All Forum Posts by: Isaac Frost

Does anyone have a great source for got rate, low closing costs on a cash out refi for a rental property in Portland??  

So I just went through underwriting for a refi on a rental property my wife and I own.  I'm reviewing the final loan docs and I'm concerned that we're' not getting the best deal we could be.

Here's what I'm being quoted:

Appraised value - $608k

Current loan balance - $158k

New Mortgage - $400k

Closing Costs - $15k

Rate: 4.25% at 30 year fixed

Cash After Closing - $227k

Credit Score - 805

I was expecting a rate in the 3.5-4% range and the closing costs seem very high.  Are there better options out there?  I don't want to mention the bank that I got the quote from but it's a smaller regional bank that has the same name as a really great local ice cream company : )

@Paul Washington  The funny thing about the work books they give you for the 3 day class is that they never once mentioned the course material or even asked you open the workbook in front of you for the ENTIRE class. 

We are disputing the charge right now and are hoping to get our money back. 

@Adam Pierce That's a great idea.  I'll give it a shot.  Did you have to spend a lot of time dealing with the dispute personally or did the bank handle most of it?

Originally posted by @Grace Widdicombe:

Just thought I'd share a coincidence that happened on Day 2 of that Rich Dad "seminar". I just happened to have the banquet room next door with a Northwest REIA seminar on Marketing Your REI business on the web. A one day class teaching social marketing and web marketing - how to.

As the class was going on, I was outside in the hall and two men walked by looking into my class, saying "what's going on in there? - That looks a lot more educational than what we're getting. I say we go to that class instead."  They went outside, came back to me and asked about it. 

I told them about REIA, and they said they had no idea REIA existed. They were completely upset about the bull crap being pushed in the Rich Dad seminar, which I understood completely. I asked "has the speaker started shedding tears yet?" and admitted that I spent $18k at my Rich Dad experience years ago, which was a complete waste of money, except for it made me commit to my dream. ...

They went back to the Rich Dad, came back out with a 3rd person and said they each got their $300 investment back!  They were so proud of themselves.

I gave them my advise: Check out Northwest REIA where the education is free. - They said they will.
and go to BiggerPockets.com and start listening today to the podcasts.  - They said they will!

I didn't purposely poach. However, if I'd realized from the beginning that they were in the building I would have put our banner up! I truly believe in our REIA and in BP.

 Yeah I almost walked out with those guys. I should have. They are the ones that stood up and called BS to these guys. Loved it.

I already have spent some time here on BP prior to going to this event and met some great people in town as a result. 

Just another reason to not throw money at these supposed "Gurus". 

I'm wondering what local bank or community credit unions other RE investors are using in Portland Oregon.

I currently have all my personal and business accounts a large national bank (Wells Fargo).  I'm looking to for a relationship with a small local bank or credit union forr several reasons.

1. Keep more money in my community

2. Develop a more personal relationship with the the people I work with on a regular basis

WF will have a different business banker assigned to my company every year or less and it's very annoying to have so much money running through a bank and deal with people that treat you like a stranger or don't want to deposit a check because my customer left "LLC" off the back of my name.

I looked at Umpqua Bank as I've heard good things, but they currently have over 300 location on the west coast and look to be growing even faster.  I'm worried I will end up in the same situation.

So what are your favorites and why?

Thank you!

@Manolo D. Well since this thread is about small multi-family, let's say an appropriate lot to build a 2-4 plex? I personally would NOT build a 4 plex on 100 acres in Portland. I would build a neighborhood.  A big one : )

What what are people paying for land these days in Portland that has good zoning and headroom to develop?  If I see anything on the East side for under $250k I'm shocked.  I don't know as much for the West side.  

@Jay Hinrichs You got it right ; )

Yes, my investor/partner took half the proceeds. So If I had a HML 12% I would have only ended up with 34% of the gross profit. Which still would have been fine. I may go that route in the future. If I can prove a consistent track record of making money on similar deals, I'm hoping my services will be of interest to more investors. Time will tell.

Originally posted by @Joe Kooner:

Awesome job! Congrats!

But, I'm sure you learned more from this flip than any other deal. In the future, would you rather focus on working ON the business rather than IN? (Project oversee vs. doing the work yourself)

Or do you enjoy being involved in the actual work? Just curious. Once again, that return is awesome!

 Joe,

Great point you have.  I'm in the process of transitioning to the 'Working On' my business phase.  I started as a carpenter in college, them became a PM for larger contractor, then started my own company three years ago.  We have gone from just me and my partner doing all the work and estimating to having 5 employees.  It's a marathon not a race.

Since I'm a full time general contractor, I do feel the need to do a little work myself at times.  I also firmly believe that to be a great contractor you have understand all the aspects of the building process in order to teach others to do it properly.  It also shows a good team mentality when I take off my nice shirt, grab my tool bags out of the truck (the tool bags are ALWAYS in the truck) and jump in the trenches with my team. 

I'm in the FIR (Field Issued Remodel) program in Portland. That's what Jay Hinrichs was referring to. We can start projects as soon as we turn plans in while waiting on review in most but not all cases. It's fantastic. I don't even have to step foot in the building department office, which is a rat maze in our town. This is for remodel only. For new homes there may be some similar program that I'm not aware of.