Archive for How to invest in real estate Portland

Investor/Realtor Joins Us to Teach Free “How to Buy Portland Houses for Sale” Webinar

PRESS RELEASE

Portland, OR — veteran local investor/realtor joins investor/mentor to share their battle-proven strategies and tactics to beat competitive bids and tap into cheap, unlimited investment property financing to buy Portland houses for sale in free webinar October 3rd.

As both investors and primary home buyers in the market are already aware and the RMLS Market Action for August 2012 reports, housing inventories are shrinking. With the same demand directed at fewer properties, that means increased competition and frustration for retail and wholesale buyers.

Full-time investor John Sheldon continues to succeed in this changing environment, regularly completing real estate investment transactions that generate mid five-figure to six-figure payouts. But even he admits that the market has grown more difficult.

“When you’ve got investors and buyers bidding on the same Portland houses for sale in a low-inventory, low-value market, that means investors work harder for less profit,” Sheldon explains. “That’s why I wanted to find someone who really understands the Portland market and has a history of successfully winning in multiple-offer situations to present to my investor group How to Invest in Real Estate Portland.

“Tracey Branche has that experience. I’m excited to have her join me and share her tricks of the trade. Attendees to this free webinar are going to get a real leg up on the competition.”

Tracey Branche is a real estate broker with Oregon First and recipient of the Five Star Real Estate Agent award for 2011 & 2012. In addition to being a licensed realtor for over 10 years, she has been investing in real estate for 14 years and is currently on the board of the Portland chapter of the Real Estate Invesors Association.

In addition to Branche, Sheldon will also be sharing the results of a recent successful transaction of his. “I’m going to pull back the curtain on a deal I just completed,” reports Sheldon. “Attendees are going to learn how to use creative seller financing the way I did, to open the doors to all the cheap funding and arbitrage income they could ever want.”

“They’re also going to get an inside look at how they can actually quick-turn Portland houses for sale and still collect monthly paychecks from those properties for years after they’ve sold them.”

Webinar Details:

“How to Top Competitive Bids & Tap Infinite Funds”
Wednesday, October 3rd, 7pm – 8pm
Price: Free
Register for this and all upcoming free webinars at
http://HowToInvestPDX.com/signup

John Sheldon may be reached at the offices of How to Invest in Real Estate Portland by mail at 8925 SW Beaverton Hillsdale Hwy Suite E, Portland, OR 97225, by phone at (503)539-9094 or through the website.

Real Estate Investment Group- Portland’s Four P’s-Press Release

While foreclosures may still be on the rise, savvy investors are joining forces with a local real estate investment group. Portland, Oregon’s increased demand for rental properties is proving to be a stable source of passive residual income with consistent gains for experienced real estate investors. Portland is attracting vigilant investors who are ready to capitalize on the current foreclosure market, as forecasts indicate that HARP 2.0 may soon trigger a decrease in foreclosures.

Obama’s recent announcement of the revised HARP 2.0 (Home Affordable Refinance Program), provides Fannie Mae and Freddie Mac loan holders the ability to refinance regardless of the property value or the homeowners’ credit scores. This is expected to help 5 million homeowners and properties nationwide. Investors are preparing to buy foreclosures now, while inventory continues to offer significant discounts.

People looking to secure their financial futures are joining forces with a professional real estate investment group. Portland investors are wisely leveraging this group’s experience and networking connections. As the current foreclosure market continues to offer deeply discounted gems, many advise that now is the perfect time to invest. The soaring increase in rental demand and sharp decrease in time remaining on the market practically ensures immediate residual income for stable long term gains. For this reason property investment veterans are calling Portland the “Passive Property Portfolio Pearl”.

While we cannot know for sure what the future of the real estate market will bring with regards to HARP 2.0 impacting foreclosure inventory in the near future. We can agree that neither a crystal ball nor tarot cards are needed to predict that this current market will create financial stability and fortunes for savvy investors.

Experienced investors and realtors agree that the current foreclosure inventory and interest rates make this market the best vehicle for property investing. Those looking for guidance, instruction and training can participate in seminars conducted by a local real estate investment group. Portland’s professional team of real estate trainers and instructors can be reached at (503)539-9094 or online by visiting www.howtoinvestinrealestateportland.com

Portland Rental Properties – Wednesday Update 1/25/2012

Portland Rental Properties Apartment : High resolution image interior. 3d illustration modern interior.In this edition, we’ll examine the tax benefits for rental properties, the ease and time required to manage your rentals, and the ever increasing demand for rental properties in Portland. Additionally, we will learn about Portland’s plans for water, how you can save a lot money with free banking and lastly the Trail Blazers’ winning streak.

New IRS regulations impact owners of rental, investment properties
portland rental propertieswww.trulia.com1/25/12
If you own rental property, or any other business or investment property, the Internal Revenue Service has bad news for you. It has issued a massive new set of regulations (256 pages in all) with complex rules that, starting in

How I Spend Only 30 Minutes A Month On My Rental Properties and
www.yourfinancessimplified.com1/23/12
They say that real estate is one of the best investments you can make. I say investing in rental properties is one of the best investments you can make.

Population density creates demand for rental properties in Portland, Beaverton, and Clackamas
Portland’s urban growth boundary is going to cause real estate values to continue to appreciate over time. Dennis Gorton, a real estate agent in Portland, Oregon, says that real estate prices in Portland are directly related to population density. Th…

State health authorities delay decision on Portland’s water-treatment waiver – OregonLive.com
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OregonLive.comState health authorities delay decision on Portland’s water-treatment waiverOregonLive.comThe Oregon Health Authority won’t issue a final decision this month on Portland’s request to skip building a treatment plant in the Bull Run water …

Money vault: Free checking at banks and credit unions in Oregon – OregonLive.com
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OregonLive.comMoney vault: Free checking at banks and credit unions in OregonOregonLive.comPortland-based Umpqua Bank last year stopped offering the first box of checks for free. The Umpqua Holdings Corp. unit also ended a $90 credit toward checks on …

Portland Trail Blazers (11-7) at Golden State Warriors (5-11), 10:30 pm (ET) – MiamiHerald.com
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Maddux Sports (blog)Portland Trail Blazers (11-7) at Golden State Warriors (5-11), 10:30 pm (ET)MiamiHerald.comBy Sports Network The Portland Trail Blazers will shoot for their third win in as many nights when they pay a visit to the Golden State War …

As the growing demand for rental properties continues to increase, this market proves to be the ideal to invest in Portland rental properties. In order to learn how to invest in real estate is it important to work with dedicated and honest  professionals. For quality assessment call (503)539-9094 or visit http://howtoinvestinrealestateportland.com.

Portland Property Management- Making Intelligent Decisions

One of the safest places to live in the United States is Portland. Property management companies in Portland are experiencing an increase in the number of investors who are looking for portfolio diversification. Property management companies are able to offer stable and passive returns. Many national and international investors are choosing Portland for real estate investment.

Beautiful house under Portland property management

Having a property management company will save you a lot of time. These professionals can tackle the time consuming chores involved in property maintenance. Property managers handle much more than just the tenant screening process. They address preventative maintenance, scheduled maintenance, inspections and renovations. More importantly, they respond to emergencies which require immediate action. Due to their established networks, they can easily find quality affordable professionals to handle your property’s plumbing, electric, gardening, carpentry, drywall and heating needs just to name a few. Their experience will save you many headaches, as they will know how to best accommodate your tenants while saving you time, stress, and money.

In order to be successful as an investor, finding the right property management company is key. Many real estate agents looking to compensate their incomes will gladly offer to help you find a property and rent it out. Be advised that many real estate agents are only knowledgeable in terms of RESPA (Real Estate Sales Procedures Act); this is great when you are buying or selling a property, but you really need a knowledgeable and experienced professional whose main focus is property management. Experienced property managers understand and comply with legislation, such as the Americans with Disabilities Act and the Federal Fair Housing Amendment Act, as well as the Oregon Fair Housing Laws. They will be sure that the renting and advertising practices are not discriminatory and that the property itself complies with all of the local, State, and Federal regulations and building codes. Professional property managers will know the Landlord Tenant Laws, especially when dealing with evictions, non-payment of rent or harassment.  

Portland Property Management Woman Portrait PhotoIt is highly advisable that you interview various property management companies in order to determine their experience, history and knowledge. Not all property management companies are created equal, and as such, your true investment success will be determined by the professional that you hire.  When looking for a Portland property management firm, it is wise to to check that the company is licensed and registered with the state of Oregon. You can visit www.oregon.gov to verify that  the professional you are engaging is a licensed property manager. If your property manager is not an active licensee, he or she is operating illegally and you are not receiving the benefit of having the Oregon Real Estate Commission oversight. This extra step will provide you piece of mind. A registered property manager has undergone background examinations, drug testing, continuing education requirements, licensing examination requirements and has professional liability insurance.  

Why exactly does professional liability insurance matter? Statistics show that since 2002 the number of lawsuits in the real estate arena have escalated significantly. The biggest increase and largest claim type was directly related to property management. There may be times in which property managers may be involved in litigation with tenants or contractors. Thus, insurance coverage will protect the property manager from frivolous law suits while insuring peace of mind for both of you.  

Some property management companies even offer online owner portals. This allows you to have the leases, management contracts, financial reports, paid invoice copies, inspection reports and even inspection videos accessible online without having to contact the property manager. When you have the right property management professional working for you, your investment will work on autopilot.

Here is a list of questions that you should ask Portland Property Management firms

How many properties does the manager have under management?
How does the property manager handle repairs?
What kind of insurance coverage does the property manager have?
What is the company’s  Better Business Bureau rating?
Is the property manager a member of the National Association of Residential Property Managers (NARPM)?
Does the property manager accept electronic rent payment?
Does the property manager pay owners by direct deposit?
Does the property manager offer an online owner portal?

The National Association of Residential Property Managers (NARPM) is also a great source to help you find Portland Property Management firms.

Portland Property Management

Deal Analysis: Profit Lessons from a Traffic Light

Deal Analysis: Profit Lessons from a Traffic Light

Deal Analysis Can Protect Profits

The biggest mistake I see novice investors make in Portland is that they do not do proper deal analysis, including profit planning and exit strategy assessment. That’s jargon for saying they take deals where there’s not enough money, or there’s no safety net in case their one way of getting out of the property goes sideways.

In my free video “Seven Biggest Mistakes in Portland Real Estate Investing” I go over a number of the different exit strategies.  I’m not going to add substantially to that now, but here is a quick list of property and exit strategies:

  • Property Strategies
    • Do nothing (sell “as is”)
    • Quick cosmetic improvements (“rehab”)
    • Major cosmetic and material improvements (“remodel”)
    • Reconfigure for additional bedrooms, bathrooms, or units to increase sale value or NOI (“net operating income”)
    • Raze improvements to the ground
    • Raze and rebuild on existing foundation (still considered in most jurisdictions to be a remodel)
    • Raze and rebuild entirely new
    • Subdivide lot into two or more legal lots
  • Exit Strategies (for land or land/improvements combination)
    • Sell retail through realtor
    • Sell retail FSBO (“For sale by owner”)
    • Sell wholetail (discount from retail value)
    • Sell wholesale (deep discount to allow for rehab or remodel costs and resale)
    • Sell on contract
    • Lease option (“Rent to own”)
    • Rent/lease

You can mix and match property and exit strategies to come up with an almost endless variety of ways to get out of a deal profitably. We consider dozens of scenarios in our weekly webinars.

What we’ll focus on here and now is a simple way to make sure you’re paying attention to effective deal analysis. It’s called the traffic light strategy.

I did not invent this, but I have used a version of it in my own investing for years. It’s a pretty simple system and it works just like a traffic light:

GREEN – You have at least THREE exit strategies that will all pay you your minimum five-figure paycheck. (By the way, YOUR minimum five-figure paycheck could be anywhere from $10,000 to $99,000. I personally recommend that my students and partners NOT use $10K as their figure.) GO! GO! GO!

YELLOW – You have TWO exit strategies that will pay your minimum paycheck. Proceed with caution.

RED – You have ONE exit strategy that will pay your minimum paycheck. DO NOT PROCEED.

If you keep this simple formula in mind, it will be very difficult for you to lose money on a deal. If you combine this with the other strategies you’ll learn on this site, in your emails, and in our membership club, you’ll be practically bulletproof. Won’t that be nice for a good night’s sleep? Do your proper deal analysis, make sure you’ve got multiple exit strategies take action, and prosper.

Deal Analysis: Profit Lessons from a Traffic Light

Hard Money Headaches: Why and how to avoid it in real estate investing

Hard Money Headaches

Hard Money Headaches

First, let me be clear: hard money is not a bad thing.

If you can do a deal that makes you a five-figure check, do it. If you have to pay someone 18% or 24% interest on the money that closes the deal, do it. You’re getting your check, let them get theirs, too.

That being said, hard money is NOT the way to build a long-term real estate investing business.

I want to talk to you today about three ways to avoid hard money and its expenses and deadlines. You’ll also discover a little-used way to actually leverage knowledge of hard money to actually put more money in your pocket, better food on the table, and greater peace in your mind.

First, a quick review of hard money. I really don’t know why it’s called “hard” money, but this is what it is: money lent – often by an individual – to a real estate investor for a high interest rate and a short period of time, secured by real estate. Interest rate is typically in the 18% to 24% range. Term is anywhere from a few days to several months. The loan is usually secured by a first position trust deed or mortgage on the property you want to acquire. Wikipedia goes into a more extensive definition of hard money here.

The upside of hard money is that it can often be acquired very quickly – sometimes as little as a few hours. Also, it does not depend on your own credit. This means if you find a deal and are strapped for cash or just don’t want to spend your own money, you can still get the deal done.

But there are other, better ways to finance a real estate transaction.

Three Ways to Do Deals without Hard Money

  • Private investors
  • Partners
  • Credit partners

Today we’re going to talk about the first three.

Private Investors

Private investors are often people with more money than time, who like the strong returns and secured loans available with solid real estate investments. Although some hold the money in cash, more often they will have their funds in retirement vehicles or stock portfolios.

Because they’re not active and experienced investors as most hard money lenders are, they’re willing to take a significantly lower interest rate, usually between 10% and 15%, with the most common being 12%. Because their money is often tied up and takes time to be available, they don’t typically have the same speed of availability as hard money.

Partners

A partner takes an active part in the deal, whether that be money, effort or both. They take a share in the risk and the benefit. Meaning that if the deal goes down, their money or effort goes down with it. But if the deal does what it should or better, they get a percentage up to the very last penny.

The downside is that a partner can take the largest share of all, up to 50%, or more if they’re the lead. The upside is that they may bring skills, resources, or experience that make the deal possible. And it’s always better to have a smaller five-figure check than none at all. 😉

Credit Partners

Like a “regular” partner,  a credit partner is ann active participant in the deal and provides funding. However, unlike the partner mentioned above, a credit partner is not briging her own cash to the transaction, but is instead bringing her excellent credit, which then allows the project to get regular bank financing.

The upsides are the same as with a partner bringing cash; you get the deal done. The additional downside of using a credit partner is that your project will now need to meet more stringent and less flexible bank requirements in order to get funded.

Bonus

I know I said we’d talk about three, but you really can’t miss out on the most exciting funding option of all – seller financing. In this case the person or persons selling you the property offer to let you pay off the balance of the purchase over time. They basically loan you the money to buy their property.

Why is this exciting?

Two words: flexibility and motivation. Let’s clarify this by looking at the mainstream option – the bank.

If you deposit money into a bank, their goal is to pay you the least money (“interest”) possible, take your money (“deposit”) and make as much as they can with it. If you borrow money from a bank, you’re on the end where they want to make the most money possible, meaning they want to charge you the highest interest they can. And as bankers tend to be highly risk-averse, rigid, and emotionally detached from the success of your deal, they are not going to go out of their way to help you make the deal work.

Your seller is the exact opposite. They’re often far more interested in what the future has to hold for them than they are in making every last dollar from the deal. They’re used to eking out 0% to 2% interest on their deposits in the bank, so getting paid 3% to 6% by you is an absolute windfall. And they are motivated to get out of that property and on to the next chapter in their life, so they will typically be far more accepting of flexible terms. It’s good for your seller, it’s good for you. Win/win.

Why to Always Plan to Purchase with Hard Money

This is where you prepare for the downside, and it can mean not just security, but even increased profits. You can see why and how I do this in my free video. You can get access to here, to the left of this post on the top of this page or by visiting How to Invest in Real Estate Portland.

The bottom line is that if you always think and plan like you’re using hard money, but find the very best funding option you can, you will always give yourself the very best chance of making a five-figure paycheck, taking care of your family, and having enough left over to enjoy a quality lifestyle. Now, go take action and prosper.