All Forum Posts by: Tim Wade

Play nice, boys! :o)

Hi Mike,

I noted in the brief comment that this would be a second lien.  My assumption is that most institutional lenders wouldn't take a 2nd position.  I'm also already getting private feedback that my LTV is too high for private lenders to want to take this on either.

Thanks for reading and the comment tough.  I appreciate the question.

Best,
Tim

Hi All,

I've got a great little portfolio of very successful vacation rentals in Oregon Wine Country.  I'm looking for a private money lender who wants a low risk quarterly payment on a second lien note against these properties.  Note term 3-5 years.

I want to pull out some equity to invest in a new development I am working on.

Anyone in the forum have any recommendations?  

Thanks!
Tim

I would love to connect with investors who appreciate wine, hospitality, and the Pacific Northwest, and who want to participate in a small but exciting project in the Willamette Valley!

We have the land, the architect, the business plan, the pro forma, financing, and two-thirds of the capital ready to go. We are currently working on land-use permits and looking to finalize our funding.

I get why they did it but c'mon guys, don't shoehorn the Willamette in there with Napa!

Investment Info:

Single-family residence other investment in Mcminnville.

Purchase price: $130,000
Cash invested: $150,000

A buy, fix, refi and hold - after refi, we were $30k into the house. Generates 75k/year gross and nets approximately 20k.

Hi Tom,

Those revenue numbers are wild... they're higher than I would have thought but those three properties are pretty sexy.  If you can design something like that and hit those rental numbers than you're going to be very, very happy with the investment.  Based on my experience of running properties, even if the build were to cost you as much as $600k but you could generate $125k/year, you'd be very happy with that investment.  It would cash flow nicely.

One item to plan for from the beginning is the exit.  I'd love to hear others' opinions on this but I am a fan of making the house as attractive as you can to a potential buyer, even if that adds cost.  You will get a higher appraisal (more money out on a refi) and have better appreciation and an easier path to a sale when that time comes.

Very exciting stuff!  Let's connect soon.

We just went pending on our next place in McMinnville.  Decided to grab another one there since we've already built out a great team and the lift to get it running will be light.  But I hope to join you in Packwood soon!

Cheers,

Tim

Hi Tom,

I love crunching numbers and thinking about returns.  My wife and I also invest in STRs and I spend a lot of time working over the best place to buy our next property.

I've been looking at Packwood recently for a client.  I'm an agent in addition to being an investor.  I'm excited about the potential but I don't know about $120k/year. My first impression is that your numbers in the current economic climate seem a little rosy.

I also have friends that are builders and I try to stay in touch with them on costs as we mostly do "to the studs" renovations when we buy a place.  I'm curious about the size and quality of a house you could build for $375k.  Does that include utility service to the house, a driveway, septic and well?  Because just those costs can run you close to $75-100k if you hit any snags.

I love talking about investments and I love the Packwood area, if you want to dig in more, I would be happy to jump on a call!

If you want to see an example of one of our projects, here is the airbnb link:

https://www.airbnb.com/rooms/4...

Hope I can help!

Best,

Tim

The guy to check with is Kol Peterson. He is one of the main ADU experts in Portland. I took a class with him last year and he knows his stuff. My recollection is that the rule is 800 sq ft but that that only applies to new buildings. Since you are talking an existing building the regs don't apply to the size because it already exists. For example, if you own a home and want to rent it out, the city isn't going to come to you and say that existing home is too big to rent.

That said, you should definitely check with him and not take my word for it.

His website is https://accessorydwellings.org...

I'm sure if you send him an email, he'll point you in the right direction.

Cheers,

Tim

Hi Frank,

I'm a real estate agent and investor here in OR.  I live on the west side in McMinnville.  I'm centered here for now but think I'll be moving into Portland within the year.  I invest in McMinnville because we renovate older homes with character and do vacation rentals.  Our business is focused on the wine industry that runs up and down the Willamette Valley.  We've focused and created a little niche for ourselves.

I mention this only to say, it depends what you are wanting to do with the properties as to whether Bend is a good area or not.  Knowing what I do about the tourism over there, I think you might have better luck at vacation rentals.  I have found that because of our relatively high purchase prices in OR, it is hard to get the same cap rates as other areas.  And yet, rents are not that much higher when you get out of Portland metro.  The other great thing about vacation rentals is that it takes rent control and tenant laws out of the equation as those laws don't apply to vacation rental properties.

To be sure, there are plenty of other laws that do effect you as an investor if you go this route.

If you'd be interested in a conversation, I'd be happy to tell you more about what we do and why.  Depending on your interest, we could always talk about working together somehow too.

Best of luck!  I've only been in Real Estate investing and sales for about 3 years now and it has totally changed my life.  It's a wild, fun ride!

Cheers,

Tim