All Forum Posts by: Phillip Pommier

Peter, I am relatively new in PDX area although did a couple of deals in FL before focusing here.  I'm interested in wholesaling too but also in fix and flips.  I'm interested in how you find your deals.

P.

Michael:

I'm not sure I understand the question.  Also, I'm not sure I can give you the name of the company(ies) that does the auctions as I believe it is against BP policy to give names in this forum. (Correct me if I'm wrong.)  Make a colleague request of me and I will give you the names of two companies that cater directly to real estate investor auctions.

Regarding the auctions, you bid against other investors for a single property.  You need to do your own due diligence.  Often these are occupied properties so you can't get into them.  And depending on the company, you have very little time to prepare a bid.

Neil:

In my experience auctions are very competitive here.  I have participated in several auctions in this area.  One, late last year, was a USDA property in Vancouver that went $20k over my limit.  One, maybe two years ago you wouldn't find other bidders at a USDA auction.  Now there are half a dozen that do this full time.  

I've also bid at tax deed sales in Cowlitz County, WA.  In that case there was a room full of bidders.

In addition, I've participated in several auctions through a local real estate agent in Washington and Multnomah Counties.  This real estate agent is geared for trustee sales and caters to investors.  You need to be careful because sheriff sales in Oregon have a 6 month (I believe) right of redemption.  Often you can purchase the right of redemption but you never know.  And, buying though a realtor requires paying a commission.

After working auctions for about 6 months my own marketing efforts started showing promise.  Now my preference is to generate my own leads and perform my own negotiations with sellers.  This is not to say that you shouldn't do auctions. Its just my feeling that generating your own leads is the lowest cost option in our market.  And part of the problem in our market is high prices due to the competition.

I would not cover a property that I was holding to flip or fix and flip.  But for the house you live in, or the house you rent, I would.

I did a study for our HOA last year. You need to look at maps prepared by the Oregon Department of Geology and Mineral Industries (DOGAMI). The map:

(http://www.oregongeology.org/sub/hazvu/index.htm) 

shows the worst places and best places to be in Oregon in the event of an earthquake. DOGAMI describes the coming earthquake in the Pacific Northwest as life changing.  There will be so much infrastructure damage that you won't be able to travel around the area due to bridges wiped out.  Check out:

http://www.opb.org/news/widget/aftershock-find-you...

This means it will be next to impossible to bring in the equipment necessary to begin rescue and recovery efforts and materials.  It will take years to recover.  If you are interested I'll send you a copy our report.  While it is specific to our condominium association most of the information provided is relevant to this area.

Needless to say, in my study for the HOA, I recommended that we carry earthquake insurance. Careful study is also suggested regarding your homeowners insurance. You want to make sure that the coverage from one extends to the other, that you are not double covered and that there are no gaps. At best there is a 10% deductible for earthquake insurance. You should use an independent insurance agent to review and recommend appropriate policies.

Hope this helps.

Neil:  I am using Nancy Shropshire of Mal and Seitz in Portland.  Nancy focuses on west-side properties.  They have other realtors that focus on east-side.  They don't focus on short sales or foreclosures but focus on investor properties.  I know three other realtors who specialize in investor properties, one of which will do short sales but doesn't focus on them.

In my experience its hard to find a deal that pencils with a realtor commission involved.  I also find that the PDX market is very competitive, so that huge profits on a single deal are pretty hard to find. I, myself, do direct mail, Craigslist and website advertising.  I find leads pretty routinely.  I'd love to find a partner as I am short on cash and hard money costs too much.  If interested you can get my contact information from BP. 

Are you talking splitting the lot in two?  Or just building a duplex on the lot.  I would be concerned regarding the time to partition plat.  Seems like a builder would be a good buyer since there are so few lots available.  Theoretically, they are also used to the partition plat process.  Seems like your market is smaller, but perhaps hungrier for a well priced lot.  Also, I'd like to see other new construction on the block or nearby.  I'd like input from @Omid A.

I agree with both the above reviewers.  Incorporate their comments and you will be better off.  The point about everyone getting too many letters is most important.  In Portland many people are getting half a dozen of these letters a week.  Shorter, more to the point.

Also, consider talking to a title company about getting lists from them.  They are free and my experience with a local title company is that the lists are cleaner.  I have fewer returned letters, but still as much as 5%.

Finally, I've heard you need to send more than 1000 letters out before you can gage the response rate.  I've tried cards, invitation style and letters and am getting the best response with letters.

Good luck!

Hey Mason, you should contact Robert Laird.  He's on BP.

Cody:

I'm looking for the same things in the PDX area and Bend as well.  Right now I'm looking at a over/under duplex built in 1930 in Beaverton.  Needs probably $100k in rehab.  Let me know if you are interested.

James:

Rain City and Veristone are two locals that I'm hooked up with.  Both seem very easy to work with.  Depending on the deal you are going after one may be easier than the other.  If you haven't found anything yet contact me with details about the deal you are trying to do.

P.