All Forum Posts by: Mike Nuss

Jeff, that is a problem with the current migration to Portland. Most of my inquiries have had jobs already, some haven't, but more than half had. 80ish% of the tenant inquiries I receive are out of state. I would hate to be a tenant looking in Portland right now.

Check their account, sign a limited lease term (3-6 mos) and make them pay it upfront. Extra motivation never hurts anyone. I didn't have to go that route on the units I recently rented, but would have for the right tenant (assets, good credit, home sale history, etc..). 

Hi Todd

Welcome to the investment Arena!! Come check out the RareBird Investor Network tonight at Lucky Lab Pub in Multnomah Village. You'll meet investors of various stages and can start your networking there. Come chat with me or Tyler, we're working on a custom CRM for our marketing model right now. Tyler would be the best to discuss that with. 

Happy Investing,

Mike

There isn't much equity so probably not much of a wholesale fee. Bring it up to your local buy and hold investors. You may be able to assign it with some sort of option to buy back in the future. 

There are obviously a lot of unknowns here, but If that 4.5% is a fixed rate you may have a good lease with trailing option on your hands. Make the lease payment equal to the mortgage and the strike price = to the principal balance at time of executing the option. Assuming the financing allows for cash flow you could be looking at a zero down rental providing CF and growing equity as the principal is paid down. That rate suggests this is a newer loan. If it is not a newer loan it could have been modified. If that's the case look very closely at the modification and terms thereto.

Hi Robert You'll meet lots of like minds at the RareBird Investor Network. We meet 1st, 2nd and 3rd Mondays of the month. Lucky Lab pub in Multnomah Village. 6:30-9:30 PM. Good beer, pizza and discussions. Hope to see you there. Be sure to introduce yourself. Happy Investing!! Mike

Besides considering whether or not you want that type of business..... Understand the valuation of partial interest properties. I see these a lot. The 50% ownership of a 250k property isn't necessarily worth 125k. Be sure to negotiate the value before buying them out. Remember that a fractional interest lacks control. This results in a smaller buying pool. Restricted buying pools = less demand. Less demand = less value. In regard to financing, yes there is probably a good chance you can buy them out and then refi the cash back out. That all comes down to your business model decisions and other property owners. All owners would need to sign on the lien to encumber the prop. One of the reasons partial interest properties have less demand/value. Check with some attorneys and appraisers about "discount rate" being used in your area. My 2 cents Good luck Mike

This is such a deep topic. Lance, great job getting it going with some other thought processes. I like the "boots on the streets" approach to knowing your market. Take your smart phone, know your local online data source (portlandmaps.com for Portland) and go watch the activity. Go in side as many open houses as possible, look for dumpsters, research sales history, check out permit history for the renovations you find prior to them hitting the market, watch DOM, pay attention to the "players" in your market place, keep a very close eye on rents and retail prices, call all the FSBO signs you can, create your "drive for $" list, talk to locals, knock on some doors, drop off some door hangers.

When it comes to knowing your market you can get a lot online. All the stats and such, but when it comes to working the streets you can become intimate with your market and take those stats to a whole nother level. Of course this doesn't work well if you're investing out of area. The biggest reason I invest in my "back yard"

I also take "know your market" further to "know your buying pool". When you're looking at a specific opportunity...identify that retail "buying pool" and work backwards from there on your number crunching. 

Matthew and Corey. There is a new REI Club in Portland. Here's a link to their free meetings in August. This is a local club, no "national gurus" invited; thus no sales pitch. The local forum experts will be just that. Local experts sharing their expertise without a sales pitch.

http://myrarebird.com/events/

@Harold Anderson....thanks for noting RareBird!!! Much appreciated. 

@Casey Winder....all of our meetings in August are free. As Harold stated we moderated a "developers" meeting at the Northwest REIA for about two years. We started RareBird in order to provide more relevant content for the Portland area investors. Look forward to seeing you sometime in August. The meeting with Toija Butler (1031 exchange) on the 11th is going to be fast and informative. Learn about land value on the 4th and our deal analysis meeting is on the 18th. You'll meet wholesalers,rehabbers, lenders, brokers, etc.. Plus, we have our own private bar tender at the Lucky Lab Pub in Multnohah Village.

I hope this post isn't considered self promotion. I just wanted to follow up with your question to Harold. Our URL below. You can find PDFs of past meeting power points on our site as well.

http://myrarebird.com/events/

Hi Peter

Lots of good advice on here. Portland has a lot to offer. As Jeff S mentioned investing in Texas for cash flow may be a good idea. Portland is an "appreciation" market rather than a "cash flow" market as we're seeing cap rates in the 4s and 5s. You can find 6+, but they'll be located in less desirable areas with higher vacancy rates and management head aches. All of our hold properties are "seller financed" deals where we were able to substantially increase cashflow through management and repairs. The local REIA is a good way to meet investors. The vancouver market has a free goup called REVIN. There is a new club in Portland as well; RareBird. Check them all out. They're the 3 main groups in this area.

Happy Investing,

Mike