Let’s talk about swapping investment properties.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: Today we are going to talk about what’s going on, how to move your money to the right spot at the right time for your optimum return.
René Nelson: Okay, so let’s just dive into this. About two weeks ago, I had a listener call me and say, “Hey, I listen to Bob and Marcia on the radio all the time. I need help. I want to sell one of my single family properties and I want to buy a multiunit property. How do I do it?”
So I’m going to walk you through quickly, the questions that I asked him and how this all came together. The first thing that I talk about with clients is, “How much cash do you have available to work with?” That starts with the down payment. And what that will then tell me how many units that they have the ability to go into. And then I also ask a client, “What’s your experience of ownership?” If you’ve only owned one single family property, you may be a little gun shy to jump into a 15 or a 20 unit project. So-
Marcia Edwards: René, what about risk? I like to know and understand people’s risk threshold. Are they going to be able to sleep nights if they do an investment on this scale?
René Nelson: Oh, it’s definitely a concern with the risk. So part of that, that I’m gauging and asking questions of clients has to do with do they self-manage now? And do they want to self-manage when they move up to bigger units? Or are they going to hire a professional property manager? And one of the reasons that I do that is I want to know do they understand what the current tenant-landlord laws are dealing with COVID?
Marcia Edwards: Right.
René Nelson: Do they understand that?
Marcia Edwards: Exactly. Going professional is a trend and it’s such a smart trend. Also, when you have more units, you have the opportunity for not only professional management where you can delegate and get more passive income, but also the opportunity to, if there is a vacancy, offset it with the other occupied units.
René Nelson: Absolutely. And the next show, Marcia, let’s talk a little bit about if someone wants to buy a market rate apartment complex versus a value add, and let’s just talk about the steps.
Marcia Edwards: There’s some great management opportunities and ownership opportunities out there. Let’s talk to René next program.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.