All Forum Posts by: Patty Tower

I would target high-interest-rate debt first, anything above ~8% or so. Once that is paid off, I say gradually pay off the rest but invest more into your business. It really comes down to what the better return on investment is. Just pay off whatever debt interest rates are below your rate of return on your business.

Thank you!

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Quote from @Lisa Rechsteiner:

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Quote from @Jonathan Greene:

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I always go in with offers contingent on inspection. Definitely not easy, and in Seattle, it's been competitive -I've lost out on the last two offers. I've also visited a site and deterred from offering because I won't do tear downs. Experienced investors are going in at 80% ARV minus repairs instead of 70%, but I have hope.

I've been networking and have met experienced contractors and have been receiving mentoring and coaching through experienced investors. I'm surprised at how much pessimism there is in this group. If I'm willing to invest in the right mentors, analyze deals, and be educated with investment, the risk is minimized.

This response is exactly what will make you lose your money on your next deal. This is not pessimism, it's realism. We only answer to help people not make the same mistakes we've made. Do you go to the meetups run by Leka Devatha? Those are the premier Seattle meetups with true experts in the Seattle market.

You popped into a forum, new to the site, asked a question, and then committed the biggest newbie mistake in the book - you backlashed against the sound advice because you know better. But you came here looking for help. That's what we are giving you.

I asked for insights and advice as a newer investor and what I got was "what are you thinking..." "you're a sitting duck," "Your chance of failing is..." and "naive," etc which comes across as very demeaning. None of that is encouraging whatsoever. This is not sound advice but poor criticism.

I followed Leka and have met her at a WAREI event. Here is an IG post where she paid $560K for a property in Greater seattle and said comps are "$840-$1M.

Leka Video Seattle Property

Here is another where she encourages investors to look at ADUs Leka ADU post

@Jonathan Green I'll bet you are trying to scare us newbies from making big mistakes, But you are not very kind about it. Ive seen many of your posts across the forums. How about advice without the judgement?

Judgements were made about me before asking any questions. Wholesaling can be done without any money up front by driving for dollars, facebook posts or looking at MLS postings. By reading some of the posts, I can now make an informed decision, but I do not need additional judgments. There are better ways to approach someone's post.

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Quote from @Brandon Becsi:

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Have you done any full cycles yet on flips? It's definitely challenging, but networking and seeking mentorship are key steps to success, and it sounds like you're on the right track. It's important to stay positive and focused, even in a competitive market like Seattle or naysayers.

If you'd like, I’d be happy to jump on a quick 10-minute call to discuss your current strategy and see if there are any additional insights or connections I can provide to help you succeed. I typically do B/C class rentals and flips so I may be in a different genre than you.

Yes, that would be great!

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Quote from @Dan H.:

Quote from @Patty Tower:

In Seattle, many investors are opting to find properties that have room for ADUs. Seattle has become more lenient on ADU regulations because of the housing shortage.
I was just reached out by a real estate agent on a cabin. Asking is $350,000 and the ARV is $700000. Profit can potentially reach up to $200K depending on amount of repairs needed.

In southern Ca adding a single ADU in single family zoned areas has a cost greater than the value added.

I have less knowledge about Seattle but my oldest friend did a basement conversion ADU in Seattle (I am at her birthday in Long Beach Washington at this moment). It cost significantly more to add than the value added. I wish she had consulted with me earlier, but she is happy to have it regardless if it was a good investment. I realize a sample of one is real small and that she did minimal research before proceeding but she is so far negative on this ADU conversion that even with better contacts and research it would still be negative.

Be careful thinking adding an ADU in single family zoned as a good value add. Building small units in small counts is near the most expensive development and there is no way around this limitation.

Good luck

Thank you. I've gotten a couple quotes and and it's around $350K to add an ADU for any investor (separate detached unit on same lot). However, this isn't something I'm ready to take on yet, but I know adding an ADU is a sell point as a wholesaler.

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Quote from @Jonathan Greene:

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I have over 100K in debt and will be focusing on wholesaling & flipping to pay it off. What would be the best strategy or suggestions to pay this off while investing into my wholesale & flipping business? What are some case scenarios? I need to invest in marketing with wholesaling while I know can also make a profit of about $50-$150K in a single flip. Marketing costs right now are roughly $1500 per month to make one wholesale deal of about $15K.

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For the most part I'm leaning away from Seattle because they do not favor landlords, but if you're ever in need of someone to cohost with further from the city let me know!

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Seattle, Washington

All Forum Posts by: Patty Tower

Patty Tower has started 1 posts and replied 9 times.

Post: Paying off Debt While Investing

Post: Paying off Debt While Investing

Post: Paying off Debt While Investing

Post: Paying off Debt While Investing

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Post: Paying off Debt While Investing

Post: Paying off Debt While Investing

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Post: New STR Investor - Seattle Tips?