All Forum Posts by: Richard Sherman

@Walter Ellis I would start talking to local credit unions and local banks as well as a local broker who SPECIALIZES in commercial loans.  It is probably too small to do a agency loan but maybe not.

 Absolutely agree.  I was explaining this to a couple of local investors regarding some of the regulations they are passing in Oregon.  Regulation will put downward pressure on supply which will exacerbate the housing "crisis" in Portland Metro which will mean less competition and higher long term rents.  Some (current tenants who are lucky enough to get some of the benefits) will be paid for by higher costs long term for renters.  Bring it on, I am much more worried about a 200 unit apartment building coming in down the street than  only being able to raise rents 7% + CPI per year.

@Jay Hinrichs 100% agree...these rates have pushed us to buy a bit more than I was comfortable with, but there cost of acquisition and cost of ownership (which includes the drag from financing) and though the deal was OK on the buy, the financing makes it a winner.  

@Joshua D Enos always be thinking about how to get properties and the nice thing with living in one as a primary then making it a rental is you have VERY advantageous loan products for owner-occupied.  There are so many different ways to approach it.  

@Joshua D Enos I totally get it, everyone has a varying ability to do that strategy based on their life circumstances. BUT! use that same thought process. Maybe it isn't a 4 plex, maybe it is 2 houses on one lot, or 3, or a home with an in-law cottage that can be rented (maybe short term rental.) Always be thinking of other ways to drive income. The other thought is to do the same thing with a SFH. Buy one that would make a good rental, live there a couple of years (live in flip etc) and then keep it and buy another. It doesn't have to be that exact thing, but keep your options open and figure out if you can find win-win properties that check multiple boxes.

@Jay Hinrichs Always love your commentary Jay.  I think you are right about the hurdles that are artificially preventing some building.  Rates are still very low by historic measure, but lending in some areas, like spec is tough.  

Unfortunately I think that real estate will perform in a very similar way to how the stock market has...many people are still flinching from 2008-2009 and they have missed most or all of the run up...just when they capitulate to the FOMO and go back into the market is when we will start seeing a crest.

This is a great reason for everyone to consider the time risk elements to their strategy..i.e. are you buying the right property in the right market but are married to a timeline (flip, wholesale etc) that could take a profitable buy and hold deal and turn it into a money loser if the market flattens or drops?

@Anatole Doak your best bet is local and regional banks and local credit unions.  I would start there for small balance loans like this.

@Account Closed if you include it you would include its market value as raw land minus the amount owed on it.

@Lisa Sims I would do a deal analysis sheet and post it here for comments (dont post the address etc of the deal.) Use the calculators on BP or your own etc

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