that's a far more important question than what brokerage you hang your license with. Are you planning on pursuing a career in computer science or are you going to be a broker? 

There are always exceptions, and I truly hope you are one, so please don't take this personally: there are enough hurdles to success as a new agent as it is. Trying to be an advocate for your clients part-time on weekends and during the summer is going to be another big hurdle you're adding in. Even if you can balance schedules and timing for your clients, are you going to be able to be the best resource and guide for them as they sell or buy their largest assets?

As an alternative, maybe you work as a licensed assistant to an agent so you can help with showings, do some inspections, and help on the back end. You'll gain experience and exposure to the industry with less risk to your clients. You'll very likely make more than the average solo agent who is just starting (look up the stats at NAR), not a lot as an assistant, but more. Then, if you find you're more interested in Computer Science, you go that route or stick with RE if you've learned to love it and have had success.

The financial decisions you'll help guide and advise on aren't for amateurs and your clients deserve (and will thank you) for being able to put their needs and what's best for them first. 

Like everyone else, I'm happy to talk through the realities of the job!

Mathew

Mor ing William, definitely some good advice on here and things to think about. Here's a few more for you:

1. Don't underestimate the power/value of a low interest rate. Waiting will get you higher rates which will reduce your purchasing power for the same payment. Over the life of a loan that lower rate is far more important than a purchase price. For that reason alone, I'd get moving on the process. 

2. Momentum. Like Warren said, it felt like a stretch but the process of doing was invaluable to him. 

3. Inflation is real and will chip away at the value of your savings (really impressive to have done that while in college) and continue to drive up prices. Locking in a fixed purchase price now will save you money in the long run!

4. Make sure you check in to PDX rules on STR's as the city is pretty specific about them and how they operate here.

5. Start working on your mindset around what a deal is in the Portland market as an FHA buyer. No defeatism and that doesn't mean you should just run out and buy a property that doesn't fit your long term goals, and knowing what is happening on the ground can help you prepare.

Best of luck!

Mathee

Morning! Congrats on getting your rental up and running (or on the path to running)...

1. I'd get a property manager involved. Unless your full-time careers allow you to manage changing rules and requirements that are easy to run afoul of, do yourself a favor and get a PM to save you a mis-step that costs you time and money down the road. Of course you can do it yourself and there are resources in the area to help you steer a straight path, I'm just recommending you consider the alternative. (pay close attention to the advertising timing requirements)

2. Take that $2,500 and put on your renter hat...go look at what else is available on craigslist, facebook, zillow, hotpads, etc. How do you stack up against what else is in that range? 

3. Weigh the value of time. From your post it sounds like you need a good tenant in there more than you need to maximize every dollar. Doesn't mean that you don't want to make money and also sounds like an extra $50 trying to hit it on the head exactly could add extra stress and strain when you're trying to purchase the next one and have it contingent on getting a signed lease. You can raise the rent (for now) in the future, the key to me would be getting a good tenant so you can complete the replacement purchase. Keep your eye on the prize of the next property!

Best of luck,

Mathew

If you want an independent one for your own benefit, then have at it. But, your lender is going to use an AMC and just get it in the queue and who do you think is going to get priority...the 1 time job or the AMC that has hundreds of appraisals a month? Price will depend on size but $1,500 seems steep to me and while appraisal turn times are extending right now, 2 months is still excessive.

Trust your lender to do their work for you!

Step 1 is exactly what Paul said: get recommendations from family, friends, and those in the industry and start calling. 

I've found that lots of borrowers focus so narrowly on rates and fees and discount expertise. Do you want a lender who can fill in boxes on a spreadsheet or who has the experience and expertise to avoid problems, surmount them if they occur, and have options to discuss with you? 

In your conversations with those in the industry, you'll want to get a feel for their reputation among others as well. For instance, there are a few well known institutional lenders here in town who have horrible reputations centered around not getting loans closed, having poor appraisals or unreasonable underwriter guidelines...it doesn't matter how good a rate or fee is if nobody in town wants to work with them! Same thing on the other side, there are lenders with reputations for closing loans and funding...if you see a pre-approval from them you know you're working with a pro. 

You're on the right path in getting folks behind you and on your side as advisors.

I'll shoot over a few recommendations to talk to in a private message

Mathew

Morning Prem, 

I'm so sorry to hear about your mother's situation! 

Tim Murphy is who we use on a regular basis...he'll be able to help walk your mother through the process of settling back in to her home. BP doesn't allow me to post contact details so I'll follow up in a private message.

Best of luck,

Mathew

Morning!

I'd echo what Robert said...once you've got the goal in mind it'll be easier to decipher your approach for getting to that goal. My suggestion is after you've set a goal, do some skills assessments on yourself. Are you handy? Do you know a lot of people? Can you network well? Do you have deep family pockets? Are you good on the phone? Answering some of those questions will help refine the pathway forward. 

Mathew

We just had a listing with white vinyl windows. The sellers repainted the trim white but they went rogue and chose a yellow-tinted white that made it look a little off. But, by changing the porch light to an LED vs. an incandescent it helped minimize the odd look. Know that's not super helpful, but may be worth trying before you try to have the window frames painted. It can be done, but it is more complicated. 

I know you see it every time you stare at the house, but would anyone else even notice? Maybe you could ask a couple friends to do a drive by and give you feedback. It may turn out that nobody else bats an eye!

Mathew