All Forum Posts by: Jake Alger

Hi @Dylan Petersen,

I second what @Dave Skow has to say about making sure your earnest money is protected.  If you've asked for repairs and they've countered to something that is unsatisfactory to your liking, you have the right to terminate the agreement.  If you're working with a real estate agent currently, they should know the procedure and be advising you of your options.

In terms of asking sellers to break up properties, you certainly have the right to do so.  Every deal is different and they may have Title ties which would need to be broken up.  Reaching out to the sellers or the agent representing them (if it's on market) would be how it's handled.  A compelling story for a request to break up the properties would need to be made and the financing / terms of an offer would need to be just as compelling.

Working with an investor friendly real estate agent is definitely a plus and not every agent is investor friendly.  It's a completely different mindset from selling normal residential real estate.  It's all about numbers.

Hi @Damian P.,

The Fairwood area is somewhere that's stayed rather steady throughout this market plateau we're currently seeing.  Prices are still at a point where the majority of people can still afford but inventory is again limited after the bump in June, especially at certain price points.  

I agree with @Dave Skow, don't use FHA if you can help it. The only way to get PMI off the loan is through a refinance, and who knows where interest rates will be when you're ready to refi -- plus, there's the added cost of the refi. If you qualify for a conventional loan, most banks will allow for BPO's after a 2 year minimum "seasoning" period, in which you'd be able to potentially drop the PMI at a small fee for a reconsideration of value (should you reach the LTV ratio required).

I also agree with @Jeff Dzado, the "simple and easy route" is not something that works right now.  Looking for a "house hack" of some sort by forcing appreciation is a good strategy.  I actually own a home in Fairwood and it's been a great investment through forced appreciation over a relatively short period of time.  One thing to note about the area, depending on your strategy and target demographic for renters later, is that if you're on the East side of 140th, you'll be in the Kent School District.  If you're on the West of 140th (Fairwood West/Cascade), you will be in the Renton SD.  For some, this makes a difference and moves their search more south into Kent proper depending on their price point and strategy.

Feel free to reach out with any questions.

Hi @Amia Padero,

That's exciting you're finishing up your RE courses!  Almost time for the big exam :)

I like what @Jenifer Salter had to say about jumping in full time and not having an "out".  It definitely makes you push harder to find and close deals.  It's far too easy to get complacent in this business, so if I have any single advice to offer, it's always be looking for the next deal, even when you're busy, busy, busy.

Finding a firm that provides training, tools and systems is a must.  Also, somewhere that has a great culture and top producers who are open to sitting down for coffee, answering questions and providing guidance would be something I'd look for.  Simply ask them (or any agent for that matter), what they wish they knew their first year in Real Estate.  You'll get varying answers but it'll allow you to be proactive and grow faster!

I'm happy to share my experience should you like to hear it!

Hi @Robbie Williams,

Welcome to BP!  It's definitely a great place to network, learn and bounce ideas off of like-minded people!

Congrats on the success thus far in real estate!  I second what @Joel Thompson mentioned about Spokane.  The east side of the state has been booming and becoming far more active with people relocating from out of the area.  They also have the new Amazon distribution center that's been being built just before Airway Heights.  This should bring a decent influx of jobs to the area in a city that's continuing to grow.

I like that you're looking out of state and trying to position yourself for the long-term.  One word of advice I'd have is perhaps trying to stay close to your investments.  If you're just starting out with rentals, it's a good idea to keep your eye on the property, even if it means just doing a drive by the property.  Knowing what's going on and being proactive with certain items can save you a headache later.  Also, being attentive to issues that may arise from your tenants are far easier to manage when you're close by, or at least within the same state.

The Spokane rental market has been strong and continues to grow.  With the cost of living being much lower than the west side of the state, you should have many opportunities for building and growing long term wealth.  Some investors I know from the west side are moving money that way, for this exact reason -- rentability.

Hi Scott,

Congratulations on passing your WA Real Estate exam!  That's a big step in the right direction if you're looking to get your feet wet with a RE career!

Since you're newer to Real Estate, I would recommend looking into a brokerage that is going to provide you the training and tools necessary to help you become successful.  Not everyone just hits the ground running and most get discouraged with how difficult the industry can be.  If the plan is to transition into a full-time agent at some point in the future, having the support of staff, other agents, and trainings around you may be the way to go.

I'll send you a PM :)

Hi Tyler,

A 5-6% cap rate in Tacoma is typical.  Even then, agents tend to base their numbers off of pro-forma's, so make sure you do some due diligence.  Depending on your strategy, budget and what you're looking to accomplish (house hack for monthly payment assistance, etc.), you may need to adjust your search area.  Have you been looking for 6 months and not finding something that fits your objectives or are the properties selling too quickly?

What kind of criteria are you looking for in terms of returns?

Happy to help in any way I can :)

Hi Elaine,

It can definitely be a daunting task analyzing properties, especially if you're new to the process. Having a feel for the numbers is something many investors rely on and usually comes from years of experience. When practicing, don't worry so much about becoming accurate with the numbers, be more concerned with learning the process and calculations. The ARV will perhaps be the easiest and closest thing to which you'll have data for. Look at what's selling around the property you're analyzing. Find similar properties (what we call comps or comparables) based on square footage, lot size, bedrooms, bathrooms, age, etc. and use those as your ARV.

Networking within a group is great, but ultimately the numbers you're analyzing will come from experience and will be situational (every deal is different).  Perhaps reaching out to an investor who's "been there, done that," or looking at other deals people post in the forums would be of some help as well.  You'll be able to see "averages" for some of the costs such closing costs, etc.

I know you're new to the process, but when the time comes, an investor friendly real estate agent will also provide services in helping identify properties that'll work for your strategy, risk tolerance and level of experience.

I'm happy to help in any way I can with questions.  Feel free to reach out.

Hi @Niki Sharan,

Welcome to BP! It's a great place to ask questions and find out information on different markets. What types of returns are you looking for?  Have you set some criteria or utilized the BP calculators to analyze any deals?

In our market (Seattle, Puget Sound region), some deals can be found but the returns aren't always feasible for everyone.  Some form of appreciation tends to be calculated in for longer-term, buy and hold investors. I'm happy to be a resource if you have any questions :)

Hi @Chris Blume,

Welcome to BP! This is definitely the place to network, learn from and teach other like minded individuals.  The market has definitely seen a little bit of a shift in our region but investments are still fully attainable, especially within the realm of rehabbing properties.  The key as I've always said is to move quick when a deal shows up.  They don't last long as there's plenty of cash out there waiting to get in the game.  My advice would be to make sure you have a great network of individuals who are reliable and can get things done quickly.  Time can be less of your friend and more of an enemy in this industry :)

Hi Si,

That was a listing of mine a month or two ago. We sold it to an investor who is rehabbing the property currently.