All Forum Posts by: Mike Nuss

@Jay Hinrichs I always appreciate your support. Unfortunately, I have little hope for tomorrow. Lucky Lab cancelled us last time so we had no choice, may happen again because it's in the hills. I stayed on the eastside all day so I'm just assuming Multnomah Village has some significant snow and soon ice. 

@erik hansen, @Jay Hinrichs knows what he's talking about. Getting experience in exchange for some profit in your first couple deals is about as smart as it comes. I see so many people try to squeeze every ounce of profit off of a projected deal that they don't look ahead and think about what it actually takes to get to the finish line. Experienced investors know how to keep projects profitable, which is the ultimate goal in a flip. 

@Tyson Cross exactly, which isn't a bad thing, it's just a by product of supply coming on line. You just wouldn't think that by looking at typical information sources. 

Good to great product in good to great locations will still do well. You don't have to look any further than the east side's latest record breaker. I haven't looked too closely yet, but it seems a small % of the apartment builders in town are actually keeping them. The regional, national and institutional $ is just too good to pass up. 

@Jay Hinrichs we finally bucked up and subscribed to costar. Their apartment underwriting report for the CBD is the exact opposite of what you would think from reading the news. Occupancy rates around double digits, concessions, lowering net absorption, etc.. 

I was able to spend some time with a local investment banker on my trip to Rwanda. He recently funded a superblock deal in town so he's well versed in the CBD. He said 4 years ago there were a couple thousand units in the works. This last funding round there were more than 20,000. The wave of supply is on it's way for sure and the recent pre IZ application rush just forces the issue even more. Architects are making out like bandits right now. 

@Preston Roth now that's my type of project. Most local developers would simply demo and build apartments, but that's boring and as you mentioned a waste of great craftsman ship.

You can do any of the options you mentioned above. However, none of them tap into the expandability potential you have, without demo. Sounds like we think alike.....how do we expand, without demo. One possible idea, is to see if you're on the historic inventory resource list. If so, there are historic incentives that could help make a large scale remodel/repositioning of the asset, without demolishing the character and achieving all your goals in one project. Another thought, is how much site space do you have left. CS allows a lot of options, without set backs (assuming you're not adjacent to an r zone), which can allow for some cool projects. 

@Jay Hinrichs touche. Well said!!

@Jay Hinrichs Oregon has some amazing tax deferral and incentive programs. Senior deferral being one of them. Makes no sense why people complain about getting "taxed out of their property". 

Hi @Tyler Cope Oregon isn't like Cali (as I understand it) when it comes to assessments. Sales and transfers of title do not trigger reassessment. Land use and building permit procedures are what trigger reassessments here, so you don't have to worry about that. 

The only way to know for sure if adding a joint tenancy owner would violate a due on sale clause is to see the lending documents first hand. If it's a conventional bank, it's a high probability that is a violation. However, if your plan were to refi that wouldn't matter anyway. I"m no mortgage broker so no help for you there, but it's definitely something you could look into. 

There are multiple ways to potentially accomplish what you would like to do here. Thinking about tax implications is very smart as it's easy to accidentally create a tax consequence if not done correctly. Brainstorming with your CPA helps a ton with scenarios look this. If you need a local CPA, I'm happy to refer you to an excellent one locally. 

As for creative ideas, there really isn't enough info to go off of. There's equity, so it can be accomplished, it's just a matter of what does that look like. 

You may want to look into a life estate and see if that applies to your situation. 

Good luck. 

@Joseph Young what's the zoning of the property? If it's in city limits and has dense enough zoning, land development might be a consideration for valuation and exit strategy. Sounds like a pretty unique opportunity as moho parks do not turn over frequently in the Portland metro area. 

@Mike Biewer by "hold them to the lease" I mean you can enforce the penalties that the lease clearly states.  Howver, there is nothing wrong with letting them know what you can do, but let them know what you're willing to do to make life easier for everyone.