All Forum Posts by: Mathew Wray

That’s great Shane! Congrats on working towards your license...it’ll help your investment for sure. PM me and I’ll give you some thoughts on brokerages. 

Hey Steven,

Welcome to Bigger Pockets. You’re smart to reach out and introduce yourself. I like what you speak to in your profile-humble, servant leadership and taking care of your people: that’s the name of the game! 

If I can be of assistance, let me know!

Mathew

Hey Shane,

I think you’ll find it hard to get a loan from anyone as a first-time investor who is owner-occupying. If you did find someone to loan you the difference, my guess is the rate would be exorbitant and the lender probably wouldn’t fund the loan if you’re borrowing part of the down payment.  I could be wrong (and if I am, please tell me who is funding those deals so I can talk with them.) 

But, you don’t need to be discouraged. You’re totally on the right path. I’d focus on getting into a duplex (and there are some in that price range,) getting roommates, building equity through improvements, and continuing to sock away cash. With rents where they are, you’ll be living rent free if you rent one side and have a roommate or two. You’ll need to set aside some cash each month to account for capex, vacancy, and repairs, but at your savings rate you’ll continue to increase your reserve. A year will fly by, and you’ll be ready to move up. 

That’s my .02 

Hey Carolina, 

I'll echo what Jacob said! Your plan sounds reasonable to me, depending on your organization and skill set. Given your background, I'm sure you're operating at a pretty high level organizationally so multi-tasking different wealth-generating avenues shouldn't be too much more to take on :)

I think if you're going to drive for dollars then you need to find a way to provide value to the home owner. They've probably been bombarded by debt collectors, realtors, wholesalers, etc., and are just tired of it on top of everything else they're dealing with during a difficult time in their lives. If you can find a way to help them see the light at the end of the tunnel, another way out, or have something unique, then I think you can be successful.

Two thoughts jump out at me after reading your outline:

1. You've got a great background and, I'm assuming, a pretty wide network of contacts. Once you get your feet wet, you can probably lean on them. 

2. I'd be leery of the beach for a vacation rental. It seems like every time I open a newspaper there's another article about cities at the coast pushing back on vacation rentals. It may be the same at the mountain (I'm a realtor and just started looking for a vacation rental property for a client near mt. hood, which is why it's top of mind) but I'm certainly not seeing it in the same volume. Prices also are cheaper, and rents are close to what you get at the beach. 

Welcome to BP...If I can be of any assistance, feel free to reach out. 

Mathew

Hi Shaimon,

I have earthquake insurance on one of my properties that is older (and my most valuable one) but not on any of the others that are newer. I suppose you could call it a calculated risk in not covering newer properties. It can’t hurt to have and it’s not super spendy-off the top of my head, it’s less than $1,000/year. 

Realistically, I’d say your odds of the Portland city council or the State making a regulation that destroys the value of your property is more likely than an earthquake destroying your property, at least in the near term. Anyone know of “city council” insurance? :)

Good morning ShaneX2!

Shane Short, you're off to a great start! I'm an agent here in Portland and I bought my first couple rentals using FHA and VA low-down loans. It's a good strategy to get going. I'd save your time going to random banks (unless you have an "in" or referral.) send me a PM and I'll give you the names of lenders I've personnaly used who will help make your loan process a breeze!

Shane M., although I'm not in the Kansas area, maybe I can provide some general guidance? Good on your friend for continual movement and growth towards his goal! Other options exist for low-down loans, although FHA backed loans are the most common-he may just have to keep at it until he finds a buyer who doesn't mind the loan. It'll take longer, but is doable. If he's having trouble with an agent, let me know and I'll get him a couple recommendations. In the meantime, check USDA Rural loans, depending on where in the KC, MO area he's looking the properties may qualify. If that's not an option is he a veteran, first responder, or teacher? There are specialty programs for those professions. Cities sometimes partner with non-profits to provide grants to certain areas or people but those are going to require local knowledge. Have him PM or call me and I can make a couple recommendations for folks on the ground to help him out.

Best of luck to both of you! 

Hey Jordan, I asked around some friends and found two options for you. I haven't personally used either one, but they come highly recommended. Shoot me a PM and I'll send them your way. 

Best of luck on your build!

Hey Tony, sorry I didn’t catch this when you first posted. 

I think you’re 100% on the right track, from doing research and asking questions, to your savings and your employer (working for a design/build firm and having PM experience is bound to be helpful!) 

I started my real estate career with a 203K loan as well and think it can be a great way to get going. As for areas to invest, Portland (as I’m sure you’re finding) can be a mixed bag by the numbers but there are some other advantages that are here. 

Shoot me a message and I’ll connect you with some lenders I’ve used who have experience with 203K loans.

Full disclosure, I’m a licensed broker in Oregon...need to update my profile today!!! 

Thanks,

Mathew

Hey Lemuel, happy to hear from another vet! Shoot me a message and I'll introduce you to a couple lenders I've used here in Portland for my VA loans.

Tigard and close in SW are probably out for SFR in that price range. My wife and I were beat out on multiple offers in that range. We were offering 15-20% over list price with non-refundable earnest money and still not being accepted. It's truly a buyer's market. I do agree that Milwaukie along the max line may provide a better chance of success. And the max line runs into Portland near PSU. Best of luck, it really is a cool city with tons to offer!!