All Forum Posts by: Ryland Taniguchi

In California, do you have to be licensed to run a self-directed solo 401(k) group? It was specifically mentioned in the Oregon DFR about needing to be licensed for self-directed IRA, which I took to mean you have to be licensed to run a group like that.

I wouldn't buy in California right now until after the next crash. Just studying the markets and entering with a solo 401(k) group. I would probably bring my marketing machine systems that I have running in Seattle and start by wholesaling while I learn a new market. I like the Silicon Valley and Santa Monica because there is a ton of money sitting around looking for lower risk yield.

 I still occasionally see con artist people still doing this rent-back scams with people in pre-foreclosure. So the laws only pushed the ethical law-abiding citizens out.

There are tons of deals here in Seattle but the deals are in urban development like high density Seattle modern 3-story townhomes or things that require you have a massive marketing machine. There are no flips where you can consistently get 60%+ IRR using 15% downpayment with hard money. If the permits didn't take so long, you could probably get the returns flipping in Tacoma. But why flip when you can get 65% to 75% IRR on the BRRRR strategy.

Development is too complicated for newbie investors and so there are deals because the opportunities are sitting right under people's noses but they don't see it.

For Washington state, I would focus on BRRRR for buy and hold investors in this hot seller's market. Cap rates have already compressed anything on the MLS or the auctions.

You always expect the market to drop back down because market crashes are the only guarantee in real estate. But you don't sit out... You must take a diversified approach to real estate and keep 70% of you investments market crash free and go for higher returns 60%+ if you do anything that has market risk and no more than a 1/3 of your portfolio. 

Get used to bubble markets. The US government cannot afford to pay 20% interest on $18 trillion (interest payment of $3.6 trillion would exceed all sales revenues from taxes). Expect interest rates to be low indefinitely until this country jumps off the cliff in hyperinflation. Artificial bubbles and increasing housing prices will keep happening and then massive asset bubble pops.

 I was looking at PDX because I was planning to start a solo 401(k) group there. It was already a downer that you have to be licensed to sell notes and I am now changing my mind completely on the PDX move after looking at that link at http://dfr.oregon.gov/gethelp/protect-finances/Pag...

Will go to Silicon Valley instead next to get a group going.

Yes but the problem with these liberal laws is the law-abiding citizens follow the laws. And the people who don't care about the laws nor acting in the best interests of the seller either don't care about these laws or don't know about them.

In my lovely area of Seattle, the city council and the entire state government here are socialists. I live in the People's Republic of Seattle. The liberal government here believes that it is evil to make a profit.

1) Labor and Industries is a bullying mafia machine. According to my attorney, they are going after rehabbers this year. LNI believes that investors have a pile of cash and they believe you should hand over your money. With the amount of harassment and bullying that goes on, it amazes me that someone has not sued them yet and  go personally after the assets of a harassing LNI inspector. I recorded a conversation where an LNI inspector was basically putting down our subcontractor because they were African American. We will never have affordable housing in Seattle because LNI increases the cost by 40%. Oh that's right, LNI is hard to sue because they are represented by the Attorney General.

2) AirBNB. The city of Seattle wants to restrict what you can Airbnb.

3) Rent Control. The next move will be rent control in Seattle on commercial apartments.

4) Equity Skimming. They don't believe you should make a profit as an investor so they restrict it so you cannot buy that good of a deal without violating the Distressed Home Consultant Law.

5) SEC Blue Sky laws. You have to file a Reg D rule 506(c) to borrow money from a private lender who is not in the normal business of lending. A little overboard?

6) Planning Departments. Seattle is okay here. But we keep hearing rumors that planning departments like Tacoma are so busy and they are blaming the investors. I have heard a rumor that they are purposely sabotaging investor permits so the investors go away. I am not so sure these are true but I have heard this more than once.

Interestingly, the government here wants to blame investor for causing the crash. Ironically, we will keep having real estate crashes because OF the government. As long as we run the printing press through qualitative easing, we will continually be going through real estate bubbles.

The sad thing is that these liberal policies make the rich richer. So while you do everything to try to bring the investor down, the reality Washington State is that you are making us wealthier. Keep restricting the supply of properties through your liberal laws and I will keep watching my properties go up in value. Supply and demand. 

I have traveled the over 58 countries and Seattle is the most beautiful place on the planet. So I do love living here in Seattle. I've also run a business in the socialistic country of Australia and we here in Seattle are making some strides towards socialism. 

Wow sounds just like Washington state. I think the liberal governments in Washington and Oregon believe it's evil for anyone to make a profit. I was looking to set-up a SDIRA group in Portland but this is reason enough to pass. Lol I don't know if either states remembers an old document called the Constitution like state governments not interfering in private contracts.

This is a great insightful discussion. I am planning to study this Portland market inside and out, wait till the market crashes, and then come in with a bunch of cash to go bargain shopping.

What areas around Portland saw more than 40% drop in prices during 2008?

Do they have a stupid equity skimming law like they do in Washington where they make it a crime to get to good of a deal? I can't tell you how many great deals I find up in Washington where we have to offer a JV in addition to what the seller would sell it to us for.

What does it cost for a full gut out rehab (roofing, siding, electrical, hvac, plumbing, etc) in Portland?

What areas around Portland are being rezoned for higher density? Are suggested areas for BRRRR within an hour from Portland?

Have fun getting in this game. Bigger pockets is super valuable. I am an experienced investor up in Seattle for the last 16 years and have been soaking up all this information on the Portland/Vancouver market. Kind of exciting diving into a new market and feels sorta like being brand new all over again.