Herb's Portland Oregon Real Estate Blog your RE/MAX Agent

 Are you getting all of the business you want from the Internet? According to the National Association of Realtor's (R) in a recent article Recent_Field_Guide_Article_written_by_Russell_Carlson :

• 80% of Home Buyer's used the Internet as a source
• 81% of Internet Home Buyer's also used a real estate agent
• 74% of Buyer's who searched online drove by or looked at a home they first saw online

This is Huge. For all those that feel they can still do business the old way and say that they just do not get along with computers these stats and this story should be the hand writing on the wall for you.

I receive notifications daily from  my_Buyer's_Web_Site_&_MLS_Portal  of the new people (typically Buyer's) who have signed up, like Peter and Jessie. I waited a couple of days like normal before sending off an email welcoming Peter and Jessie offering them a few upgrades to the system if they chose to have them. I did not receive a reply back which is pretty typical of today's Internet user who prefers to remain anonymous until it suits them.

A scant week or so later while enjoying a family barbecue at my daughter's home I received an excited phone call from Jessie. She started by first saying " You don't know me but my Husband and I are signed up on your web site www.househuntportland.com  where we have been receiving daily emails of listings. For the past week we have driven by all of these homes ( House Hunt Portland sends them the address as well ) and this one really looks cute. Is it possible you could show us the house?"

I excused my self from the Barbecue and set out for the vacant home. The home was cute but a little over priced for its size and area. After talking over their needs I told them I would tweak_their_search_parameters  on the House Hunt Portland system so as to more accurately reflect their needs.  I also set the frequency of listings to be sent and received to ASAP as they were anxious to buy. House Hunt Portland will send new matches within 20 minutes or so of them being entered into the MLS by the listing agent.

A few days later I once again answered a call from Jessie. She had been working on the computer when a new email_alert_from_House_Hunt_Portland  came in. It was 7:30PM. I could tell from the excitement in her voice as she described the listing to me that this house was of a great deal of interest. As I reviewed the listing online from my computer we came to the same conclusion, this property would not last long and that they should act quickly.

By 9:00pm we had previewed this charming home and were sitting down in front of my_Laptop_Computer  at the University_Park_Coffee_house_in_North_Portland . I called the listing agent and emailed him the offer straight out.

By The following morning it was good news all around. The seller had reviewed and signed the offer. Later that day the listing agent called to ask about the scheduling of the home inspection. He also informed me that he had already received a back up offer and that several other parties, disappointed that it had gone pending already, had made the comment that they had been looking for a house like this in  the_Overlook_neighborhood_of_Portland for months. This is an area that I work regularly and knew this to be true. 

I just smiled to myself knowing that once again House_Hunt_Portland had paid off putting my Buyer's first and in a great position to take full advantage of the best of the best in new listings on the market.

It was a true pleasure to help and watch as Peter and Jessie purchased their very first home. And as a testament to their joy they also referred Ken and Michelle to me whom also used my MLS_Home_Finders_Tool  House Hunt Portland to help identify the home in which they purchased.

The Inernet truly is a fabulous tool and resource. It can and will help you to reap real rewards if you embrace the technology and don't bury your head in the sand.

What does it take to recognize and take action on a good deal. I have worked with Investors of Real Estate most of My  career which started in 1988.

This past 12 months or so has seen a lot of negative press in as far as the real estate market goes. Based on the press reports one might presume that this was as far from being a golden time to buy as you could imagine. After all it is all Doom_and_Gloom  Right?

Yet Investor's_seem_to_look_at_Real_Estate  just a little bit different. It is after all one of the single greatest investment vehicles that common people and professionals can and do employ here in the good old USA. Especially if you pay attention like Chris does.

My long term client Chris, is a modest man of simple needs and over the years he has made some pretty sound buys. Honestly he could be doing a lot better but is a bit afraid of putting himself in harms way when it comes to his bank account. To say he is frugal would be a vast understatement. Yet several times a year he is willing, nay he is driven to make purchases. Let me show you what I am talking about. Here is what I have helped him do so far this year in  2007_the_year_of_Doom_and_Gloom  right?

Chris like most of my clients new or long term are participants on my  Buyer's_Web_Site or my  Investor's_Web_Site_&_MLS_Portal . These two sites are designed to keep you ahead of the game. If you are a savvy Buyer you want to stay ahead, Right? Once you sign up and enter your preferred search criteria you are set. The web site does the rest searching the MLS for matches 24/7 which are then sent to you within minutes of the Listing agent entering that listing into the system. Matches arrive by email on a map with full details photo's and an Address.

Back in November of 2006 Chris was alerted by email of a new listing just on the market in The Alberta Arts District. As most Portlander's know, this is a very hot neighborhood that many people want to buy in. The property a_Fixer-Upper_located_at_432_NE_Sumner  was listed for $209,900. We haven't seen prices that low in a while for that area. Within the hour Chris and I were walking through the vacant home and subsequently wrote an all cash offer with no inspections or contingencies with a close date in two weeks for $205,000. The offer was accepted and two weeks later it was his.

After closing Chris took off on a European vacation that he had previously planned. He instructed his clean up crew to do some minor work and to paint the outside as it was a horrible looking mess. The cost for the paint job was minimal and really made the place look a lot better.

By the time Chris had returned his plans to keep the Old house as a rental had changed. Instead he did a few interior cosmetic changes and then I put it back on the market for $264,900.

By the end of the first week we had an accepted offer for $261,350 which subsequently closed the following month.

A few more months went by and in July Chris and I were once again on the prowl. The property we were interested in however had been on the market for about a month without much action. And it seems as if it was not meant to be because by the time we wrote the offer everyone else decided to do the same thing. Sensing our frustration over the loss. The Agent told us about another property owned by his client. It was another_Fixer_upper_located_in_Portland's_Irvington_neighborhood  that he was preparing to put on the market the very next day for $269,000. Not believing my ears I quickly jumped in the car and Chris and I sped off to check this drastically under priced home out. Two weeks later the place was his.

Not waisting any time as this one was a true flip, I placed it immediately back on the market for $309,00. In Just a short month later it closed as well a little above asking for $310,000.

Reeling on the heals of his two earlier success's, the following month I got a call from an excited Chris at 8:00 PM. House Hunt Portland had sent him another listing which had been entered by the listing agent less than 30 minutes before. What was truly strange about this property was that it was listed as a 2 bedroom fixer in Irvington for $349,900. Possibly a little high for a 2 bedroom fixer. But very intriguing as it did have over 4000 sq ft.

With flash light beaming we went through the old 1885 structure originally built as a over and under Duplex. It was on an over sized lot with fabulous character a 2 car garage and a full basement. 3 baths and two heating systems. For the life of me I do not know how they came up with only 2 bedrooms. By the time we left we had counted 8.

Again 2 weeks later and Chis had closed on this gem. He paid a little more as the Seller was a non profit agency and was slow to react and he did not want to lose it. Sold price was $355,000

During the excitement of that first evening Chris had laid out his grand plan to convert this property back to either a duplex or as a rooming house, which is very popular in that area. However once again and at the very last moment he chose to flip the property to another investor that I work with for $369,000 instead.

Gary will do well with this project. And Chris? Possibly he will be out and about looking again, I imagine in a month or so.

To see more photos and read more about Portland_Oregon_Information_or_do_an_MLS_search please stop by my web site at www.portlandrealproperty.com

To sign up as an Investor or home Buyer please follow these two links at www.househuntportland.com for the home Buyer or at www.portlandflips.com for the Real Estate Investor.

All presented by Real Estate Broker Herb Hamilton affiliated with RE/MAX Preferred Inc. Realtors working within greater Portland Oregon.

" A Real Estate Transaction with Herb is One YOU will Profit from!"

What a wonderful afternoon it was shaping up to be. The sun was shining and all things appeared well with my then current group of Buyer's transactions. Thinking it could not get much better than this, my phone rang and it did.

The call was from Andy and Dawn who were then living in Rhode Island. They had been contemplating a move to the Pacific Northwest and after doing a little cruising on the 'net they had come across several of my real estate blogs prompting them to give me a call.

By the end of the call I had learned a lot about them and they about me. Not only were they interested in purchasing a home, they also had a home to sell. They asked if I could recommend an experienced Realtor ® in there area that could help them with the sale.

I also set them up on my Buyer's web site http://www.househuntportland.com/ where they could keep track of Portland Oregon neighborhoods of their interest by email with ease until their move.

My agent reccomendation hit gold and in no time at all Dawn and Andy had sold there home, and by early August they were Portland bound.

Three days after they arrived they gave me a call and we set a time to get together. We met at the University_Park_Coffee_House  in North Portland where and we set up a plan to get them into a home. Originaly they had planned to rent for up to 6 months while they looked around. But before we even got through our first cup of coffee I could tell that had all changed. " Herb, get us out of that apartment ,Please", they both said almost in unison. Having been home owners for the last several years they had forgotten about all of the little annoying things about apartment life.

Because their earlier Portland neighborhood selections had been so broad I thought it best for me to first preview the homes before we set a time for showing. I told them that I would begin previewing homes that fit their needs the following day. And I did, all 137 of them. It took the better part of 3 days.

On Saturday I was prepared, and they were eager to go. By the end of that first day I had showed them the top 35 homes covering every neighborhood that they wanted to take a look at. Later that evening they called and said that they had weeded out all of the neighborhoods except one, the  Alberta_Arts_District_located in_Close_in_Downtown_Portland .

That evening I changed the search paramaters for House Hunt Portland narrowing their neighborhood of choice to only the Alberta Arts District. The following day a new listing popped up and I quickly went to preview the home. It was perfect and was what I considered to be, significantly under priced. I imediately called Dawn and Andy. They were both at work and unable to see the home until later that evening. In the mean time I busied myself with a Market Analysis of the subject property, confirming what I already knew. The home was under priced by at least $30,000.

Later that evening as we walked through the home Andy asked me what I thought of the price. I told them what I thought and showed them both the market analysis. After talking it over they decided to make a full price offer. Even though there was stong interest by other agents I could not ask them to pay more than full price after being here for such a short period of time. I instead chose to tell them what the probability was of someone offering more than full price and left it at that.

There were three other offers by the time the appointment for presentation was set. They did not get this home. But it did prepare them well for our next offer which was just around the corner.

It was a little after 6:00PM a couple of days later when the cute bungalow in the Alberta Arts District was entered into the MLS for sale by the listing agent. Some short 20 minutes later I got the call from and Andy, he was very excited. This could be the one exclaimed having viewed the photo's online.

As we walked through the home a scant 45 minutes later it was very apparent that they loved this house. Indeed there were many similarities to this home and their previous home in Rhode Island. In fact the Seller owned and had on display many of the same books and pictures that had adorned bookcases and walls of the Rhode Island home.

It was meant to be they concluded. Another quick trip to the Coffee shop was in order. We quickly did an online check and found that this home as well was a little under priced. Not as dramatic as the last one but still a very good deal. The offer was drafted for $5,000 above full price and imediately sent to the Seller's Agent.

By the following morning we had received the signature of the Seller and 30 days later they were moving into their perfect home. Without having the ability to stay on top of things with my_Web_Site_House_Hunt_Portland, we might still be looking for that Perfect Home.

Dawn and Andy I wish you much Happiness in your Alberta Arts District Home in Portland Oregon.

" A Real Estate Transaction with Herb is One YOU will Prosper from!"

While cruising through the Blog Posts here on Active Rain I came across this Intriguing_Story  from Activerainer Karen Monsour. Her post and question is a good one. But as I began writing the comment it soon got out of hand and control, length wise. Hence this post follows.

Karen's Boyfriend gave her a chilling forecast and oppinion of the foreclosure market in Ft. Lauderdale and Broward County Florida. This according to Karen's story and in her Boyfriend's oppinion and experience as a Contractor and based on his conversations with several other investors working in the area.

So Karen's question  " What do you think will happen to the properties the investors are snatching up???" is a timely one and I would hazard to guess is on many of our minds.

Well first and foremost I will unequivocally tell you that Investors do not have any Magic Bullets nor are they immune to the woes of this current down cycle in the market. That does not mean that they are all doomed to failure and foreclosure as suggested by Karen's Boyfriend in her post.

The truth is that yes some will fail, and many others will prosper. The cause and effect that will determine which is which in this cycle is the same cause and effects that governed the current group of individuals suffering today. That is one of Greed.

Yes that's right GREED. Asked then or now, how many of us would consider banking on the real estate market continuing to escalate for ever and ever? It is not logical nor is it possible. The truth is we have all heard about and lived through real estate cycles. We all know that it has a tendency to go up and down and in some areas of the country the swings can be quite violent.

Yet many of us bit off more than we could chew when purchasing homes during the last few years as the market was in a steep climb up the ladder. Now I am not saying that as consumers we bear totally all the blame in this but what I am saying is that the fiscal responsibility for your financial well being starts at home.

So what about those current investors working within Karen's area or an area near you? Some will choose poorly yet others will prosper. For those who are working in an area of still depreciating prices and large inventories, this is an excellent time to pick up on some very good buys. Because a cycle is just that. What goes down will not continue to go down for ever. And in the future those picking up and holding on to great buys today will all be hailed as genius's in the next up cycle.

Good luck and happy Investing.

Presented by broker Herb Hamilton of RE/MAX Preferred Inc. Realtors :

To search for that next great Investment opportunity in Portland Oregon please be sure to visit my Investor's Web Site at www.portlandflips.com  where your next great opportunity finds you!

" A Real Estate Transaction with Herb is One YOU will PROFIT from. "

I just don't get it! Someone please tell me what the rationale is behind what appears to be standard fare in the lending industry. What I am talking about is the reluctance of Lender's to approve mortgages for Investors of Flip Properties especially over the last couple of years. I have been confronted with this reoccurring problem of financing Flip's in the Portland Market over and over again and it just does not make sense to me.

Is this my fault. Maybe I have just not reached out to other Lenders enough to insure this will not be a problem in the future. So what is the Problem you ask?

Well here is the scenario.

• ( A ) buys a property from ( B ) a cash sale that closes in 10 days
• ( A ) then sells to ( C ) for an escalated price.
• ( C ) purchases using a conventional loan due to close in 30 days

Now I know many of you are wondering if this is some sort of scam or something by the Buyer's. Perhaps they are in collusion trying to defraud the Lender. Or perhaps this some sort of elaborate money laundering scheme. Or worse yet someone has taken advantage of an Old Lady who does not know any better.

                         NO NO NO! It is none of that. It is strictly on the up and up.

Here are the facts. (A) is an all cash Investor who is constantly on the lookout for flip properties where he can make a profit.

Similar to Investors who buy and sell ( flip ) foreclosures. This Investor is not interested in Foreclosures as they tend to be more paperwork and often a lot slower due to the way most lenders handle REO's and Foreclosures. He would prefer just to keep his eyes on the market and look for opportunities.

Investor ( C ) also a client of mine is a Fixer Buyer who rehabs homes for resale. He tends to finance them and is also looking for deals that will make him money.

Enter property ( X ). This property came on the market about a month ago. The Listing agent had it mis-described in the listing calling it a 3 bedroom home. In Reality it was a Duplex with 8 Bedrooms on an over-sized lot in Irvington a very desirable neighborhood in Downtown Portland. The Price was about $350,000.

Buyer ( A ) received the new listing information from My_Investor's_Web_Site at about 7:00pm that evening and called me. By 8:30pm we had previewed the property together and written a more than full price offer. By the following morning we had acceptance by the Seller.

The terms was an all cash sale to be concluded within 10 business days and a 3 day inspection period. It was during the inspection that Buyer ( A ) mentioned he might possibly flip this property rather than keeping it. He asked me to shop it around. 

By the end of business on the final day for inspection Buyer ( A ) had made his final decision to flip the property. Before the end of business that evening I presented him with Buyer ( C )'s offer. The deal was accepted. By the end of the following week Buyer ( A ) closed on the house and Buyer ( C ) submitted his paperwork to his lender for a loan.

The appraisal on the property for Buyer ( C ) went off with out a hitch. In fact the appraiser said that he had a hard time finding comps in that low of a price range. This was no surprise to any of us. We had all felt that the property had been grossly under sold.

All was smooth sailing until the Underwriter starts squawking a bit about this flip and why was Buyer ( A ) making money in such a short period of time.

I ask you, what the **** is it of their business. Certainly I completely understand that they should be cautious and ask questions to make sure there are no cases of fraud or dirty dealings. But when the credentials of all parties are above reproach with a 15 + year history of these type of transactions with zero complaints. And further more the appraisal and verified Comps all indicate a vastly under marketed property in the first sale, then I just don't get it.

Is this some sort of envy or plot to keep legitimate Investor's from making a living? Are you a Loan officer or Mortgage Banker? Have you run on to this as well? Perhaps you can give me an explanation that makes sense.

************** UPDATE***********

Finally after writing this post and invoking as much emotion as I could without become vulgar " I ask you, what the **** is it of their business". Full well knowing that it is of course the Lender's money. I just did not have the full explanation of what the problem was.

Thanks to Mark_Pandzich_of_Wells_Fargo and his in depth explanation below. There is no more ambiguity.

Your 1st buyer buys house with cash under market value.  Cash Buyer contracts new sale at higher amount to your 2nd buyer, a fix and flipper.  Mortgage Broker originates and packages deal to wholesaler, makes 101.00 to 102.00 on deal.  Wholesaler repackages loan, sells it to investor for another 101.00 on the deal themselves.  Investor sells it to a servicer for another bit of profit.   At this point, your 2nd buyer has "fixed" the property and is now flipping it for sale and pays off the loan.  Most likely he's sold it in less than a year, which is not enough time for the cost of the loan to pay for itself (the cost being the income made by the broker, the wholesaler and the investor).  The servicer gets caught holding the bag with nothing to show for it.  Banks are in the business to make money, not give it away.

Thanks Mark!

..............................................................HELLLLLLLLLLLLLP!...................................................................

If you can't here the screams for help, perhaps it's because of all the complaining you've been doing. The Real Estate Market that we are experiencing is a natural part of Business.

• It is NOT NATURAL for Real Estate prices to escalate yearly in double digits.
• It is also NOT NATURAL for Seller's and Agent's to price properties at $25,000 TO $50,000 above market.

If this is the kind of market you have been experiencing or even worse if this is the only kind of market you know, I FEEL SORRY FOR YOU!

For you do not have a clue what the Real Estate Market is Like. So what is the Job of a Real Estate Agent then?

It is a Business that requires the Agent to have and use :

• Education
• Negotiation skills
• Psychological skills
• Social skills
• Marketing skills
• Tenacity
• Perseverance
• Dedication
• And the list goes on and on

It is almost easier to define what Real Estate IS NOT!

Contrary to the last few years popular belief, it is not:

• The easiest job in the world
• Where the biggest decision you will make all day is where to have Coffee at
• A job that you can do part time because everything sells, RIGHT?

***********

Update : It is not our Job to :

• Tell Seller's what they must sell there home for
• Tell Buyer's what they must pay for a home

It is our Job to bring Motivated Buyer's and Seller's together where market conditions will determine the value of the asset.

***********

If you are not the busiest you have ever been right now, it is because you do not know what it takes to be a Great Agent! For a Great Agent is Busy marketing, Prospecting, Showing and writing Contracts!

Contrary to popular belief, being busy is not all about showing properties to the 40 or so people who drove by your new listing. That kind of thinking was developed in the recent hay days of the market. It is also the kind of thinking and mind set that will have you out of business before you even know it. I would venture to guess that there are allot of you this very moment who are out of the business, YOU JUST DON"T KNOW IT.

Some years ago a Real Estate Agent friend of mine was working in a small community that had lost most of it's Jobs. People were terrified and I thought it must be a terrible market to be in.

                                                       NO JOBS = NO MONEY= NO SALES

Without a job and money how would any one buy a Home I wondered. My friend pointed out : That my Friend is Defeatist Thinking! This is a time for opportunity he said. This Market will not stay like this forever. Those Agent's that are sitting on their posterior proclaiming DOOM and GLOOM are my biggest asset he went on to say.

What are you talking about I wondered. His philosophy of Selling Real Estate was Simple. The first thing you need to do is to Identify how many transactions per year you want to do. If you live in an area that does that many then just make sure YOU DO THEM. Thats right if you want to do 100 transactions a year and the history of your area is only 50 in a year then you are in the wrong area.

The Rest of it is WORK. The basic skills of the Real Estate Agent. It is not about dressing up in the fanciest clothes or driving the Biggest Car. It is the fundamentals of Real Estate Sales.

Do you WANT TO BE NUMBER ONE ?   Do you WANT TO BE A SUCCESS ?

Then go to work. If you do not have the Skills then develop them. Or better yet just sit back and let the rest of us fly on by.

Are you looking to purchase some of the greatest real estate in the WORLD? Do you want to be notified of new properties coming on the Market in and instant. Stay ahead of the Competition. Get the Best Buys.

Investor's_Web_Site_for_Portland_Ore._Real_Estate  Investor's are not the only one who can benefit from technology. Let_Your_Next_Home_Find_You  search here for you downtown Portland Oregon Home. This Fabulous web site will search for your next home 24/7 and alert you within minutes! www.househuntportland.com

For more Portland Oregon and Downtown information please come to www.portlandrealproperty.com

All Presented to you by your RE/MAX Broker Buyer's Agency and Seller's Agency practiced here for .

" A Real Estate Expierience with Herb is One YOU Will Profit From "

Open House This Sunday starting at 1:00PM at 132 SE 71st in Downtown Portland's Mt Tabor Neighborhood

Fabulous renovation of this 1956 Custom Built Post-Modern Classic.

The Home features over 4400 Square feet on 3 Levels with 5 Bedrooms and 5 Full Baths.

Beautifull Oak Hardwood Flooring With a Wood Burning Fireplace are prominent features of the Living Room in this Downtown Portland Home.

The Master Suites Bath is simply stunning with Jetted Tub Large Tiled Shower just out of view here and Two sinks with plenty of Storage.

The Pacific Northwest and Crown Jewell Mt Hood as seen from the Sitting Room and Balcony of the Master Suite at 132 SE 71st.

132 SE 71st as seen from the Back Yard  and its Daylight Basement.

Additional_Photo's_of_132_SE_71st  can be seen at my web site www.portlandrealproperty.com 

And if your out and about in Portland this Sunday be sure to stop by at 132 Se 71st for a tour of this Fabulous Home.  You can also reach me on my Cell phone at (503)515-8889

If You are an Investor and would like to learn more about Renovations and FLips and Rehabs Give me a call or sign up for the Investor allert at www.portlandflips.com

See You at 1:00 on Sunday.