All Forum Posts by: Melissa Hartvigsen

Hi @Jeff S.,

I am in Beaverton and will send you a PM with some local window contractors.  Several of my clients have used them.

Cheers,

Melissa

Hello @Tyler Woolums,

In most states the real estate purchase contract says the home is "sold in as in condition". Even though that clause exists it has become standard practice for buyers and their agents to use the inspection to re-negotiate terms (ask for repairs or a price reduction). 

In Oregon where I practice real estate, if a buyer and seller agree upon repairs, then the buyer has a right to re-inspect and confirm the repairs were actually completed.  It is standard to request the work be done by a licensed contractor. If the repairs are not done the buyer and seller can agree to extend the contract, and give the seller a change to repair again, or the buyer can terminate. In Oregon if the buyer didn't re-inspect and took the seller's word, then they don't really have any recourse. 

Usually for claims that arise after closing, the recourse for items costing under $10,000 is to go to small claims court. There you would likely have to pay $200 - $300 for filing fees, and it isn't a grantee that you will win your claim for money.  I would suspect that repairing the leak and patching the drywall is less than $1,000, and not worth your time to pursue in court.

Melissa

Hi @Jordan Bradberry,

Since this is off topic I replied to you directly. Thanks!

Hello @Ashley Barlow

Moving forward, I recommend that you set up the Airbnb account in your name. If you opt to hire a property manager (PM), add the PM as a co-host. Airbnb let's you as the primary host restrict what permissions the co-host has. That way you will always have control over your account. If you decide to change PMs in the future, you can just de-active them as a co-host, and can keep your listing and reviews.

Good luck to you!
Melissa

Hello @Ben Brown,

I strongly advise against getting a student loan to use as down payment for a house. Student loans are the only type of debt that you cannot get out of, except by repaying them. Should you run into financial problems in the future you cannot claim bankruptcy on a student loan. Also, if you decide to take out the student loan for your down payment anyway, this will count in your debt ratio and will reduce your buying power.

There are other ways to buy a house with little or no money down.
1. Save for the down payment on your own.

2. Ask family for gift money.

3. Partner with someone.

4. Connect with local lenders in your area to see if you qualify for a first-time home buyer incentive.  This may come in the form of a grant (money you don't pay back), a loan that does not require a down payment (USDA if you buy in a rural area), a second mortgage with no interest and payments unless you sell or refinance.

There is no such thing as free money, and the programs have up front fees, but if that gets you the down payment you need much faster than your rate of savings it is worth considering.

Good luck, and I hope you get your first house hack going soon!
Melissa

Hello @Billy Knox,

All realtor commissions are negotiable, and it is most common for the seller to pay both the listing agent and buyer's agent. The seller has the right to say they are only offering a commission to the agent selling their house. 

I am a realtor in the Portland Oregon market.  Generally speaking the seller is in a better financial position to pay the agents due to equity in their home. In my entire career, only only two seller clients had to bring money to closing. I remember one of them had some unforeseen circumstances and was 2 years behind on mortgage payments. If they had been current on their mortgage, then they would not have had to bring money to closing.

Most of my past buyer clients were first time home buyers who could only afford to put 5% or less down.  If buyers will be required to pay their agents directly, I think this will reduce access to home ownership for many first time home buyers.  Seasoned home buyers who not purchasing their first home would still be in the market.

What do you think?

Melissa

Hello @Rachel House,

Go UMass, my husband is an alum! :)  I practice real estate on the west coast, but think my advice will still be relevant for you.  

Host open houses for other agents' listings at your office, this is a great place to meet both potential sellers and buyers. It does not require money.  Most open houses are held on the weekends, so it will be an ideal match for when you are available.

It takes some practice to talk to prospective clients, and get their contact information. Is there is a senior agent in your office who is a rock star at getting leads through open houses? If so, ask if you can shadow an open house or two before starting off on your own. That way you don't have to learn by trial and error.

If you are going to be too busy to complete the transaction once you have secured a client, you should partner with another agent from your office and share the commission. That way you can lean on their expertise, and their availability while you are in class.

Best wishes for success!
Melissa

Introducing "Landlording Your Way to Retirement" - Join me as I share my real estate investment journey and teach you how to do it. Set yourself up for success!

Imagine a life where your passive income grows steadily, allowing you to enjoy the fruits of your labor without financial worries. This event is designed to help you replicate my path and build your own real estate portfolio.

Refreshments provided, please RSVP via the EventBrite link: https://www.eventbrite.com/e/landlording-your-way-to-retirement-tickets-

Hello @Kalyan Kondapally, 

Connecting with other investors: A great place to start connecting with other local investors is here on Bigger Pockets, and by attending the local NW REIA events; some events are free so you can check them out before you pay to join. I recommend visiting the Investor Round Table and the Investors Forum. They are held regularly, so if you miss it this month you can go next month. You can see the calendar of events here: https://www.northwestreia.com/events

A note on financing: Multifamily units with 4 or fewer properties are treated differently from a lending perspective than 5 units and above. 4 or fewer are considered "residential" by lenders can use traditional financing (i.e. 30 year repayment terms, and down payments at 25% for multi-units for investors, or 15% on a single family home). 5 or more units is considered "commercial" by lenders and the loan terms are shorter with higher down payment requirements. 

Where to find multi family properties: Occasionally you will see some multifamily units listed on the MLS, so those will also show up on Redfin, Realtor.com, and Zillow. For properties 5 units and above, these often trade off market. The larger commercial brokers usually offer listings to existing clients first. Then, if no one in the existing client pool is looking to acquire a property, it may get posted on Loopnet.

An alternative: If you have trouble locating someone to partner with, or come up with such a large down payment, you may want to consider building your portfolio by house hacking. I did that, and currently live in Beaverton.  I started with a single condo, and ended up moving 5 times in 7 years. Later, I did two 1031 exchanges to use my equity and trade up from condos acquire more units.

The "hack" is you can put less money down than an investor (can be as little as 3%) and get better interest rates.  It does not mean that you cash flow right away.  You have to commit to living in the property for at least a year before renting it out in its entirety, though you can have roommates to help offset your mortgage payments while you live in the property.  Another benefit to house hacking is that you may be eligible for home buyer incentives, investors do not get this option. In Beaverton there is a $25,000 down payment assistance program for current residents. Send me a PM if you are interested in learning more about the down payment assistance and I can connect you with a lender who offers it.

Good luck and best wishes for your investment journey!
Melissa

Hi Dustin Le,

Kurt Lane @ Chroma PM is correct that House Bill 2001 affects the late rent notices and terminations.

As a somewhat new landlord without a lot of experience, I must stress the importance of making sure you do this correctly. At this point, if you have not already been in contact with an attorney, you should be. At the very least if you don't hire an attorney, consider hiring a property manager familiar with all of the Portland rules to help you navigate this.

The gist of the new bill is extending COVID protections around evictions. It requires notification of tenant rights for seeking rental assistance, and if your rental property has financing then the termination date must be 30 days after service of the 30-datermination notice for non-payment of rent (if you own your property free and clear, you can use the 10-day termination form).

These should only be used if the tenants are behind on the current month's rent. If they owe more than a single month's rent, you should have an attorney help you draft a 30-day termination notice to cover all amounts due.

Additionally in the City of Portland requires you to serve a completed PHB Rental History Form and ledger with all termination notices of any kind. https://www.portland.gov/phb/rental-services/documents/form-3001087f-rental-history/download

I also use the forms from Multifamily NW like Kurt recommended. You can read this article about HB 2001 at the Oregon State Bar:

https://www.osbar.org/public/legalinfo/landlordtenant.html

On that page, you can open the link to the full enrolled text of the bill.

Best regards,
Melissa