All Forum Posts by: Mathew Wray

@Natalie Z. @Pranitha Shandi

I’d make sure you have a reasonable grasp on what’s expected of you from a legal standpoint as well. Look for local LandLord advocacy groups-here in Portland we have Metro Multi Family and I’m sure there’s something similar in California. 

Not only do they have forms that are vetted by lawyers annually to keep up with changes to the law, they often have overviews and classes on the law changes. Oregon has layers of LL/tenant law including statewide rent control, city ordinances, changes to rental screening and security deposits, etc. Would be shocked if the same types of law aren’t being considered in California as well. 

Best of luck in your transition!

Mathew

Depending on what you’re looking for you may find some of the large brokerages a good fit...they’re certainly larger but with that comes established programs you sit in on and learn the business of real estate, not just filling out a contract. 

I’m with KW and think we have a great, thorough training and mentorship system, especially for new agents. I’ve heard good things about how PPG (I believe they used to be KW agents who split off and created their own brokerage) helps new agents as well. 

My suggestion is to not worry about splits and fees and desks and business cards and your website and all the other things people get wrapped up in. Instead, find a Principal Broker who will show you the models you can emulate to reliably find business and then take care of the business you find. As an agent your job is lead generation! 

Best of luck...happy to help if you have questions! 

Mathew

Hey @Lance Nelson,

Congrats on getting your license...it can a big step forward towards financial freedom! 

One thing you probably intrinsically know and understand is that there’s a trade-off for all things in life. I’m sure there are a wide variety of physical therapist business models out there (providing different levels of support)...real estate brokerages are no different! 

I’m sure you can find transaction fee only based brokers in town but I think you should ask yourself if you really want to do that? The online training doesn’t actually teach you how to be successful in real estate-it teaches you how to avoid getting in hot water with the regulators. So where are you going to learn the actual business? From building your database and different ways of expanding your client reach to tips on how to conduct a transaction to the physical paperwork-how are you going to learn it? Real estate has a MASSIVE turnover because it looks easy, but like most things, if you want to be successful it’ll take hard, focused work.

Why not consider (or maybe you have)  investing in yourself and shortening your learning curve while increasing your chances of success in the business by going with a brokerage that will train you in the nuts and bolts? I’m partial to KW but by no means are we the only option-just be careful you don’t end up getting exactly what you pay for with a no-fee brokerage: zero. 

You’re taking the right steps investigating your options and getting your license...let me know if you’d like to chat about lessons learned transitioning from one career into real estate!

Mathew

Time to find a new lender!

Or, more realistically, if you have a history with them and want to stay in relationship then go back and have another conversation with them...maybe there was a miscommunication or they misunderstood a key point while talking about your plan?

There are tons of good lenders in our area and while loyalty is important, so is getting the correct info! definitely can get a 3.5% down with O/O. 

Mathew

Welcome to BP Luis!

Love the plan you put together and more importantly love your backstory. Knowing where you came from and what you’re going towards is huge. 

You’ll see if you dig that there is a constant need for good PMs...and it’s a very challenging, intensive business...but doable. 

There’s some great Portland resources out here for you as you execute on your plan! 

Again, welcome! 

Mathew

@Todd Ashley

I own properties in NE Portland, Clackamas on the border of Happy Valley, in Tualatin, and used to own rentals in University Park, near the UofP.

@Todd Ashley

Great that you’ve gotten to meet the renters and do some due diligence! I’d be less worried about turnover than the ability to drive rental income higher. You’re more limited on who can afford a higher rent option by themselves vs. defraying that space/rent with multiple people in a larger unit. But you know, as I type that I wonder if I end up with just as much (or more) wear and tear on my two bedroom units with three people living in them so they can afford the rent. So maybe my long-term maintenance costs out weigh some of the higher rents I get. Just thinking out loud! 

I think you’re smart getting into the market and as an owner occupant, why not get as many units as possible to defray your cost of living! 

To answer the seismic threat question a bit more-you can always reach out to a couple companies around town and ask them the cost and concerns of retrofitting concrete block construction vs. stick-built vs. brick. Having that info up-front will be key to not being frustrated later. Looks like the city has backed-off their crusade against unreinforced masonry construction (for now) so hoping that helps remove pressure from other segments of housing as well (I had prospective tenants asking about earthquake retrofitting in a rental I own built in 2004). 

Congrats on your purchase! 

Mathew

@Mike Gammarino

If you can swing it without the down from your rental, then I’d leave the rental out of the purchase as well. But if that’s the only way you can make it happen, then there’s your answer. I used equity from a rental to buy my house...in hindsight I would’ve been better off leveraging that equity on other investments, but with hindsight it is always easy to beat yourself up!

Other thoughts:

Even if you don't do a cash-out refi, you could lower your DTI and monthly payment by just refinancing the principal on your home. You'll likely pay a little more in rates because it's not your primary residence, but it'll get you off the adjustable rate loan (which is only going to go up) and lock you in at historically low rates now. You'd want to look at what makes more sense based on your goals, pay off timelines, etc. but it's an option you should at least consider.

I’d 100% recommend doing both refi and purchase with the same lender-it’ll make communication and process flow so much easier! There are plenty of lenders that can write loans in multiple states. I strongly prefer mortgage brokers for a couple reasons: relationships, communication, access to multiple lending options vs. just bank lending vehicles, and while there are plenty of good bankers out there, I feel like the best brokers I know are just hungrier and more on your side (bankers work for/answer to the bank)...

Best of luck,

Mathew

I tend to agree with Steve...you'll want to run the question by your insurer just to get another viewpoint but I'd be more concerned with the fact that they're four 1-bedrooms than with the potential for an earthquake. Not saying there aren't great reasons to have 1-bedrooms as rentals-just would want to be extra-careful that you're vetting your potential rental pool, future rent increases, etc. 

Morning Nicholas, and congrats on getting your license! 

I'm sure you'll be able to find a non-traditional brokerage model out in Portland somewhere. My suggestion would be to call some of the independent brokerages out there and talk with them. I can't speak for anyone else, but I know KW doesn't allow wholesaling (and I'd be surprised to find that the other large, franchise brokerages do either...although it's at least worth a phone call in case I'm wrong). 

Best of luck and let us know what you find!

Mathew