All Forum Posts by: Tyler Combs

@Brent Markham Short term HML does not usually come with. Pre-payment penalty. They usually charge enough points up front to ensure they are well paid for the time. Some of them have an option to extend the loan at maturity for another round of points.

@Vince Scolari There is very low liability to you as the seller of the LLC, and that buyer's attorney can draft up an indemnity doc that should be able to protect him from unforeseen judgements in the LLC.

@Carlos G. Yeah, "cash out" comes with additional restrictions on the LTV, especially when it is in an LLC. I recently cash out refied at 70%, but had to out it in my own name and get a conventional loan. Last year, I was able to do a cash out refi, but again, it had to be in my name. I recently to talked to my lender and said they finally had a product that would allow LLCs, but I know the rate was higher than other conventional offerings.

@Beverly Bowman You're never to old to start pursuing real estate investing! I know people who started later in life than you that have a great portfolio today. The important thing is that you evaluate your goals for what you want your real estate to do for you, and then adjust your criteria and approach to align with those goals.

We've definitely seen a shift in the market over the winter, and with it all of us have been adapting and tweaking marketing and acquisition strategies.   I'm giving a talk in a couple weeks on the most effective strategies that are working for investors in Portland recently, and would love to hear what is working for others on here.  As I gather responses from outside of BP, I'll post what I discover here.

@Scott Smith,@Jay Hinrichs,@Caleb Heimsoth What do you think is the break even point for taking a closer look at more complicated asset protection strategies?  I've always been a proponent of the advice: "Don't spend money to protect assets you don't have yet.",  so I just stuck my holdings in separate llcs originating in whatever state I own them in.  When is it worth restructuring with a more sophisticated (and costly) protection structure?

I agree with @Chris Shepard's numbers. $150-$200. We're building a plex in the back yard of an existing SFR, and those back of the napkin numbers are in line with our experience. Bids are the way to go though, before releasing your contingencies!

I'm seeing 80% LTV as most common. I've been able to pull everything out of most of them.

No, I think we'll continue to see a slowdown in appreciation of rents, but demand is still keeping pace with supply.  We're seeing builders give concessions as the struggle to reach their proforma goals, but I think we're looking at stabilization in the near future, not decline.

 That's a really good point about the effects of the approach the city has taken.   It has increased the liability exposure for self-managing landlords to a point where most probably should hire a professional property manager that stays up on the law changes.  By doing that though, you often end up cutting your net income in half.  Many have chosen to hire a PM or sell. The irony is that it was these self-managing landlords that were privately subsidizing rents and providing a significant amount of affordable housing.  

Zach, where did you end up investing for semi-passive income?

Yes that can be scary, but you can still get projects pushed through at Portland BDS, and landlords and investors can still make great money here.  The Oregon State legislature actually is proposing a bill that will put rent control in place in a much more restrained and reasonable measure than what City of Portland wants to implement.  In my opinion, the Senate's proposal is reassuring because it will reign Portland in and stop what has seemed to many like an unrelenting war against landlord's rights.  

While you can definitely find better rates of return in the short term in other markets, I'm a big fan of the steady inbound migration, appreciation and stability that Portland proper has to offer.