Most of what I read in this and other forums applies to other parts of the country.
I live and am starting my investment business here in the Seattle, WA area. Where we have a strong economy and employment base, a high home ownership rate, very low foreclosure rates compared to the rest of the country and where prices haven’t fallen off more than a percentage point or two (heck, condos and townhouses are still rising!). Unless you’re prepared to put 50% down, you can’t get the rent to cover your expenses. Even the experienced investors I talk to are going into negative cash flow situations and don’t plan to break into the positive for 3-5 years. Flipping, wholesaling and the other strategies that don’t involve long term rental situations are practically non-existent.
Unless I’m not talking to the right people or just haven’t aren’t getting around enough to hear about the opportunities. I just started out and have one property which I’m renting and planning to hold for the long haul. And feeding $300 a month out of pocket until I can raise rents and/or refi to eventually get to a positive position. I want to do more but I’m not going to do any more deals unless I can make money from the git-go.
Would love to hear from others in this area who are making deals and making money. And from anyone who might have ideas on how to make money in this market which seems to be the exception to the national trends.
I wrote out how I make money with real estate in Bend, Oregon not too long ago. If there is a search feature on this site I don’t see it. But it was the last post in a thread that was something like How to find cash flow and started out with a complaint about investing in Bend.
I live in the Kent Washington area and I have to say that you are wrong P_fud.
Whosailing is happening here right under your nose. It all starts out with your marketing, that is the main factor. What are you doing to let everyone know what you are doing? Whosailing requires establishing a buyers list. Go to the REAPS or REIA meetings and ask investors what are they looking for, copy there names down
and start establishing a buyers list, (Do that first when you are going to wholesail) Call a bunch of "We buy houses ads and ask what kind of houses they had in mind, also ask do they buy contracts. Now you have your buyers list start looking for properties that fit that criteria…How? By setting up your marketing around the houses that is in your buyers list. In wholesailing you are basically a middleman who puts buyers and sellers together. Find those houses that are in your target range in the buyers list (Price, condition, location, etc) Get the property under contract and then have the “And or assigns” clause in the contract, (Before you start make sure you have a RE lawyer review your contracts first) and then sell the contract to your buyers list. Make sure your buyers list is deep because if someone doesn’t want the property you have a 2nd, 3rd, and 4th option.
Hope this helps!!
Thanks tatertot - you’re exactly the kind of response I was hoping for. I’m in Everett, and most of my information has come from RE agents, mortgage brokers, etc. I’m realizing that I need to get out there and talk to investors, not these (hopefully) well meaning RE professionals who stand to profit by taking the ‘conventional’ paths (banks, 30 yr fixed & so on) - and who have tried hard to sway me away from strategies like wholesaling, adopting more creative financing methods, etc. I figured there had to be things going on that I just wasn’t seeing given my limited perspective.
Thanks for the input.