All Forum Posts by: Thomas Gerhart

I have some very specific questions about buying properties at the court house via a sheriffs sale.  I know each state and even county has a different process.  If anyone has experience buying through a court house auction in Oregon and even better, Lane county I would love to ask you a few questions.  I appreciate your time. 

What part of the coast? For an income property you are best off to buy plans online. But for a small house draw up what you expect and be very specific or they will take liberties that you may not like. Any decent contractor will be busy and very expensive. It’s a hard area to build economically if you are going to be hands off. I imagine your biggest hurdle will be with labor. I am currently building a home in heceta beach that is 728 sq ft and plumbing alone was quoted at 15k. I did it myself since i am owner/builder but things can add up quickly. Septic could be 30k+. Do your homework and plan ahead. 

Did the seller not sign the FHA amendatory clause?

You will have a bunch of realtors fighting for your business especially on BP. Make sure to ask the right questions. Why will they send you the best deal if they have other investors they work with? Are they familiar with foreclosures and auctions? Do they have logins, accounts and relationships with the few realtors that list foreclosures? Will they write contracts for off market deals and how would they be compensated? Any house worth buying will have multiple offers if not 10+, what tactics will they use to get yours accepted. Any realtor that works with serious investors should have answers to these questions. Be wary of realtors that promise you the world, working with investors is very demanding so it takes the right person. And also you will have to get along with them on a personal level. I am in no way anti realtor, just have seen too many that do terrible jobs and cost their clients time and money. Good luck. 

Not having a strong W2 job will be your biggest downfall.  Cash out refi's and investment property mortgages will be a nightmare. House hacking is your best route to get your foot in the door and build equity and prove to financial institutions that you are capable of being a landlord. Building a Stock portfolio and actually taking out profits as income are two completely different things.  You will most likely need to show "taxable income" for about two years to have it be considered an actual job.  There are always private money lenders that don't care about income, just if the numbers work on the property.  

Keeps things simple, I wouldn't worry about an LLC at first. Starting out you wont be able to get loans with an LLC unless you personally guarantee them. Eventually it will make sense to transfer your portfolio into some form of corporation for tax benefits and protection. Real estate is hard enough to get started in. I would focus your time and money elsewhere at the beginning. If you are a career real estate investor you will most likely be sued at some point and the IRS will come knocking on your door. Just be prepared, have a real estate savvy accountant and attorney. Get started and then start piecing together the puzzle as you go. Most people are great at the preparation side of things, getting a license, setting up accounts, researching/school and never get passed that part. Don't waste thousands of dollars until you are in the game.

Prices have increased in such ways that buying SFH's in central Oregon or even along the I5 corridor are hard to cash flow. Even duplex's are hard to get the 1%. Either a large down payment or rehabbing is about the only way. With rates and inventory as low as they are that people are going nuts. Smaller markets are hot right now too but have larger risk for the future. If you just want to park your money somewhere put a large down on a solid home in a good market. The bubble will burst eventually so maybe just build capital and be ready to strike when the time is right. The market for investors has only gotten worse over the past year. With the governor having no grasp on the economic consequences for the eviction and foreclosure moratorium eventually things will come to a head. I hate giving people I don't know advice but that is my two cents. Best of luck.

Honestly.... Any prime campus homes will not make sense to "househack".  There may be some sub prime campus homes available for around 300K.  There again bedrooms go from 400-600 a month for houses.  With that being said your daughter will still be paying you rent for her share.  The past few years things have skyrocketed here.  I wont be the typical bigger pockets person and be naïve and overly optimistic.  (No offense, Ok maybe a little) Too many Californians have been buying up anything that makes sense or tearing down old homes and building "luxury" townhomes.  Its a tough market for rentals. You can find deals here but campus is definitely tougher.  Please prove me wrong. Best of luck.   

looking to sell a home acquired for a flip in yachats OR. good spring/summer time project. 1992 manufactured home off of hwy 101. 1350 sq ft. vaulted ceilings no paneling, 2x6 wall, attached 2 car garage. finished product will be very desirable home. ocean view. ARV 220K asking 110K. message me if interested for more details,

There are very few true "deals" and if you don't have your foot in the door with a current wholesaler good luck. Not to discourage you but I am sure any genuine wholesaler will have a buyers list a mile long and will most likely go to people they have previously done business with or can gain something from them. My advice would be to create your own deal. Target houses you know you want to buy. Honestly, post a craigslist ad, spread word of mouth with everyone you know and call people directly from tax data as you see fit. Those options are free and if you literally put a few hours into it a week you can find something. Be prepared and do your homework.  Time wasters and tire kickers are the worst.  One big reason a lot of wholesalers go to people that have proven track records of closing.