All Forum Posts by: Nikolas Engel

@Cody L.Thank you for your response, good to have some context to your deal. 

Quick follow up questions:

- You mentioned that you do not like touring properties. How do you safeguard against any negative surprises in due diligence or did you buy it without any contingencies? I am not sure I would have the confidence to skip that part entirely. 

- How long did you negotiate? With the owner directly or through a broker? Was there a moment when things could have gone sideways?  If so, what was the solution/compromise?

Thanks again for sharing! 

@Cody L.Congratulations! Remarkable solo run! 

Would you mind sharing some details? 

- What was the hardest part for you as a solo investor to close on the deal and how did you overcome that challenge? 

- What is your business model with the property? I assume you aim for a refinance in a few years - what needs to happen until then? What are the biggest risk until refinance and how to you try to mitigate them?

- What fact of the property did make you feel confident to buy it? How did you overcome your competitors (if any)? And how do you plan/project the coming months in terms of occupancy, income, expenses etc. 

Thanks again for sharing!

Hey everybody,

on 12 August PDX City Council adopted the Residential Infill Project, a massive re-zoning exercise for Portland. It opens up Portland's residential heighborhoods to housing types other than SFRs and more ADUs or DADUs on plots with existing SFRs. The adoption of the Residential Infill Project must now be acknowledged by the State and implementation is expected in 2021.

https://www.portland.gov/bps/rip/news/2020/8/12/portland-city-council-adopts-residential-infill-project

Obviously this is a big deal. Rezoning allows for more units, either through converting a SFR into a -plex and/or add ADU or DADU on the land. Lot sizes now become more important since you can actually do something with the land. It looks to me like a step in the right direction, a try to mitigate the pressure on the housing market in Portland. At the same time, it opens up opportunities for investment while being a tool to provide affordable living in the city. Potentially a lot of winners in this, no?

BUT - I have to admit - I have no clarity about the scale of change so far. Is this only happening on a few selected blocks in the city? Or are changes applied throughout Portland? Removal of 'a' overlay zones seems to be widespread, whereas proposals for change from R5 to R2.5 seems more spotty. 

Anybody got clarity on upcoming changes or thoughts in general on the Infill Project?

Thank you and best wishes, 

Nikolas

I stay away from those percentage rules. I look at the complete picture, make the calculation and if the result works for me I make an offer. Only solid cash flow matters to me. There is more than one way to make money from a property - so even if it does not look good at first sight, I always think about ways to make it profitable. 

@Odie Ayaga, thank you for sharing your thoughts. Have you done that in the past? What kind of reactions did you encounter when approaching a private lender (seller financing) with the idea to substitute the collateral?

@Derek Dombeck, thank you for explaining the process to me. In the end, nothing would change for the note holder except that another property has become the collateral. However you (the seller) would have a lot more cash from the sale on hand to invest. So if I understand correct it is great tool to use the velocity of money, right?

@Michael Ablan - thank you, this makes sense. Is that common practice in your experience? It sounds like win-win: Bank gets a higher valued property as collateral and you keep the low interest rate plus all the dough from the sell. 

Hello all,

I am wondering if anybody has used an auction to sell a property you had under control? Couldn't it be a quick and cost effective way to turn the property over to a new buyer? What are your experiences and thoughts?

Thanks for sharing and happy investing!

Nik

Hello all,

is the transfer of mortgage to a new property a tool in your financing tool box? What are your thoughts and experiences on walking the mortgage? I just read about it and would like to understand more, especially how and when it is done, and pros and cons from your investing experience.

Thank you all very much! 

Nik

Thank you for putting the minutes online. I appreciate the effort.