All Forum Posts by: Ryan Wallace

Quote from @Gibson Beus:

Hey! I'm new, I just signed up with bigger pockets but I am absolutely stocked to be here! 

I was curious to know if anyone could help me out, I'm only 20 years old, I don't have a credit score or any credit cards, but neither do I have any debt or bills seeing that I am living at home for the time being. 

Do any of you more advanced investors have some advice, pointers or guidance you could lend?

I have considered partnering or Co signing with my parents on a house hack up at college yet still unsure with the direction. 

Any comments or advice would be awesome! 

Thanks and have a great day!

Welcome to BP! Your light years above your peers just by signing up and seeking advice. Luckily Boise has some amazing first time homebuyer programs so seek out a good lender. But first, as other have said, get a credit card and start building up that credit. By a couple small things on it each month and pay it off every month.  If you are getting help from your parents for college look into putting student loans in your name and then having them pay them off after you finish your course. This will show once again good credit usage on larger loans only increasing your credit score. 

Talk to your parents about house hacking at college. When I went to school a decade ago I talked my parents and grandparents into a partnership to buy a duplex near the school. I put down all my savings and they matched it for the down payment and co-signed the loan. I then managed the place and got roommates to fill all the rooms. It provided a nice cash flow for them and covered my room and board expenses. This investment worked out great for them to this day and the property has almost tripled in value. 

Best of luck and let us know if you have any questions. 

Hi @Stacy Raskin! Does this program require receipts for labor, materials, and general improvements to increase the value or will they just look at the appraisal? We have run into issues before with forced appreciation property and a lender only being willing to lend on the actual dollars spent instead of the overall market value. It kind of defeats the purpose of BRRR deal.

Just wanted to see if anyone would be interested in putting together a small networking group to grab coffee before work on a weekly or bi-weekly basis. Nothing fancy, just casual conversations, some goal accountability, and lessons learned. Please no sales pitches or sales networking.  Agents, lenders, investors, contractors, first time investors, etc are welcome!  

Leave a comment below and I will PM you directly so we can get added on a community group email! 

Thanks BP Community! 

Quote from @Daven Vieau:

Hey Erin, my name is Daven, I realize I'm 9 days late to the party but I'm a local Boise RE agent. Seems like you may need a new agent, someone who has the more balls to the wall approach like I do. At the end of the day my input is worse case they say no, then after you could reassess the situation. Regarding your intent and the 2 year balloon idea, allowing them to clear the estate, and keeping it at current mortgage rate.for interest, is a legit offer, what tends to be the hang up is lately everyone in our area is wanting a sizable chunk down to show you have skin in the game. Do you have any private financing available? Gift funds? I'm sure I probably stated the obvious, if I did ignore this.

I think he’s looking for advice, not a new agent…

In all seriousness though, seller financing is sticky in a lot of peoples minds. Quite a few older folks got burned in the past or heard about some who got burned (most seller financing horror stories are from their cousins best friends aunt). You and your agent have to sell them on it. Try the options approach and offer them three offers. A seller finance offer, a traditional low ball conventional offer, and a third hybrid. Let them see that the the seller financing can be a win for all parities when looking at three different options. Often times things get lost in translation when communicating agent to agent and then onto the seller. Putting words in writing however, is pretty dang clear. 

I have an off market property that is going to be going up for sale. Owner wants 615k. Rents are currently $1500 a side and under market for the area. Current loan on the property is for 300k at 5% interest only and can be assumed by a new buyer. The property is located right near the Boise River in the latest redevelopment area. PM me for details or information. 

Hey @Adam Smith. Deals are still around, you just have to have some connections and get creative. I might have a deal on a duplex with owner financing in the Boise North End coming up if you are interested. 

Just to echo other, the CE shop is great. Easy to use and self-paced

Quote from @Benji Halpern:

Hi! I've saved up $100k and am looking to invest the money in real estate. I currently live in Los Angeles and am not so excited to invest nearby because of the high prices and unfavorable laws towards land lords. Additionally, if I were to invest in Southern California, I most likely would not be able to afford anything in a safer community. Thus, I am debating whether to invest out of state or keep saving up.

I have some family in Boise, Idaho and have heard great things about the growing community. I was thinking to invest in a multifamily property, like a duplex or triplex in the $500-600k price range. For those familiar with this market, is this a normal price to expect? I've done some quick searches on Zillow and this seems to be relatively realistic. What are some things I need to know going forward? Thank you all!

 Hi Benji, 

The Boise MSA is a great option to consider investing, but it does have some challenges like any area in the country. There are definitely some great options at the 500-600k range, depending on area and condition. Demand for multifamily still remains fairly high even though the broader market has experienced a slight price correction over the past 6-8 months. One of the biggest challenges we see across the entire state and the country is properties not penciling out at 80% LTV (20% percent down, 80% financed). With interest rates on multifamily investment property being around 7%, many of these properties are not generating enough income to cover the debt service at 20% down. I have had good success with off-market deals, renovations, and house hacks, but most of the MLS listings that you see on consumer portals (zillow, realtor, etc) are properties that are overpriced for the income that they generate. If you have any other questions or want to chat further, please reach out!

Quote from @Tracy Ross:

I'm here in Boise and it's one of those markets that has been hit harder by the "correction" But our market is seeing an uptick in buyers and we still have fairly low inventory. Anything under the $300k price point is getting picked off right now. 

I think we may have more inventory come spring, but I think we are going to flow through this year with a fairly balanced market. I don't foresee a "crash" 

 I definitely echo what Tracy has to say bout the Boise Market, however there is movement in other areas. Prices seems to be somewhat stable (at this point) but sales volume is way down. Typically the Boise market sees a seasonal slowdown of around 40% (as measured in sold volume for canyon and ada county), but from what I have been measuring, we are off the seasonal average by roughly 27%. Meaning volume is down 27% for the winter months when compared to a typical year. In fact, the last time we saw numbers this low was in 2015 and before that 2009. Is this a major concern? Only spring time will tell. What is interesting though, is the huge transition we are seeing in the employment sector. Firms are cutting costs in numerous ways including hiring freezes, "restructuring" aka layoffs, overall work week hour reductions, etc. We have had some major employers in the MSA announce large layoffs and the real estate sector is experiencing some pretty drastic movement (lenders, agents, builders, title officers, etc.) leaving the industry or getting laid off. 

This observation is at a local level though, national economics are seeing similar trends, but there is some other turbulence in the form of credit default rates and rising credit card debt levels. I don't think we are in for a "crash" in the single family real estate world. I think we will see correction/ flatline in 2023 as long as unemployment remains relatively low. If we start to roll those dominoes over, we could see some more drastic changes. 

Its still not a good reason to not be investing. Consumer sentiment is down, which means opportunities are ripe. Im just advising clients to be cautious when underwriting deals and plan on playing the long game at this point. 

Quote from @Bryan Morris:

Hello Boise BP Community!

I, like everyone else in the Treasure Valley, received their county property tax assessment and noticed it increased 46% from 2021. I plan to appeal this as even with as hot a market we're in 46% is still way higher than any appreciation I've seen. 

I found the website for the Idaho Board of Tax Appeals here: https://bta.idaho.gov/#:~:text.... 

As well as the form for filling out the appeal here: https://bta.idaho.gov/wp-conte... 

My question to everyone is has anyone successfully appealed the tax assessment and what evidence did you use to support the appeal? 

Thank you all and I hope these links and conversation can help anyone else looking to do the same thing. I know I'm not the only one and others have it a lot worse, my co-worker's assessment went up 84%!

Cheers!

Bryan Morris

 Hey Bryan, I wanted to follow up and see if your appeal was successful?