Experienced Portland Investor Looking to Grow Network

29 Replies

Hi!

I own about 50-60 units with a focus on long term buy and hold strategy (BRRR).

I am looking to connect with investors who are interested in the buy and hold strategy in the Portland Area or looking to relocate to the Portland Area. I am looking to share my knowledge and provide a pathway to becoming a full time investor.

If you know any investors or budding investors who are looking to get started in Real Estate Investment I would love to talk to them.

Cheers!

Chris, how is that system working for you? How often do you get all your you invested in the deal BACK on refi cash out? If not all, what percentage? And how much would you estimate on those 40-50 holds actually came out of your pocket total? Real interested in that part!

Hi Cynthia,

I would say that over the course of the 8 years we have been managing our portfolio, we have successfully pulled out 100% to %125 on half our deals, the other half we've gotten somewhere between 75% and 100%.  Our capital is locked up for about 5-6 months during each remodel and refinance.

I have been working full time as a REI Investor since 2009 and investing all of my income back into our portfolio. I don't take a salary and have been leveraging up by using the banks' and other peoples' money as much as possible. About 5 years ago we had a hunch that inflation would go up a lot (it hasn't) and made a plan to get as much low interest financing as possible. It was a decent strategy and hasn't hurt us.

I started out with about $150,000 and now share a multimillion dollar portfolio with my brother. 

We have a loan to value ratio of about 55% on our current portfolio which means that we have 45% equity.  

We have leveraged this equity with multiple credit lines which allows us to access cash when we need it.  

I am hoping to do my first 1031 exchange on the first property I ever bought (in 2007, yes a bad time to buy) which is in Arizona and I am looking for 10+ apartment complex so that I can create a large amount of cashflow.

The most difficult part of the whole strategy is running our property management company, which we are looking to grow.  Bringing on employees has been a very difficult but fruitful experience.

I am a licensed lawyer and RE broker. I have a general litigation practice and also have a side real estate investment company. I work with all types of clients on all sizes of projects, and their litigation needs. I have a good professional REI network.

Brian Bradley, Attorney in California (#266693), Michigan (#P77453), and Washington (#50116)

I'll see if my brother and I can make it to the happy hour!  We also own a brewery on the other side of town, Uptown Market.  

@Brian Bradley - if you're interested in meeting up, we are looking for a RE Focused Lawyer to partner with.

Cheers!

Chris, how is that system working for you? How often do you get all your you invested in the deal BACK on refi cash out? If not all, what percentage? And how much would you estimate on those 50-60 holds actually came out of your pocket total And ?approximately, how much of each down/closing costs(per deal) were you able to recover, percentage-wise, of that money on your cash out refi to enable you to reinvest in another hold?, I'm real interested in that part! I am trying to find some cash out companies to use as my exit strategy until TVC gets our refi program launched to fulfill this very important role in the BRRRR. Are you doing an 80 or 85% Arv or less? And you use the ARV time .7 minus repair costs equation? Sorry to pile so many questions but I sure would like to hear it from the mouth of experience rather than from a theory. What part did you have to tweak or did you have the most trouble implementing?

I need a thorough understanding as well as areas of extreme importance to follow in order to teach my clients. I certainly don't want to steer them wrong, but instead, give them the gift of the Brrrr. Although it sounds like a no-brainer, I realize it's much more exact than it sounds...thanks

Hi Chris, I’m a newbie in real estate investing.  Wholesaling currently to raise enough for fix and flips. Ultimately the goal is building a portfolio for passive income stream. I would love to meet you for coffee. 

Hi Cynthia,

I think that I can best answer your questions by showing you a project that I am currently working on.

I recently purchased a 3br/2ba in a pretty nice neighborhood in Portland for $304,075.  We got a good deal on this property, other bidders had offered $330,000.  

We put our offer in originally at $311,000 with $5,000 of concessions, but we had an escalator clause (saying we'd pay $1000 more than anyone else, this generally works for us, if it gets crazy we can always back out during the inspection period, but I've never done that) which was accepted.  This put our starting number at $336,000 or net $331,000.

We then deducted my realtor commission of $8400 and then after the inspection period, we negotiated a $18625 seller concession due to the condition of the home.  

We purchased the home in "cash" (we used the credit lines that I've created with equity from our portfolio).  Here it is.

https://www.zillow.com/homedetails/6636-SW-32nd-Av...

One side of it is on a semi-busy street, a buyer would be very concerned with this, but an appraiser would not (because they operate by using a computer that pulls comps to make their job easy).  This is a very very big deal, because it allows you to get a much  higher after rehab appraisal value vs purchase price, than if you bought a house in the best neighborhood.

We plan to do about a $100,000 rehab and add about 550 sqft ( (enclose RV carport, and enclose deck on the north side and build a new deck, as well as remodel the whole house).

Once the house is done we expect the appraisal to come in at $500,000 or $550,000. I am trying to get my wife to move into this house with me so we can do an 80% LTV 30y fixed loan with a low interest rate, but otherwise I'd do a 30y fixed 75% LTV investment loan.

If it comes in at $550k and we get the 80% loan then we'd get 110% of our capital back. If it comes in at $500k and we do the 75% LTV we'd get 93.75% of capital back. The home would likely sell somewhere around $450k or $475k so it wouldn't be a good flip because there's just way too much risk there, but since we are not planning on selling the house it's a single or a double for us.

 I don't really use an equation... I always look for opportunities to add sqft and to create value that would be convincing and seen as valuable by an appraiser.

This is a very typical deal for us, we've done about 30 of these buying most of our homes on busy streets or near the highway or with bad parking. They make very good rentals, but are more difficult to sell.

Hope that answers your questions.

Hey Chris. Thanks for reaching out. 

I am new to REI and would like to shadow experienced investors like you before I make the plunge with a multifamily property in a few months. I will also be at the local BP happy hour by Jesse. Looking forward to meeting you all.

Originally posted by @Chris Shepard :

Hi Cynthia,

I think that I can best answer your questions by showing you a project that I am currently working on.

I recently purchased a 3br/2ba in a pretty nice neighborhood in Portland for $304,075.  We got a good deal on this property, other bidders had offered $330,000.  

We put our offer in originally at $311,000 with $5,000 of concessions, but we had an escalator clause (saying we'd pay $1000 more than anyone else, this generally works for us, if it gets crazy we can always back out during the inspection period, but I've never done that) which was accepted.  This put our starting number at $336,000 or net $331,000.

We then deducted my realtor commission of $8400 and then after the inspection period, we negotiated a $18625 seller concession due to the condition of the home.  

We purchased the home in "cash" (we used the credit lines that I've created with equity from our portfolio).  Here it is.

https://www.zillow.com/homedetails/6636-SW-32nd-Av...

One side of it is on a semi-busy street, a buyer would be very concerned with this, but an appraiser would not (because they operate by using a computer that pulls comps to make their job easy).  This is a very very big deal, because it allows you to get a much  higher after rehab appraisal value vs purchase price, than if you bought a house in the best neighborhood.

We plan to do about a $100,000 rehab and add about 550 sqft ( (enclose RV carport, and enclose deck on the north side and build a new deck, as well as remodel the whole house).

Once the house is done we expect the appraisal to come in at $500,000 or $550,000. I am trying to get my wife to move into this house with me so we can do an 80% LTV 30y fixed loan with a low interest rate, but otherwise I'd do a 30y fixed 75% LTV investment loan.

If it comes in at $550k and we get the 80% loan then we'd get 110% of our capital back. If it comes in at $500k and we do the 75% LTV we'd get 93.75% of capital back. The home would likely sell somewhere around $450k or $475k so it wouldn't be a good flip because there's just way too much risk there, but since we are not planning on selling the house it's a single or a double for us.

 I don't really use an equation... I always look for opportunities to add sqft and to create value that would be convincing and seen as valuable by an appraiser.

This is a very typical deal for us, we've done about 30 of these buying most of our homes on busy streets or near the highway or with bad parking. They make very good rentals, but are more difficult to sell.

Hope that answers your questions.

Very cool that you've been able to accumulate so many properties over the years. Can you help me understand the numbers and your strategy a little deeper? Does the property cash flow after refinancing all of your capital back out? I imagine with holding costs you are all in for a little over 410k, given the 100k in rehab you are putting in.....I'm assuming rent is in the ballpark of 2000/mo for that location. If you have a 410k mortgage at 4% on a 30-year fixed then your PITI is over $2400 so it appears you would be in negative cash flow territory, is that accurate?

@Omid A.

I have a 3br/2ba about 2 miles from there that rents for $2995/m that is about 15 years old, but definitely very nice and in a little nicer area.   My guess is that a completely newly remodeled house would go anywhere from $2500 to $2800, but potentially as low as $2300. 

If it was negative cash flow, it’s not the end of the world.  I see single family homes as more appreciation plays.  Obviously we don’t want anything that is seriously negative cash flow, but if it’s $100 or $200 that will be made up over time as rents go up.  If I was looking for cash flow I’d be looking at multifamily properties. 

@Chris Shepard Gotcha, thanks for clarifying. Keep killing it man, I would be tempted to take my chips off the table. 

Hello @Chris Shepard ! It is awesome to see experienced investors in Portland willing to help out other local investors. I am a real estate broker in Portland as well and I am always looking to grow my network. 

I work with a lot of newer investors and would like to hear a bit about what you do specifically and what you mean by sharing your knowledge. 

Jacob Wathen, Real Estate Agent in OR (#201222796)
971-236-3552

@Jacob Wathen  

Hey Jacob,

Thanks for the response.  Our strategy is a long term hold strategy, so buy and hold is our main game.  

As far as sharing my knowledge, I really meant just sharing experiences that I’ve had that might benefit others. 

Right now specifically I am looking for a person to start out in a leasing agent position that would grow into other opportunities at our company. 

Hello Chris,
I’d be interested to chat with you. I’m experienced Wholesaler and relocated to Portland. Started advertising and I have a project I just put under contract.
I’d love to keep it but would need an investor to pull it off. Or... It may be best to wholesale this to someone.
It’s a nice home on 3 lot deal in Tigard.
Any ideas where to list wholesale projects I find in Portland?
Also, what’s a good group to network with to find and rehab homes in Portland?
John

800-560-2242

Hi Chris,  do you help other people manage their rehab projects too? This is something we can use some help with. Brrrr has been our strategy to accumulate rental properties in the Portland area.  We have been doing well.  We do both, flips or hold, depending on what makes more sense on that project.  We will be at the meet up on the 17th.  Hope to see you there to exchange notes.  

Thanks, 

Kayla 

Hi @Kayla Truong

We shy away from doing construction projects for other investors, unless it’s a turnover for a property management client.  So as far as managing a remodel for a fee, we don’t do that.  I would be happy to hear about what you’ve got going on and see if there’s any value that I could add. 

Hi Chris,

It would be great to meet up and share experiences. I trying to expand my knowledge and build my REI business. I'm a General Contractor and I only work on investors projects and gain a lot of insight on how different investors approach things. I will be at that meetup on the 17th and it would be great if you can make it. Oh, and I've had a few beers at your Scholls Ferry location!

@John Rowan Rarebird Investors has a meeting the 2nd Thursday of the month (this Thursday)    http://rarebirdinvestors.com/

Daniel S McNabb, Contractor in OR (#215310)
503-927-1154

For those that want to meet Chris, he will be attending our BP Happy Hour on the 17th. He has agreed to speak for 15 minutes and then ask questions. I'm excited that he's going to be there and share his knowledge.

The meeting starts at 5pm for happy hour and networking, and Chris will be presenting at 6pm.

https://www.biggerpockets.com/forums/521/topics/52...

Hi Chris,

Very nice of you to offer your time to help out other local investors! 

I'm sort of stuck at the moment, as am not sure which direction to do. Perhaps a chat would be helpful!

Thanks in advance!

@Chris Shepard

I am with a property management company up in Clark County (Vancouver, WA).  Do you do anything up in Clark County?  We are always looking to work with investors and assist with leasing and property management as needed.  We specialize in single families and smaller multi-families.

@John Rowan I am a flipper in Washington County.  I would be happy to talk a look at your wholesale property. 

Hey @Chris Shepard

I'd more than love to connect with you. I am currently in the market to purchase my first property and have proclaimed that 2018 will be the year I close on my first deal. I will be at the meet up next week to hear your presentation.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.