All Forum Posts by: Melissa Hartvigsen

Quote from @Account Closed:

Quote from @Melissa Hartvigsen:

Hello BP Community!

One of my clients is interested in getting into buying houses at foreclosure auctions, and then rehabbing them for re-sale. Are there any local PDX investors in this area willing to share advice or be a mentor?

Thank you in advance!
Melissa

Ask your investor if they are willing to buy a house using cash, with the inside of the house sight unseen, from someone who stopped making their payments, who also stopped maintaining the property and you can't do a walkthrough or inspection before purchashing. Then have to evict them. By the way, some people destroy a house just before the sale. I've seen concrete poured down sinks and toilets and tub, wires stipped out of the walls, holes in walls from sledge hammers, drugs, feces, **** roaches, rats, and a raccoon or two. It's an interesting way to buy a job.

Hi Mike,
Thanks for your reply. I already had that conversation with my client and they are willing to those risks. Looking for advice or mentorship from folks that do it regularly.

Quote from @Eliott Elias:

Your clients are going to have to close the deal in cash. Have them go to a few and spectate before purchasing. Most can be bought before auction. 

 Thanks for the tip!

Quote from @Lizbeth Vargas:

Thank you so much! I really appreciate it. I’ll definitely watch the video and take any advise I can take(:

You are most welcome!

Hi Erik,

Answering your question 2. Adair Homes builds in Marion county, and they have two duplex plans to choose from. Their site is up front about build costs. Using them, you have to do your own site prep. They have an office in Aurora, just north of Salem where you can visit a model house. They will give you realistic costs for the whole project, so even if you use a different builder this is a good starting point to run some numbers. Since they have cookie cutter plans, they are cheaper that a custom builder.

https://www.adairhomes.com/custom-homes/or/north-willamette-valley/marion-county/salem/plans/multi-gen

Hi,

Many others already commented on why you shouldn't partner.

Here are some other options to consider:

1. If there is not a lot of competition from other buyers, have your realtor negotiate for the seller to pay your closings costs.

2. Use a down payment assistance or closing cost program. There is no such thing as FREE MONEY, and there is usually a fee wrapped into the loan for these. In Oregon we have a couple of great options FLEX 5% (a 2nd @ 0% loan that may or may not be forgivable depending on your income), and the Oregon Bond Cash Advantage 3% . Nationally there is one called Empowered, it is a grant up to 3.5% which does not need to be paid back. * Not all loan officers are created equal, and may do not offer these
programs. If you would like recommendations for someone who can walk you through you options, send me a DM.

3. Look at 0% down loan options or combining a 2nd loan with your first.

4. Gift money from family. Yes, this is allowed for your loan as long as the person giving the money will sign a letter for your lender confirming they didn't loan you the money.

Good luck!
Melissa

Hello BP Community!

One of my clients is interested in getting into buying houses at foreclosure auctions, and then rehabbing them for re-sale. Are there any local PDX investors in this area willing to share advice or be a mentor?

Thank you in advance!
Melissa

Quote from @Corey Hanson:

I'm curious if anyone in Oregon is offering medium term rentals and if they have a lease agreement for this type of rental in Oregon, or does anyone have an attorney they would recommend to draft this type of agreement.  

Hi Corey,

I rent to travel nurses in the Portland metro area, and have been doing so for over 3 years. Most stay anywhere from 3-6 months, but once in a while I get a 30 to 45 day stay. I use a standard rental agreement. How to show the rent on the monthly amount using a 45 days I suggest:
1. In the monthly portion list the monthly rent you are collecting.
2. In the special provisions section, you can write: "Rent for the full 45 day terms is $x".
Using $2,000 a month, this would read "Rent for the full 45 day term is $3,000".

Be cautious about the advice to use the Bigger Pockets Lease package. It is not compliant or up to date with all of our local laws. I buy mine from Multifamily NW (they have digital signing built in, and after the initial fee the annual subscription for unlimited use of the forms is under $50 for 5 or fewer units).

You might also consider getting your lease from the local landlord association. In central Oregon you may have different rules than I am used to. https://www.centraloregonrentalowners.org/

All Oregon rental agreements are required by law to have the provision that they convert month-to-month automatically at the end of the term. The way I deal with this when someone is booking is to include a "notice to vacate" along with their lease so you don't lose your right to evict in case they holdover possession.

You can send me a DM if you have more follow up questions.
Best wishes,
Melissa

Section 8 is a form of public housing assistance, and the assistance is granted to the individual (tenant) based on need, and then the tenant can select any property on the rental market. The property (unit the tenant will occupy) must meet basic habitability standards and go through an inspection at the inception of the tenancy as well as annually. 

I don't see how there would be a limit put on the units that can receive Section 8 assistance unless it is something your loan program requires?

Here is a link for you to get a general overview:

https://www.hud.gov/topics/housing_choice_voucher_program_section_8

I also suggest contacting your local housing authority (they are the ones who administer the Section 8 funding in your area).

Cheers,
Melissa

Hello Lizabeth,

Congrats on passing your licensing exam!  I don't work in your state, but when I got licensed, I found this video helpful to generate questions to interview brokers:

https://youtu.be/1VNW5PBlML0

I have been licensed for 6 years now, and often get calls from new agents asking about how to get into the business.  I am always happy to give them 30 min to an hour of my time to answer their questions. I am sure you will find the same in your area. : )

Best wishes to you!

Melissa

Quote from @Tommy Nguyen:

Hi Melissa,

I appreciate your response. At the time of my offer, the property had only one offer. Also, I believe the appraisal value will be lower compared to the listing price. If that's the case, could I negotiate with the seller to have the purchase price and appraisal value match? Thank you once again!

Hi Tommy,

The lender who is doing your loan will only give you the loan up to the amount of the appraisal value. You should 100% re-negotiate if the value to what it appraised for.  

The other option if for you to bring extra money to closing to make up the difference. Based on the factors you mentioned such as the property needs cosmetic rehab and it was on the market for a month, I would not advise this. If you were in the scenario that Joseph Cornwell mentioned (1 day on the market and 10 offers in addition to yours) then I would recommend considering this as long as your investment projections would still pencil out with the added out of pocket money.

-Melissa