All Forum Posts by: John Barrett

@Nilakshi Fernando Finding a CPA wouldn't be the 1st thing I would do regarding getting started in real estate. I would start by networking with brokers, lenders, agents and other investors in the market you would like to invest. I see a lot of people get hung up on business entities and LLC's when in reality you are most likely not going to need that structure until later or possibly at all.

First find the deal and get your finances / financing in order. If you plan to hold the property in your personal name or an LLC will impact the financing options available. Determine if you really need an LLC starting out or if you can manage the risk via an umbrella policy.

John

@Phyllis Ferrell congratulations on starting this new journey.  It's not the most popular advice but getting your personal finances in order and saving your money (living on less than you make) will enable your success as an investor.  Take advantage of the free opportunities to learn and network (WAREI - Facebook group) and RHAWA or Meetup have a number of events you can attend.  This will allow you to see what other are doing (successes and failures) to determine what areas you would like to focus on. It's tougher now given the high property prices and higher interest rates but there are still opportunities.

All the best,

John 

@Tim Cornwell I appreciate your optimism with the passage of this legislation but I'll be honest I am very skeptical this will have much if any real impact on the housing shortage in WA.  The WA State legislature has passed numerous regulations in the last 5 years that discourage / depress housing supply in WA.  They ultimately passed the very worst form of governmental interference in the market (rent control) in this latest legislative session.

The combined effect of all the legislative interference in the housing market in WA will be lower supply of housing, reduced investment in housing and ultimately lower quality, higher cost rentals for renters in our state.  Combined with higher interest rates and material costs and I don't think it will be long until everyone sees the fallout from these policy errors.  We only have to look at what's happened in OR from 2023 to see how this will play out.

John

@Shweta San I think it would be really good to understand your goal with offering seller financing on your condo. Unless there is a compelling reason that a potential buyer would need seller financing to close this transaction, I think you would be better off selling it conventionally and moving on to your next investment.

John

@Devon Smith I use Rob Renfro with Coastline Home Inspections.  He has inspected a number of properties (both single and multifamily) for us. While I have and do use other inspectors, he is normally my first call.

Best of luck,

John

@Daniel Budnik I would start by looking for a house hack. Rather than looking to start with a multifamily, you could look at a regular house (more options and at potentially lower price points) and then get roommates.  This will also allow you to get the best possible financing and lower down payment options.

If you are able to do some work to fix up the property that would allow you to grow the equity.  At that point then you could look to trade up.

Best of luck.

John

@Audrey Sommer I think you can still get cash flow investing in Snohomish County. The challenge is the that you need to have a plan for the property that will allow you to improve rent collection, lower expenses or build the equity. Rent growth has been flat over the last year so you need to account for flat rents near term. That said, investing in real estate is primarily a get rich slowly endeavor. If you are able to follow this path over time you will do great.

John

@Audrey Sommer I prefer investing in my local market (Snohomish County). I think the economy has a number of diverse employment options, lower prices than King County while still being within driving distance.  I know a lot of investors have done very well in Peirce County but I just haven't learned or know enough about that market to make an investment there.

Washington state properties are expensive and can be difficult to make breakeven let alone cash flow at this moment due to the combination of high prices and interest rates.  That said, the appreciation has been very high over the years.  No guarantee this will continue but I see elected officials making policy mistakes that will lead to less development and that makes me believe constrained supply will continue to drive above average appreciation.

John

@Salvador Diaz look up WAREI on Facebook as it's a pretty active group.  There are also a number of landlord groups for Snohomish, King and Peirce counties.  I haven't seen much on Meetup for a bit but there are a number of local meetups pretty regularly.  The real determining factor is what area of investing is interesting to you and matches with your skills and talents.

John

@Grayson Chao look up WAREI on Facebook as that is a big active group of local investors and a number of meetups get advertised there.  You can still find some events on RHAWA website and meetup.com but it's a lot smaller number.

As for getting started, remember it's possible to be successful with many different strategies. I would just ask lots of questions and determine your advantages (time, money, knowledge, etc.) before deciding on an investment strategy.  

John