All Forum Posts by: Alessandra Verbena

I thought I had seen it all until now. People scrambling in desperation to buy a home. Any "home" here on the Central Coast near San Jose and Silicon Valley. Even if it is a mobile home in a leased park, it is going over asking. I am referring to Santa Cruz proper, where any home is now $1M and above. Because of this, people are now moving on to offering cash for condos that are under a million with high HOAs and the offers come in well over asking, thereby pricing in future appreciation. I fully understand the issues with the Fed's monetary policy and the real concerns about inflation, but this market seems to be running on emotions instead of any type of sound financial decision making. I personally don't see this real estate price action as sustainable in the short term. Wages don't and aren't keeping up with the rapid pace of inflation and there are going to be fewer and fewer buyers with the salary to purchase, for example, a $1M condo with a $600 HOA. Because of this, I see the potential for a correction on the horizon. However, at the same time, I see that desirable areas surrounding large metro areas like San Francisco and Silicon Valley/San Jose are becoming fully "metropolized" thanks to remote work and the pandemic. And even with the emigration out of Silicon Valley, the prices in those markets seem to be holding steady. Is anyone else seeing what I am seeing? Open and curious as to anyone's thoughts on this.

Does anyone know what are some popular cities to live on the Oregon Coast? 

@Jeff S. Thanks for the insight. I heard the rent control law caps annual rent increases to 9.5% similar to California's rent control laws. I am also considering Washington County - Hillsboro and Beaverton.

@BradHammond This is very helpful information. Thank you. I appreciate the hard numbers on vacancies too. Do you know what areas are desirable right now for rentals? Looking to buy.

It seems like the conversation always starts with... Will the real estate market crash in 2020? Or, will it crash in the Bay Area? Or will housing prices dip in California? I would like to pose the question from a different angle: What are the numerous factors that can lead to an overall decline in real estate market? I think this could help people gauge the factors that precede a dip and how many of those boxes are checked at any given point in time.

Please name as many as you can. For example, we know that interest rates are one, what are some others?

Also, I would like to pull the knowledge from long-term investors who have memory of previous declines in real estate that were as marked or less marked than 2008, so we don't just rehash the most memorable real estate dip in recent history.

Thanks in advance.

Hi BP community,

I would like to know what is the latest in PDX. Are people migrating out of Portland? Rental market? Vacancies? Jobs?

Any input would be appreciated!

Hi All,

I could really use your expertise to help me with my checklist for establishing a partnership with an out of state investor.

We have an exciting opportunity on the table to rehab a single-family, do a cash out refinance, and hold long-term as a rental property. I will be partnering with an experienced real estate investor who found the deal and will be the "boots-on-the-ground," overseeing the rehab and has the property management contacts. My role is that I will be putting down all the cash to purchase the home and that will be used to rehab the house. We already have an estimate of repairs and will order an appraisal.

We have never met in person and he is (young) and experienced (50+ doors) in 50-50 OPM (other people's money) partnerships. I have checked some references he provided including the property manager he works with. I am running a background check per the smart advice of a real estate investing webinar I watched when COVID first hit and he shared with me a draft of an LLC operating agreement that he used with another investor. I reached out to a real estate attorney to review and put the operating agreement together.

My first question, is there any legal repercussions for simply forming the LLC with or without the real estate attorney's help? I will obviously have the real estate attorney review our OA and was planning to have him help with the formation of the LLC, but I don't know if there are any reasons to have the attorney be the one to do it. He claims that we can simply start the LLC for $100 online and that it isn't necessary to have the attorney involved on that end of things. Is this true?

My second question and the part I am most confused about is the handling of money and bank accounts. I have the money in a personal online savings account, so I will need to transfer the money to the title company to purchase the house in cash, I am assuming. But does this money need to come out of a business account? Does the business account need to be named after the LLC? Does it need to be a joint account with the partner or can it be separate? If these are too many questions or if this sounds too naive, can you please direct me to a resource, i.e. book, article, or forum, that can educate me on the transaction side of things? He explained that we will need to establish a business banking account to funnel the rental income and I believe also the cash out when we refinance.

Any support is greatly appreciated! I have read about BRRRR's in the Brandon Turner Rental Property Investing book but it doesn't go into detail on partnerships and the transaction side of things.

Thank you!

@kathy henley can you share typical hourly rates?

@Joseph High I am interested in commercial and multifamily. Thanks!

Hello,

Can someone recommend investors/realty investment companies/realtors in the Nashville area? If you are kind enough to recommend someone, can you share why and what their expertise is if possible?

Thank you!