Hello...Is Seattle there? (Agent? Contractor? Mariner's Fan?)
Leesburg, VA · Member since 2013 · 42 posts · 9 votes
Hello...Is Seattle there? (Agent? Contractor? Mariner's Fan?)
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Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
11y<--- In Snohomish.
Everett is cheap- I'd go there.
If you go out of your way to tear down 100 year old homes in Snohomish- I'll never forgive you.
But- I am willing to help as long as you don't destroy historic home haha
29 Replies
- 11yColin SmithBusiness MemberRealtor · Colorado Springs, CO · Member since 2013 · 987 posts · 447 votes
I would recommend using the network tool here on GP to find the people your looking for. Just be sure to contact people who have been on the site recently and not someone who hasn't logged on for two years. As soon as you get out there, I would start attending your local REI meetups asap to meet other investors, network with them, and find out who they are using.
- Seattle, WA · Member since 2015 · 500 posts · 243 votes11y
@Robert Slatkin - Welcome to the Puget Sound! Home to ridiculous prices in Seattle, and an unfair reputation for lots of rain. Stick to it with the networking, the "Seattle freeze" is real but you're sure to crack through some of those shells soon.
I would recommend touching base with @Troy Fisher as he runs one of the meet-ups in the area and may have good contacts and word of other meetups you could attend.
I don't personally have anything to offer you as I am just getting started myself, and am more interested in small multifamily at this time, but I wish you well and hope you can hit the ground running.
- Lynnwood, WA · Member since 2015 · 221 posts · 157 votes11y
@Robert Slatkin drop me a line if you'd like - I can give you some basic Snohomish info. Not looking to partner, but if you need a friendly broker/developer with more detailed local info, a friend of mine does ldmr builder lots here.
$609,000 in 2006, $355,000 in 2012. Everett, WA.
- Specialist · Kirkland, WA · Member since 2013 · 1k+ posts · 817 votes11y
I know people! Lots of People! It's great that you are reaching out before you get into town, Connect with me, and let's chat!
- Specialist · Kirkland, WA · Member since 2013 · 1k+ posts · 817 votes11y
Thanks for the Shout Out @Alex Chin!
- Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes11y
<--- In Snohomish.
Everett is cheap- I'd go there.
If you go out of your way to tear down 100 year old homes in Snohomish- I'll never forgive you.
But- I am willing to help as long as you don't destroy historic home haha
- Investor · Snohomish, WA · Member since 2014 · 115 posts · 68 votes11y
Welcome to the Puget Sound region!
I'd recommend that you look for deals north of Seattle in Snohomish county, about 30 minutes north. Especially east of Everett and accessible via, and north of, State Route 2, the primary east-west corridor that starts from downtown Everett. This is where many of the Seattle price-outs are buying. South of SR 2 is mostly flood plain, then it's King county (where Seattle is located) and much higher prices, even though the commute to Seattle is about as long.
The lifestyle quality north of Seattle is much better than the areas to the south. East of Everett is much better than in the city, which is in the early stages of gentrification, with a lot of inexpensive SFR rentals in tough shape. So, the tenants who are attracted to the lower rental prices can be rough at times, and this is reflected in the neighborhoods. Unless you're going long with your investments and don't mind B/C-grade tenants, I'd avoid Everett for now for entry level.
Home prices in the semi-rural eastern county are about 1/2 of Seattle prices, are currently appreciating at about 12% annually, and there are lots of entry-level fixers to be found there. There are a lot of REI folks here and the competition for extraordinary deals can be challenging.
I invest in raw resource land in the county with Transferable Development Rights with an even higher value than the asking prices for the land. You get to turn a fast profit and still keep the land. But, this is a pretty esoteric strategy and, once my current 14 acre TDR deal wraps up, I won't be needing investment partners.
In my researching for TDR land, I often run across great SFR fixer and/or teardown redevelopment deals that I'd consider if I was 20 years younger. A "building-ready" lot is worth around $100k and there are plenty of these with old mobile homes, in about that price range, that can be quickly replaced with a new house, without having to go through time-consuming septic approvals, environmental reviews etc. The county's Planning department is pretty lame and, with ever-more-challenging development requirements, it can take a long time to get the things done that they require with raw land developments.
I've recently started preparing pre-screening assessments on these types of potential investments for others who have found deals on RedFin, but aren't in the area and/or familiar with the neighborhoods. This is a general assessment of the neighborhood and how this property fits into it, as well as the general physical conditions that need to be addressed to make it rentable. This isn't a hard physical structural inspection by a qualified contractor. I'd start searching on Redfin for homes under about $125k.
Generally, if the recipient buys the property that I assess, they flip me a $500 fee. If my recommendation is a fast no-buy because of a dealbreaker, I give those away for free. I'll be happy to do this for more people. If they're steady buyers, I'll also bird dog deals, although I don't do formal wholesaling with a locked down property etc. I've lived in the area my entire life and I'm mostly a native guide with REI experience. I'm not looking to do this full time, but it's a fill-in while I'm wrapping up my current deal, which involves some time-consuming boundary line erasures etc.
Please feel to PM me with questions etc.
best regards,
Chris
BTW, I follow the Seahawks, going for a three-pete to the Superbowl. Too much heartache with the Mariners. :-)
- Leesburg, VA · Member since 2013 · 42 posts · 9 votes11y
Thank you to everyone that has responded to me so far. Now I know that there are at least 6 people living in the great NW area of Seattle! :)
@Colin Smith What you suggested is exactly what I have been doing. Thank you for your response. I will keep trying.
@Alex Chin I appreciate you reaching out. I've heard about this "Seattle Freeze" from family and friends I have living there. In my 25+ years of owning businesses, I learned to do whatever possible to never "freeze" anyone out, because you never know who that person is, knows, or if they might be of benefit to you in some way in the future. For instance, when I built one of the largest mortgage broker/lenders in the mid-atlantic region, I stayed loyal to the people that helped me get started. Nothing pleased me more than knowing those people made a lot of money as we worked together. BTW, if there is anything I can do to help you in your business, please contact me.
@Doug N. Thank you. I will contact you within the next couple of days to learn more about the Snohomish/Everett areas and prospects for development there.
@Troy Fisher I have seen your name many times as I have combed through Seattle related materials here on BP. Thank you. I will definitely be in touch with you shortly. I look forward to speaking.
@Natalie Kolodij I'm very happy that you responded to my post. You were someone that I came across on BP (like Troy Fisher) that I really wanted to speak to. I read about what you are doing and how you are investing, and it appears that you have done a terrific job with it. I would appreciate the opportunity to speak to you about the area in general, and any guidance you would be willing to share. So you know, my inclination would be to preserve the character and historic elements of a home, and not to destroy it. So, I am hoping that there will be no need for you to never forgive me. :)
- Leesburg, VA · Member since 2013 · 42 posts · 9 votes11y
Hey Chris. Thank you for the reply and information. I have done some development work here in Virginia and yeah... if you are in the wrong County, you should just go ahead and pre-order a straight-jacket in a color of your liking. It can get crazy!!!
I would like to gather up a few questions, and then speak to you about your post. We will be in touch soon. Thank you again for all the information about the Everett area.
- San Francisco, CA · Member since 2015 · 786 posts · 717 votes11y
Welcome to Seattle. I've been buying and investing in real estate since 2000 and have never seen this market with such low levels of inventory. Most areas have less than 1 month of inventory. Finding a deal on the MLS is a 1 out of 1000 chance. If you know the zoning, sometimes you can find land deals on tear down properties. Good deals will most likely come from "off-market" inventory.
As a realtor with a team of 8 agents that sold 152 homes last year, I can tell you that you're not likely to get good deals from realtors here in Seattle. We also represent the bank as REO agents and finding REO deals here are very tough right now.
In my wholesale/hard money/development/flipping business, we send out tons of marketing and put about 15 to 20 deals under contract every month. In Seattle in today's, you'll want to network with wholesalers rather than realtors. If you send me your email and phone #, I would be happy to send you daily "off-market" deals that we've got tied under contract.
- Contractor · Phoenix, AZ · Member since 2013 · 42 posts · 25 votes11y
@Robert Slatkin thanks for starting such an awesome thread.
I am relocating to the Puget Sound area towards the end of this year as well, it's time to say good bye to the desert. As a general contractor looking to expanded into development the Pacific Northwest offer a great deal more for the long term. My plans include a couple of fix and flips while i put together a small residential ground up project. It's difficult to work out the specifics with having you feet on the ground so any information provided is greatly appreciated!
@Chris Newman I'm currently in research mode and wouldn't be willing to purchase anything till i arrive in the area. That being said i would be interested in information regarding off market tear downs. I'll send you a PM with my email address. @Natalie Kolodij i wouldn't tear down a anything that's 100 years old if it could be saved;)
@Doug N. I would love any information you'd be willing to share! Also could you define LDMR builder lots? I looked up the zoning but what is a "builder lot" Is the infrastructure already installed? How many sqft.
@Ryland Taniguchi In the wholesaling side of your business do market to greater area or is it more concentrated to Seattle. I'll also send you a PM with my info to be added to your list.
- 11yKweku Ako-adjeiPro MemberInvestor · Seattle, WA · Member since 2014 · 36 posts · 5 votes
@Robert Slatkin welcome to Seattle. I'm from the Gaithersburg, Maryland myself but I've been here a while, so I consider myself a native.
Lots of great info that people are giving here. I'm planning to go to @Troy Fisher's next gathering. Hope to see you there. You can also contact @Dee Miles about Meetups. She runs a Snohomish county meetup for investors that work up in that area. Another great resource.
@Ryland Taniguchi connect with my. I have a few rentals around the north end and I'm interested in adding more if the deal works out. Love to be added to your wholesale email list.
- Buy and Holder · Lake Stevens, WA · Member since 2014 · 81 posts · 12 votes11y
Hi I'm a new wholesaler thanks for all the great information guys keep it up an Welcome guys to the Seattle area.
- Investor · Sammamish, WA · Member since 2013 · 106 posts · 20 votes11y
Hello
Excellent information. I have been investing for two years , have a real estate license and contrary to belief, have done last four deals through MLS. I like to work in Seattle area, yes price points are high, but risk is low. The primary play is finishing basements (with enough head room) and that adds instant value.
@Ryland Taniguchi - I would be definitely interested in off market deals.
Thanks
Inder
- Seattle, WA · Member since 2015 · 500 posts · 243 votes11y
@Inderpal Chadha - I'm curious, how are you screening and finding these opportunities? Not really my alley, I'm more of a buy-hold-rentals guy, but I'm always interested in what other folks are doing.
- Leesburg, VA · Member since 2013 · 42 posts · 9 votes11y
@Kweku Ako-adjei Hi Kweku! It's great to hear that someone from the DC area made the transition to Seattle and not only survived it, but seems to be thriving! Thank you for the Meetup advice. I hope you and I can stay in touch.
@Keith Ellis Thank you for the "Welcome." Hope to see you around.
@Inderpal Chadha I think you are are very astute, and although I am not yet local, I agree with you about where you see opportunity. I hope we have the opportunity to meet and speak sometime.
Great, helpful question. Thanks for contributing to the post.
- Investor · Sammamish, WA · Member since 2013 · 106 posts · 20 votes11y
Most of the older properties in Seattle have unfinished basements (one has to be in a good area). Area is important, like good parts of West Seattle, Queen Anne, Capitol Hill, Magnolia, Broadview, Mt.Baker, Leschi to mention a few. Better explained with an example, we bought 3856 38th Ave S Seattle , property in Mt.Baker area from the mls for $425,000. The house was very livable, not a run down (most of the properties we buy are ready to move in but the play is value add), It had a huge unfinished basement. We did a bunch of improvements including adding a bedroom, update the bathrooms, update the kitchen, adding a full bath. created a huge media room, converted 3 bed to bath to 4 bed and 3 full bath. And sold it for $645,000. The only downside was we listed in November and the market was dead in November and December. We had to remove it from listing but when we relisted in February, it sold at full price in three weeks. Hard money ate into our profits though we still made decent money.
Currently working on three more flips at similar price points in West Seattle and Broadview of Seattle. I will let you know how these pan out. hope this helps.
Thanks
Inder
- Investor · Seattle, WA · Member since 2015 · 109 posts · 19 votes11y
@Inderpal Chadha great to here about successful flips found on mls curious about how much was the rehab for that property?
@Ryland Taniguchi I'm definitely interested in any deals you find in the seatac, burien, tukwila, area. Please add me to your list as well
Thanks
- Investor · Snohomish, WA · Member since 2014 · 115 posts · 68 votes11y
Great advice and investment strategy, Inderpal! I love your concept of adding value to the unused potential of a good property, instead of what most people do, which is to try to "recover" the lost value from distressed properties by cleaning up other people's messes.
Your strategy is a step above and I hadn't thought in these terms before. But, this opens many new REI doors. If I wasn't doing something easier and more profitable in Snohomish county, I'd be "finishing out" SFR's to their full potential east of Everett. The MLS is full of these kinds of entrepreneurial value-add opportunities for the creative visionary, while most people are scrambling for the scraps. I love my Redfin! :-)
FWIW, for other local investors, the Puget Sound Business Journal recently said that West Seattle is *the* hot neighborhood to buy in for the highly-paid California tech immigrants. It's out of the urban core and all that nonsense, yet just a 10 minute commute or a short bus ride to work downtown. And, the panoramic views of Puget Sound and the sunsets are stunning. What we consider to be ridiculous prices, they consider to be real bargains, and they've got the money to follow through.
- Seattle, WA · Member since 2015 · 500 posts · 243 votes11y
@Inderpal Chadha - Nice, glad to see another investor who has found his niche. Are you seeing those kinds of numbers across all your flips? 50% value add is nothing to sneeze at!
I would say higher capital flips like that definitely aren't something I'm looking to do myself, but I would like to see if we could potentially connect offline, I'd appreciate a chance to hear a little bit more about your process and especially some of the details like picking out your contractors, etc.
- Investor · Springfield Gardens, NY · Member since 2015 · 14 posts · 0 votes11y
looking forward to working with you
- Investor · Springfield Gardens, NY · Member since 2015 · 14 posts · 0 votes11y
Looking forward to working with you thanks
- Lynnwood, WA · Member since 2015 · 221 posts · 157 votes11y
I would love any information you'd be willing to share! Also could you define LDMR builder lots? I looked up the zoning but what is a "builder lot" Is the infrastructure already installed? How many sqft.
LDMR is low density multiple residential - no fixed number, as it depends on drainage, sewer, and a lot of other things. Builder lots are those lots ready for the home builder - streets, sidewalks & utilities, etc finished. pm sent.
- Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes11y
@Inderpal Chadha hit it right on the spot. You need to find creative ways to add value. These days unfinished basements aren't even enough. Sometimes you need to add square footage, repitch the roof and create different depths in the front of the house to increase curb appeal, etc. Floor plans and layouts are also very important, and sometimes you need to drastically change it to add value and desirability, especially in bordering markets outside of Seattle. It's rare to find the simple rehabs anymore, at least on the MLS. For that, you need to network with a lot of wholesalers or do your own marketing.
We have a few projects purchased from the MLS where we're increasing the value by over 100%, but they require sqft additions (and everything else I mentioned). Here are the numbers:
- $375k purchase price, $200k rehab, $850k ARV
- $250k purchase price, $90k rehab, $525k ARV
- $135k purchase price, $40k rehab, $280k ARV
We underestimated how long the permitting process would take for these (since everyone is building and remodeling now in Seattle so there's a long waiting list), but due to the huge spread, we're still aiming to make good profit.
@Robert Slatkin You seem to be an experienced builder. You'll have a lot of competition here in Seattle, but from what it sounds like, I think you'll do well :-)
I'm not sure if you're already filled up with realtor recommendations, but let me know if you want another one (and in what areas).
- Leesburg, VA · Member since 2013 · 42 posts · 9 votes11y
Hi Nghi. Thank you for your input on the post!
May I ask, considering the city/county approval process, how long are your extensive rehabs taking on average?
Also, if you have an idea, on a raw building lot in King and Snohomish Counties, how long is it taking to get from preliminary plat to approval to build? (Maybe there are too many factors to answer the question).
Anyway, I would appreciate the opportunity to connect with you.
Thank you,
Robert
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