All Forum Posts by: Neal Collins

@Tierra Carter How has this worked out for you? Huge potential to do this with the generational land transfer taking place and utilizing creative finance.

@Daniel Gaviria Love this strategy and doing similar projects. Did you get it off the ground?

@Brian Falcon I’ve been focused on incorporating sustainable and regenerative designs and approaches into all of my real estate activities. 

There is a large groundswell of interest and I find that it’s much more comprehensive and encompassing than just the building science, appliances and tech.

From development to investing, right now there has never been more money and interest in the space with a huge opportunity.

We're selling several residential multifamily properties in Portland from our portfolio and for clients. We've strategically decided to sell when a unit has come up vacant so that potential buyers can walk through. I've had a couple interested buyers say that the value of the building is less since one of the units is vacant. 

Usually you can brush one off, several buyers suggest a trend. Am I missing something here?? Mind you these are 4 units and less.

Having vacant units in Portland is worth their weight in gold. You choose your tenants, not the ones your seller chose.

@Account Closed Echoing what Paul said here. Our goal is to transition beyond sustainability and are talking about regeneration by using the built environment as the catalyst. 

Should landlords, rehabbers, and developers care? Certainly. Code is changing. Public perception is changing. Technology is changing. Climate is changing.

This greater conversation needs to be had, but energy efficiency isn't best route to build awareness. At the end of the day it's about our collective health and wellness and how our homes and spaces can be such an enabler or detractor from this.

Most investors look at this conversation as an equation of how much does it cost, and what is the return. Providing healthy homes that are energy efficient, non-toxic, community-orientied, and ecologically integrated do more than just provide the opportunity for increased rents. They can decrease maintenance costs that the landlord incurs, as well as substantially cutting down on your turnover costs. On this point, I know "eco" apartment complexes that have 300 person waitlists. 

I'm trying to get a sense of the market right now since there are a lot of factors going on with COVID, low interest rates, underwriting changes, and local landlord-tenant law. Who is still active in the residential multifamily space in Portland, Oregon? Before I saw a growing interest for house-hacking these types of properties, but with COVID has that changed?

@Justin K. @Nick Finney

Your analysis seems to spell out that you are purchasing the property, putting no money into it, and not changing the rental performance of the property. 

The questions that come up are whether you can increase the performance. If you are buying at $360,000 and it's worth $360,000 what is the plan?

Nick, for what it's worth I'd take the maxims promoted by BP and realize they are market specific and as well as time specific. I deal may take longer to hit anticipated returns simply because your timelines can get pushed back due to tenancy or construction timelines.

Also, $100 per door is a very poor blanket metric. A $100 gross profit is very different if the unit cost $50,000 vs $500,000. Sometimes you've got to look at return on equity, and how much of your original capital you have in the deal.

@Jacob Derksen The Oregon specific advise I have is to not equate price with value. We work in larger dollar amounts than in other markets, which can look daunting from the outside, and it can be because we use debt leverage by necessity, but boots on the ground knowledge is also a critical leverage tool that can help you even in Sisters where you are.

There’s a lot of good areas around you from Sisters, Bend, Redmond, Prineville, even up to Madras. All have their different flavors, and challenges.

BP pushes a lot of people to become armchair analysts and advise them to run numbers on properties everyday. That is a good skill building exercise, but still caters to an unproductive approach and is used as a crutch for those with analysis paralysis.

Forming relationships and telling people what you want to do is how you build your lifelong foundation. You will figure out how you can collaborate or help others, and they will do the same for you.

This is a marathon not a sprint. I really love the house hack strategy because you’re going to need to live somewhere. You can always trade up down the road.

I’ve also spent a lot of time working overseas and have been in your shoes. Feel free to DM me so we can connect for a call.

I'd go ahead and pay for it as well. Seems like a minor expense that you wouldn't want the resident to fester over.

Great work. The Dalles is certainly a town with some changing building facades.