Category Archives: Real Estate

Savvy Investors Are Now Exploiting Real Estate Opportunities!

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Stocks, bonds and mutual funds – the usual financial assets – gained significant value in 2009.  I hope you have been a part of that run.  Now, there are great values to be had in real estate.  If it is appropriate for you, it is time to add residential real estate properties to your investment portfolio.  Residential real estate offers a particular benefit to an investor and offers a wide variety of opportunities.  According to Gary Keller, real estate investments are

1.      Accessible- Anyone can buy it

2.      Appreciable- Increase in value over time

3.      Leverageable- Buy on margin & borrow against equity

4.      Rentable- Cash Flow!  Cash Flow!  Cash Flow!

5.      Improvable- Sweat equity

6.      Deductible/Depreciable/Deferrable- Great tax benefits

7.      Stable- Slow to rise & slow to fall

8.      Liveable- Shelter in more ways than one….

Today, there are real estate investment opportunities in very neighborhood in Portland.  I am referring to properties that can be cash flow positive and likely to offer appreciation again over time.  We are evaluating these opportunities weekly and we want to share our knowledge about how to take advantage of them.  Our team has experience listing and showing property throughout Portland, including investment opportunities.  We have a comprehensive perspective on Portland property types from townhomes in Forest Heights to condos in the South Waterfront to bungalows in Montavilla.  And we know where investors look when assessing real estate for their investment portfolio.

Would you like to learn about investing in real estate?  How to determine the real estate investments best for your specific objectives?  This year I am presenting a monthly seminar on real estate investment strategies and all are welcome – those new to this type of investment and seasoned pros.  We will discuss strategies and practice analyzing specific properties.  Our January session was a great meeting and led to some very good discussions.  I hope you can join us next week or sometime this year.

Please be our guest for our monthly real estate investing seminar that is customized for our clients.  Our February seminar is Tuesday, February 15th at 6pm at our office in the Pearl- 1220 NW Lovejoy #130, Portland, 97210.  Our March session will be March 9th at 6pm at our Pearl Office.   The April session is April 20th and this session we will begin at 4pm to make it available to those who need to get home earlier.  Future dates will be announced soon.

Please RSVP- space is limited.  The number is 503-416-4177 or email to Becky@thejacksonfiles.com.

State of the Real Estate Nation 2011

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Watch out for the danger in the usual pontificating that always starts the year.  It can hurt you!

I have a different take on what’s happening in Portland Real Estate.  I’m not writing to be a cheerleader for buying real estate, to express wishes for a strong recovery or to reassure you that The Jackson Group is still here and selling homes as before – though all are true!

My intent is to take the hype and sensationalism out of the conversation and show you the truth, in your neighborhood, in numbers and graphs.  Forget the headlines in the newspapers or the painful videos on the evening news and take a look at the data for your zip code in the charts and graphs attached.  You’ll see information that is confirmed by actual sales data rather than pundits’ impressions or broad statistics, such as the country and state numbers that are not relevant to you.  What the numbers here show are hyper-local details that more specifically reflect your own individual neighborhood – and the news, whether expected or not, is telling.

For example, in many of our inner Portland area neighborhoods the drop in the number of sales mostly occurred in 2008 and since that time sales have been relatively stable.  That tells us the demand for housing has adjusted and is stable again.   The number of sales, for the most part, stopped tumbling in 2009 and is either flat or slightly higher today.

On the other hand, prices are still falling, though at a lower rate of decline.  The drop in the average home price was the most significant from 2007-2008.  The fall was especially severe in neighborhoods where the overall value is generally higher.  And in those ‘high-end’ areas the decline has continued more steadily.  This includes the areas of Lake Oswego and the West Hills of Portland where the loss in value over 4 years is in the range of 27%-38%.  In areas where the average home price in 2007 was near $500,000 or less, the decline in value over the 4 year period is most often less than 15%.  This confirms a reality that we have observed anecdotally, that once the price goes above $525,000 the probability of a requirement for higher equity or a jumbo mortgage changes the level of demand.  This puts greater downward pressure on the price of those high-end homes.  In areas where the average price is below $500,000 the rate of decline in home values has slowed dramatically.

So what does all this mean to our clients?  Find your zip and compare the numbers here to what you may have thought based on the conversation in the national and local press.  Are you better or worse off than you expected?  If you are surprised by what this tells you, good or bad, give me a call and let’s talk about why.  Is there something about your home or community that sets it apart?  Maybe. Either way I welcome a conversation with you to assess your specific situation, especially if you have reason to move in the near future.

While the challenges are significant, the market shows signs of steadying.  More importantly, house by house the resale possibilities vary based on specific house and neighborhood conditions.  We have successfully sold and moved many clients through this “shifted” market and we have become well schooled in the new rules and peculiarities of home sales today.  If you are ready to move, don’t let the headlines stop you from calling us for a precise assessment of you situation.

We have several new offers in real estate to add to our services for home buyers and home sellers.  We are successfully selling and negotiating “Short Sales” with lenders on behalf of our clients who have more debt than current value.  If you need help with this situation, we have it for you.  As well, we are engaging more and more with real estate investors who want to take advantage of the adjusted market and accumulate rental real estate.  With a 20-25% down payment there is very favorable conventional financing available for qualified investors. There are many properties on the market now for investors to consider that are well priced and cash-flow positive.  This may be a good time for some to begin or add to a real estate portfolio.

To help our investor clients I am offering an investor seminar monthly for the entire year.  The first one will be Thursday, January 20th at 6pm at our office in The Pearl.  Please join us, all are welcome.  If you have questions, or to register for the session, please send us an email at Becky@thejacksonfiles.com or call the office at 503-416-4177.

Good wishes to you for 2011,

Becky Jackson

If you would like a more detailed look at these charts- please email us at becky@thejacksonfile.com

Distressed Property- Rent, Short Sale or Foreclosure?

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With the decline in the real estate market, many home owners are now upside down on their mortgage.  They may have over borrowers and over paid related to what our market can produce today.  There are many options for homeowners to consider.  You should also consult your financial or tax advisors when making these significant investment decisions.

Foreclosure- the option that everyone should try to avoid and only use it if it is your last resort. A foreclosure on your credit history can drastically affect how you can borrow and spend money in the future. It can lower your credit score up to 200-300 points. It is not the choice to take unless someone has lost everything else and has no other options.

Renting- a homeowner might need to change their thinking about their home.   Real Estate is a long term investment. During the fast days of 2003-2007, people were buying and selling so quickly because the market was shooting up so fast. Those days are gone and so real estate appreciation has slowed to a steady level once again. The value of your home WILL go up again but it might not be at the level you purchased for quite some time. If you can consider a rental and stomach covering the additional amount of the mortgage, taxes and insurance- then you might not lose your equity, it would have no affect on your credit and you could move and rent another home that is within your budget. You might have to change your thinking about her mortgage payments- think of it as a payment into an IRA. You might have to tighten your belt a bit but at least you won’t lose your equity.

Short Sale- we are doing a lot of short sales now. Short sales are a good option for home owners that have lost a lot of equity and now owe more in their mortgage than the home is worth. The paperwork and length of time it takes to get a reply from the bank takes a lot of patience so you have to be prepared to make it wait once you submit the paperwork. The bank assigns you a negotiator and then you work with them to lower the loan pay off amounts and release the debt deficiency. Often, there is none or very little affect on one’s credit score. The bank is usually more willing to work with people that are in some type of financial distress- job loss, income reduction, etc. But I have seen sellers will high net worth’s have success with short sales. If you are considering a short sale- you will need a real estate agent with short sale experience that can assess your situation and see if a short sale is a viable option.

Loan Modification- this is also an option but a difficult one to obtain.  Your bank might be willing to work with you to modify your mortgage to decrease your monthly payments if you are in a financially distress situation.  Contact your mortgage holder’s loss mitigation department for more information.

Priced to Sell and Show Well

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The direction of pricing in our current market is no longer “priced right and looking food.”  Rather homes that are “priced to sell and show well” are compelling buyers to take action.

What I have seen a lot of in this ‘recessionary’ market is that buyers have become even more demanding than they ever were before.  They almost have an attitude of entitlement – like it is their turn to be the winners in negotiations.  They take it for granted that they are going to get a good buy and wait and they have no compunction about making low offers and standing firm.

The problem is that with all the choices and the many houses on the market these buyers are often successful with their posture, and if they are not it is not uncommon for them to wait on the sidelines for a better deal on the next one.  Sellers- do you want to wait for a better market or sell now in the market you have?  All homes for sale get “priced” in the marketplace, and the ones we see selling are priced at very compelling values.  Otherwise, there are many houses on the market that are waiting for something to change.  And the problem is that we have learned that change in this market has mostly been moving lower, not higher.

Value seems to be the primary focus of current buyers and can you blame them?  With the present fear in the financial market- everyone is acting more conservative with their investments. Property condition has become secondary to property value.  Perhaps this market has allowed buyers to seek more potential in their home’s condition rather than the appreciating value of the home.

How to Winterize Your Home

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You’ve pulled your sweaters out of mothballs & your mittens from the bottom of drawer. What about your house? Is it prepared for the cold? Our experts have boiled down your autumn to-do list to 10 easy tips!

1. Clean the gutters– once the leaves fall remove the leaves and other debris from your gutters by hand, scraper or spatula. Use a good hose rinse to see if there are any cracks in your gutters.

2. Block the leaks– Seal any leaks on the inside and outside of your home using door sweeps or caulk.

3. Insulate– Spend some money to add additional insulation to your home. You’ll get it back in the form of lower energy bills. Have at least 12 inches of insulation.

4. Service the Furnace– HVAC specialist to service every 1-2 years for approx $120.

5. Get your ducts in a row– Central heating ducts can lose up to 60% of heated air before that air reaches the vents if ductwork is not well-connected and insulated. Check your ducts in the attic and crawl space, repair places where the pipes are pinched and fix gaps with . . . . . . . duct tape!

6. Face your windows– Take down window screens and put up storm windows. Consider upgrading to new windows which will help lower your energy bills.

7. Inspect and clean the chimney– See reverse for our recommended contractors.

8. Make sure your crawl space or basement is properly vented– Keep your crawl space vents OPEN during the winter months so the space will be properly vented when it rains or snows. If you have a sump pump– make sure it is working properly and the vapor barrier is properly graded for optimal water drainage.

9. Wrap pipes and hose bibs– Install a Styrofoam cup around hose bibs and wrap all un-insulated pipes in unheated areas of your home.

10. Check alarms systems– Change batteries and check the operation of your home’s smoke detectors, carbon-monoxide detectors, and generators.

Businesses and People We Recommend For Help Winterizing Your Home

Gutter Cleaning

CJ’s High Climbing Services 503-228-9278

Metro Gutter Service 503-771-5529

Chimney Repair/ Inspections

Oregon Chimney 503-231-2588

Paramount Masonry 503-260-3911

Drainage Contractor

John’s Waterproofing 800-810-5883

HVAC Specialist

AAA Heating and Cooling 503-284-2173

Ron Hardy Heating 503-222-9654

Insulation Contractor

All Weatherization 503-649-6542

Alpha Energy Savers 503-658-2212

Tree Trimming

Rich’s Tree Service 503-465-2133

Wind Thin Tree Services– 503-481-4628

Window Installer

Alpha Energy Savers 503-658-2212

Oregon Window Installers– 503-829-8117

Celebrating “The Village”

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We recently wrote about a transaction that we closed for our buyer that “took a village.”  All of the parties really worked well together and in everyone’s best interest.  By everyone I mean that both the buyer and the sellers took each other’s best interest into consideration when making requests and performing tasks.  The buyers stayed reasonable with their requests and the sellers consistantly took challenges with stride and performed without hesitation.  I knew from seeing the subject property that it was going to be a difficult transaction.  The unknowns were the parties involved.  So I truly feel that it was because the parties worked together that this transaction came together.

As a testiment to the village’s accomplishments, the new owners hosted a get together for everyone involved in the transaction.  Both listing agent and selling agent, the entire buyers’ family and both of the sellers, and the lender and his team were all there to celebrate.  We toasted each other with champagne and once again acknowledged that everyone deserved a pat on the back.

What happier ending could you ask for than a Kodak moment with everyone involved in the transaction.  It made my year and I thank everyone once again for all of their hard work!

Buyers and Sellers Celebrate

Buyers and Sellers CelebrateEveryone Cebrates

SOLD! . . . to the highest bidder . . . Atwater Place

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By Becky Jackson

The Atwater Place auction was  fun and crazy.  I have renamed the auctioneer “Accelerated Chaos”!  They have their systems, and they are working with many newly-hired and un-trained people, but there were so many confusing and contradicting rules and statements going into the auction and a million small, redundant steps for everyone to follow.  Seems like they wanted to foster chaos along with the hype.

The auction was active, fast – but not uncomfortable, and sales were generally well above the minimum bids, consistent with recent market results and at substantial discounts from the recent price lists.  Many of the sales were at prices which can be negotiated from developer price lists if a buyer is brave enough to ask and push for it, so in the end we reach the real market price, one way or another.  Sellers can set asking prices, but Buyers determine value by offering and paying what they will.  Tonight 40 people offered and agreed to buy which made a vigorous market happen where there had not been one before.  Some may have paid a bit more than they expected, having gotten caught up in the bidding, I don’t know, but the overall average is a sales price of $291/SF, a substantial discount from most current price lists on A-grade new condos.

There appeared to be numerous willing bidders for all units, except the penthouse which had no offers, and which is fully valued at their ‘minimum’ in my opinion and validated by the buyers tonight. There were also very few bidders for the two townhomes, which is consistent with current market demand for townhomes and reflected in the much lower price/SF for those homes.

This auction was certainly not a cheap process to pursue, but it did lead to sales of 40 homes in a months time – a significant jump in velocity for condos sales for sometime.  Now, the challenge is how they follow that up and sell another 100+ high end homes with the same level of urgency!

Atwater Place To Auction 40 Homes!

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The owners of Atwater Place in South Waterfront announced recently that 40 homes in the building will be sold at auction on September 20th. Many of you have called or emailed with comments and questions, so I thought I would speak up about this to help others understand what is happening, what it means for the marketplace and what you need to know if you want to participate.

Many people are talking about this auction as if it were a sorry situation, but that is absolutely not the case. The best thing for the marketplace is to have these condo buildings with many unsold homes have an auction to sell condos at prices that buyers are willing and eager to pay, rather than continue to sit with unsold homes that are priced as if we are going to go back to $400/SF! Well, that ain’t happening any time soon, and when the owners of condos understand that, we will have a healthy and active market again. The best thing for the current owners of homes in these buildings is that the rest of the homes get sold and the buildings get fully occupied by new homeowners who move in, shop in the nearby retail, take walks in the neighborhood and help make the building and neighborhood a vibrant place to live.

Atwater Place Condominiums at South Waterfront

Atwater Place Condominiums at South Waterfront

The auction for Atwater Place is the first to happen in Portland’s downtown area so we will be learning on this one how the marketplace will respond. I believe it is a terrific opportunity for condo buyers to buy premium homes in a stellar building and a top quality neighborhood. These are all good features of A-grade property, the kind that every homeowner seeks, and the only reason these homes are not already sold is that they are priced too high on the builders’ price lists. The auction should give buyers the chance to set prices they are willing to pay, which may not be as low as the minimum bid, but which will be appropriate for the current economy and today’s market environment.

Here’s what you need to know if you are interested in attending the auction – and The Jackson Group is well prepared and available to assist you with any specific needs, from plain old information to full blown representation for a purchase. The seller will pay the fee for our services to represent you to buy at the auction, though there are some rules attached to that. Call us if you have questions, and plan to have one of us accompany you to visit the Auction Showroom to register you as our client.

Facts to know:

Auction Date and Location: 4:00PM Sunday, September 20, 2009

Marriott Portland Downtown

1401 SW Naito Parkway

Portland, OR 97201

40 Homes are offered for sale at the auction, with pre-set minimum bids which, if offered, will be accepted. The seller reserves the right to change the units offered at the auction and may do so based on buyer interest. The homes range in size from a 931SF 1-bedroom to a 2355SF premium home with minimum bid prices from $169,900 to $899,000. We have the complete list of homes plus floor plans, so call us if you want more details.

All potential buyers must be prequalified with one of the pre-approved lenders (Bank of America or MetLIfe Home Loans) prior to the auction – even if you intend to use your own lender. Cash buyers must provide proof of funds prior to the auction.

All buyers who wish to participate in the auction must be registered by submitting a completed written form by 7pm on September, 18th. On auction day, bidders must have a cash equivalent (cashier’s check payable to yourself) of $2500 for each home they may purchase. Upon successful purchase, buyers must endorse their cashier’s check to Ticor Title Company and agree as part of their purchase agreement to increase their deposit to 3% of the sales price, which must be paid with a personal check payable to Ticor Title that evening.

Closing of all successful purchases shall happen by October 19th, unless an extension is agreed to in writing with the seller.

There are at least a dozen other special conditions, so if you need more information, please call us and we can go through all the fine print with you. Again, we believe this is a positive event for the marketplace and we encourage people who may be interested in buying a downtown condo to get involved if only to learn and then determine if there is a positive possibility for them in this auction.

Have a great holiday weekend!

Becky

March Statistics for Portland area Home Sales

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Here is the latest march-2009-market-action report from the RMLS. This is the monthly summary of the real estate sales statistics for our region published by the Regional Multiple Listing Service.

In February both the increase in sales and the decrease in listings relative to last month (January) had a positive influence on the amount of inventory for the Metro area. Inventory now is just over 16 ½ months, down from the record breaking high of 19.2 months in January. While this is both good news and a positive change, we are still in a market that is hugely biased in favor of buyers due to high inventory and very low demand. Until this imbalance changes we can only expect that pricing pressure will continue to be on the downside. This means that for selling listings our strategy must continue to hold to these tenets: very competitive pricing, excellent condition and showing preparation, showing convenience for buyers’ brokers and multi- focused marketing strategies for reaching all possible prospects. We also keep clients well informed by offering regular reports on the number of showings for properties and feedback from the brokers or buyers about those showings, plus the competitive picture specific to each listing.

Another report we provide is the “market analyzer” which shows market demand and inventory absorption in a specific property area and type, among other things. This report is key to understanding why pricing much be considered in terms of demand as well as property comparison. For example, we may be able to determine that a property is priced competitive to all other listings, but still have sales challenges because there simply is such light demand.

For buyers we provide all the same detailed information for the areas and specific properties that are of interest in their home search.  Knowledge is power!

Our intent is to provide legitimate statistical information that i useful to you for taking care of your plans for moving.  We know that a big decision like buying or selling a home cannot be done without the analytical information possible to help with those decisions. There are a lot of good things about our business that are emotional and subjective – we need to have personal and emotional connections to our homes. Added to that ‘emotional connection’ I welcome the ‘proof’ of statistics to help us with strategies and decisions. This is true for both buyers and sellers alike.

As always, if you have any questions or want to discuss something specifically, please give us a call at 503-416-4177.

Becky

Becky has three great properties for rent!

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All three are vacant and sparkly clean and ready for your stuff.

In the Pearl:  An edgy loft in The Streetcar Lofts building.  10 foot ceilings, exposed concrete and ductwork, hi-style and hi-tech lighting and a double door balcony.  This loft is perfectly located at 12th and Lovejoy where it is steps from Safeway, on the Streetcar line for commuting and a short walk to Jamieson Park.  The rent is $1195.

Streetcar Loft

Streetcar Loft

At Uptown in Northwest Portland:  A killer view of the city of Portland, Mt Hood and Mt St Helens from a remodeled one-bedroom condo at the Hilltop Condominiums at Uptown.  This is a great Northwest Portland location near 23rd and Burnside.  You can’t beat the view for $1245/mo.

Hilltop View!

Hilltop View!

And finally, a three-bedroom townhouse at The Brownstones at Forest Heights,  This one has 3 beds and 3 baths, vaulted ceilings, skylights, a gas fireplace, a deck from the living room overlooking the greenspace and a private patio with roses.  The location is a winner!  It is just a short walk to the elementary school and a short bit further to the neighborhood center with a Starbuck’s, the Prime and Vine deli, a bakery and Postal Annex amoung other great merchants.  Easy bus access to downtown is also handy,  Rent is $1595/mo.

Brownstone Living Room

Brownstone Living Room

Call me if you or someone you know is looking for a rental in Portland for immediate or near-term occupancy.

Becky at 503-680-1440.