Arnold Schwarzenegger. Not a name you associate with real estate, right?? Well, guess what folks! He did NOT make his millions from being the #Terminator or #KindergartenCop. He made it in real estate BEFORE becoming famous!!!! 😳😳😳
In fact, he was ONLY 25 years old when he was already a millionaire from real estate investing. 😳 Real estate is one of the safest long-term strategies for building wealth. But a lot of people don’t realize you can make real cash today in short time if you can live simply in the early years. 💵 No, I’m not talking get rich quick in one year. But in several years, it’s possible. How? By living simply and buying a small house or duplex, then trading UP. From a duplex, move up to a 4-plex. From that, move up to a 16-unit building, for example. Remember: your initial purchase must come from your own pocket and income source, BUT it snowballs from there due to equity built from appreciation and CASHFLOW income from the monthly rents! 💰💰💰
You learned something new today! 😊
1% Real Estate Broker – The New Normal™
Interested in house flipping? I get asked about that a lot. Here are the basics of what and who you’ll need:
1) Hard Money Lender. Unlike the late-night infomercials promising you riches, you will need money to acquire properties. No, not the entire amount of the list price on a property, but you’ll still need a down payment and that’s 20% for a conventional lender. Their interest rates are low, but they have more stringent requirements to qualify. Hard money lenders lend at higher rates, but they’re private individuals or a group of individuals without the governmental requirements needed to lend you money fast. They’ll lend you the money for the purchase of the property AND repairs, but you must also put some form of down payment as well, so you have “skin in the game” and they’re not left having to do the work if you skip out.
2) Construction Crew. To be a house flipper in WA state, you need a general contractor’s license if you’ll be hiring subcontractors OR hire a GC to hire subcontractors. This area of the U.S. does NOT have the great number of blue collar trades that other states do such as Southern CA or AZ. Our contractors have an abundance of work and can take their pick of jobs, so expect to pay good money for labor.
3) Wholesalers. You know those little signs you see on the side of the road, on poles, etc. that read “We buy ugly houses,” or “We buy houses, any condition”? They don’t actually buy houses. Haha! They put your house under contract then sell the contract to a house flipper. They make money and the house flipper gets a house at well below market value. That’s how they can flip the house and make a profit – because it was done off market (that is, NOT on the MLS). And that’s also why putting your home on the open market (that is, the MLS) is the best way YOU can make the most money from selling your house. When it’s on the MLS, your property gets exposed to the greatest number of potential buyers, including investors. As supply is perpetually low in the Pacific Northwest, investors DO look on the MLS for fixers. Don’t expect to get paid the same as a house in good condition, of course, but certainly better than a wholesaler will offer you. Back to being a house flipper. You want to know a few wholesalers who can bring you good deals to buy.
4) Join a local REIA – Real Estate Investors Association. Every major city has at least one. This is a great place to learn about real estate investing from people who are actually doing it. It’s also a great place to connect with wholesalers and hard money lenders. Contractors don’t attend much for the aforementioned reasons; they just don’t need a local REIA to get business.
DAISY CASILLAS, 1% Real Estate Broker
(206) 866-8090 call or text
1% listings. Just 1.5% total if I represent your buyer too.
Why are real estate brokers harping on buying a house now due to low interest rates?? Here’s a visual! Your buying power increases as interest rates drop. There’s a huge difference between a $500,000 home and a $700,000 home. Alternatively, if your goal is to keep your monthly payment low but buy the more modest house, now is the time to do it because interest rates will keep your payments lower. Click here to go to the home buying section of my website.
Rental Registration and Inspection Fees
Beginning in 2019, all rental properties located within the City of Seattle will be required to renew their rental registration license. We recently learned the city is proposing drastic changes to the fee and licensing requirements. The below information is proposed and any changes must be approved by the city council.
First, the city is proposing to amend the renewal cycle to a once every two year renewal. Previously, the program required renewal once every five years.
Second, the city proposes changing the fee schedule to “create a more equitable fee structure” and to “better align fees with the work performed.” In 2014, rental properties were charged $175 per building plus $2 for each additional unit in the rental property. For a 100 unit property, the cost was $373 for five years.
The city is proposing to increase the fee to $70 per building and $15 for each additional unit. The proposed increase would require a $1,610 license every two years in a 100 unit building.
Additional changes are being proposed and include new fees. We are assessing opportunities to engage members of the Seattle City Council to further discuss this proposal.
– Courtesy of WMFHA
Washington Multi-Family Housing Association