All Forum Posts by: Jake Alger

Hi David,

There’s nothing to worry about when purchasing a property that would prohibit you from renting it out. The key here is to make sure you plan to occupy the property yourself, even if for a short period of time. This would put you in the realm of an “owner occupied property.” Mentioning anything to a lender in terms of using it as an investment can trigger them to be leery of the loan and require a larger down payment. (Investment properties require larger down payments unless you plan to house hack. They also generally have higher interest rates.) I’d be happy to connect and chat about your strategy and see if I may be of any help. 

Hi Anisha,

Choosing a closing date is completely up to your buyer.  Typically I write 21-30 day closes but have had cash offers close in as little as 3 days.  Be careful with the short closing times, sometimes escrow can't get Title or the payoffs (if there's a loan on the property) quick enough.  If offering a quick close, make sure your ducks are in a row :)

- Jake

Thanks Jon - It's been an absolute pleasure working with you.  We aren't finished just yet!  I'll be sure to get you recommendations as well :)

Hi @Marquita Brown,

I'm a buyers agent from the Bellevue area and also do transactions in other parts of the state.  I'd be happy to discuss your needs and provide a referral if necessary.  I'll send you a PM.

- Jake

Hi Vivian,

Without the full picture, it's hard to gauge what the strategy is here.  What capital gains would she be looking to avoid?  Having a capital gains liability would entail she has sold some form of property or investment.

Investing in rentals is a great idea for someone who is looking to build a portfolio or have passive income.  It can create generational wealth or retirement income through other people's money.  Seattle has been a very hot market the last few years which has allowed anyone owning rentals prior to that period to realize large appreciation gains.  Now, some of those same investors are trying to decide what their next course of action is (leverage and buy more, etc.).

I would refer your friend to a tax expert and a Financial Advisor who can better understand her scenario and provide recommendations.  Both stocks and real estate are speculative plays, with arguments to be made on both sides as to which is safer or provides more of a return.  Ultimately she needs to be well versed in what her options are and how they play into her risk tolerance and investment strategies.

I'd be happy to discuss Seattle Real Estate with you/her.  For the tax and income questions she needs to seek a CPA and Financial Advisor.  I'd also be happy to provide some recommendations to people who would be able to help.

- Jake

Hi @Jason Woods,

One thing is for sure, we've definitely seen a slow down this summer but that's not unusual.  IMO what happens at the tail end of summer and early fall (so about now) is where we'll learn what the market will provide in the short-term.  With interest rates rising, it wouldn't surprise me to see the slow down continue.  I'm in the same boat as you, I think if anything, we will have more of a plateau in the market with slower growth in the next few years than the past.

I know of a few local investors who have recently sold part of their portfolios because of this situation and the lack of solid guidance for the future.  They didn't want to hold multiple *newer* properties into a possible slowing or stale market.  However, they 1031 exchanged into other properties, both local and in other states, similar to what @Mike B. mentioned in his response.  In one case, the goal was to AirBnB and in another, to "trade up."  In both cases, each also have properties listed on the market which were flips and are taking longer to sell than expected.  Thus, they are also playing the tax game given the extension deadline coming up in a few weeks.

There are a few options but they really depend on your overall strategy and risk tolerance.

Hey Nick,

I'm a fan of Real Estate Express.  I've used them before for my license and continuing education.  Prices are reasonable and I believe they may be running a sale right now.  Check them out :)

- Jake

Hi Louis,

I’m a broker in the Seattle area and know it can be tough to decide on renting vs buying. Each point you’ve listed is valid for both sides of the rent vs buy argument. 

It’s true, the value in our market is in the land and given that there has been much higher demand than supply the last few years, prices have gone crazy. It’s been a tamer and mellower market this summer with houses staying on the market longer, but is really a function of price point. You still have some homes selling rediculously fast, but far less. We’ll see soon if that continues to be the case.

Rents have doubled in the last 5 years and will likely remain high. Rent prices in some areas are still affordable but they can have their drawbacks. It would be important to find a neighborhood that fits your lifestyle and needs to see if renting is viable for you. 

I’d be more than happy to connect with you and discuss your needs. I’ll send you a PM and perhaps we can chat further. 

- Jake

Jeremy,

I think in a few weeks to a month we will have a better grasp on where the market is headed. It’s been significantly slow for most people this summer, starting around late May / early June. On the flip side I’ve been more busy than usual, which is a good thing. Where’s your flip in Bellevue located? Curious, I’m a local broker. 

- Jake

Hi Daniel,

I’m an investor friendly broker in the Seattle area and would be more than happy to chat with you. I’ll send you a PM.

- Jake