Strategic Realty

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Why You Should Use Strategic Realty’s Property Search Over Zillow or Redfin

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All the Listings, None of the Hassle

If you’re on the hunt for a new home, commercial space, or industrial property in Central Oregon, you’ve probably heard of big names like Zillow and Redfin. But what if we told you that Strategic Realty offers you access to the exact same properties, with several unique benefits?

What Is Our “Property Search System”?

Our “Property Search System” is like your personalized catalog of real estate opportunities. It’s customized to show you properties that match your specific needs, whether you’re searching for a family home, a commercial storefront, or a specialized industrial space.

Benefits of Using Strategic Realty’s Property Search System

Access to All the Listings

We offer access to all the same listings you’ll find on larger platforms, but with added value—like personalized, local expertise you can’t get from a national site.

First Dibs on Upcoming Listings

Once you’re registered and we know what you’re looking for, you can get early access to listings before they even hit the market. Many properties are known to us before they hit the market. Talk about a leg up on the competition!

We Need to Know Who We’re Helping

To deliver this personalized service, yes, we do ask you to tell us a bit about yourself. This helps us help you. And don’t worry—if you want to browse in peace, just let us know. We’re not here to hassle you.

Your Data Is Safe Here

When you sign up, your personal information stays with us. We don’t sell or share your data, so you can search with peace of mind.

Local Expertise and Specialized Services

We offer insights and services you won’t find on big platforms. Think distressed properties and deep local market knowledge.

Custom Alerts Customized Just for You

Receive real-time notifications on new listings, price changes, or market trends, all tailored to your specific criteria.

Start Your Property Journey Today

Why settle for a one-size-fits-all approach? With Strategic Realty, you can enjoy a personalized, secure, and insightful property search experience. Register today and discover the difference we can make in your next real estate venture.

A Guide to Building Wealth with the BRRRR Method in Real Estate Investment

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If you’re keen on diving into the world of residential real estate investment, you may have stumbled upon the term BRRRR. This stands for Buy, Rehab, Rent, Refinance, Repeat, and serves as a strategic roadmap for long-term real estate investing. Unlike the one-time profit of house-flipping, the BRRRR method aims for a steady income stream and long-term equity growth, making it ideal for those invested in the long haul.

Demystifying the BRRRR Method

The BRRRR framework provides a structured approach to real estate investment. Starting with purchasing a property in need of some TLC, you move through a series of steps—renovation, rental, refinancing—to ultimately cash out your initial gains. Then the cycle begins anew with another property, setting up a chain of compounding financial rewards.

Even if you’re new to real estate, this multi-step strategy can be approachable with the right planning and a comprehensive grasp of market dynamics.

The Cornerstone: Property Acquisition

As real estate investor and finance educator Todd Baldwin rightly puts it, “Your profitability is determined at the acquisition stage.” Securing a property at a discounted rate or under market value is your first win, simplifying the challenges that follow. Ideally you will never spend more than 70% of the after-rehabitation-value on the acquisition.

Breaking Down the BRRRR Steps

Buy: With a sea of options, it’s crucial to focus on properties requiring upgrades but with promising financial potential. Conduct thorough due diligence to know the exact scope and timeline of necessary renovations. Also, understand your financing options and cash requirement for the project up front. Don’t get so focused on the property that you lose sight of the money side of the equation.

Rehab: This stage involves making the property appealing and livable for tenants. While you might not be an expert in rehabbing, professional consultation can offer accurate cost and timeline estimations. Always have a contingency budget for unexpected expenditures. Control your costs and control your timeline.

Rent: Once the property is up to standard, your goal is to rent it out at a rate that at least covers your mortgage. Property management companies can be invaluable in handling the complexities of tenant relations and ongoing maintenance. Getting the wrong tenant in the property could kill the whole project.

Refinance: This is where patience plays a role. You’ll be accumulating equity in the property as you await the opportune moment for a cash-out refinance. Different lenders have varying conditions, so a nuanced understanding of these requirements is critical.

Repeat: The unique selling point of the BRRRR method is its replicability. Once you’ve mastered one cycle, you’ll find each subsequent iteration easier, adding layer upon layer to your income-generating property portfolio.

Who is the Ideal Candidate for the BRRRR Method?

The BRRRR method is not a universal fit. However, those who are willing to invest the time in learning the ropes and perhaps get guidance from experienced investors can navigate this intricate yet rewarding path successfully. The optimum person for BRRRR is an investor with access to substantial cash or private loans, an understanding of residential construction and project management, and the desire and ability to take on some risk.

The Pros and Cons

Pros:

  • Steady and Reliable Passive Income
  • Consistent Growth in Equity
  • Scalable Investment Strategy

Cons:

  • Significant Time and Financial Investment in Rehab
  • Longer Timeframe to Profitability
  • Increasing Landlord Responsibilities as You Scale
  • Market Risks and Financial Variables

Parting Advice

If the BRRRR real estate investment model piques your interest, knowledge is your most valuable asset. Exhaustive research, expert consultations, and possible mentorship can offer a well-rounded understanding of this intricate yet lucrative investment approach. Reach out to us, and we can get you started on all of those tracks.

While the BRRRR method comes with its share of complexities, proper planning and prudent decision-making can make it a rewarding venture, even for those new to real estate investment.

Government Funding for Your Home Improvements

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If you’ve been contemplating home improvement, especially those that help the environment while reducing monthly expenses, this is a great year to get started on them.

In 2002, Congress passed the Inflation Reduction Act (IRA) which dramatically increased the tax incentives on many home improvements related to energy savings. In Oregon, we’re fortunate to have a non-profit organization that can not only help you navigate through some of these potential savings, but in many cases, add cash incentives themselves. EnergyTrust of Oregon helps businesses and individuals save on their energy costs and improvements and they are a great resource when evaluating some of the Federal incentives that you may be eligible for.

With the passing of the IRA, you may be eligible for up to $14,000 via the “high-efficiency electric home rebate program.”

Income caps apply, but you may get to that maximum by buying efficient, electric appliances: $1,750 for a heat pump water heater, $8,000 for a heat pump that heats and cools their home, and $840 for an electric stove or an electric heat pump clothes dryer.

You can also get rebates on non-appliance upgrades such as $4,000 for an electric load service center upgrade; $1,600 for insulation, air sealing and ventilation; and $2,500 for electric wiring.

In most instances, rebates can be combined with tax incentives plus other cash incentives from place like EnergyTrust, so the savings to homeowners is really significant.

Pro Tip: To get the maximum savings out of these programs, phase your improvements over a few years when practicable. That’s because of the annual limits on savings. For instance, windows are capped at $600, but that cap renews every year for the next decade or so. By phasing your improvements you’ll be able to save money each and every year.

Closing Costs involved in purchasing a home

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Understanding Some Common Closing Costs

Application fee – A fee charged by the lender to offset fixed costs related to mortgage loan processing such as appraisal, credit report and underwriting.

Closing fee – The fee by the closing company who prepares the closing documents and closes the loan on behalf of the lender.

Commitment fee – This is often called an origination fee.

Discount points – One point is equal to 1% of the mortgage amount. The lender uses points to adjust the yield on the mortgage when it is sold to an investor. By paying more points, the borrower can obtain a lower mortgage interest rate.

Funding fees – Normally applicable to VA loans only. The fee is due at closing and may be added to the loan amount and financed.  Be sure to check with your lender for further details and exact fees, charges, etc.

Homeowners insurance – A 1 year premium is typically due in advance at the time of closing.

Mortgage Insurance – Insurance that is required by the lender when the down payment is less than 20%. In the case of loan default, this insurance reduced the lender’s loss.

Pre-Payables – are funds collected from you at the time of closing for (1) Prepaid Interest is the interest that accumulates on the mortgage loan from the date of closing through the end of the month. (2) A Reserve Account (sometimes called an “escrow” or “impound” account) is an account of funds held by the lender to assure future payments for items such as real estate taxes, hazard insurance, flood insurance, mortgage insurance and other assessments. You will probably have to pay an initial amount for each of these items to start the reserve account at the time of closing. A portion of your regular monthly payment will added to the reserve account. Prepaids can change based on the day of the year and month you close.  Be sure to check with your lender for the exact amounts.

Processing fee – fees charged by the escrow processor, either working for the escrow company, title company or real estate company for administrative services performed from the point of contract through closing.

Recording fees – fees charged by state or municipal entities for entering the closing documents into the public record.

Title insurance – Provides protection for lenders and homeowners against financial loss resulting from legal defects in the title. The cost of a standard owner’s policy is usually paid by the seller at closing.

Underwriting fee – practices vary from lender to lender. Check the good faith estimate for the amount of the underwriting fee.

Lead-Based Paint – What you need to know

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All sellers with homes built prior to 1978 are required to fill out a lead-based paint disclosure form and provide you, the buyer, with a lead-based paint educational booklet in any sale (see link below). Lead is a highly toxic metal that was used for many years in products found in and around our homes prior to 1978.

Lead may cause a range of health effects, from behavioral problems and learning disabilities, to seizures and death. Children 6 years old and under are most at risk, because their bodies are growing quickly.

On the other hand, there are millions of homes with lead paint out there, and many have been painted and repainted several times so the lead paint is well covered up. When in doubt, have the paint tested and evaluated either at a local laboratory, or with one of the home test kits available at your local hardware store.

 

For the complete home buying EPA pamphlet on Lead based paint, click here 

Office Location

Our full-service brokerage is strategically positioned in downtown Bend, Oregon, close to the city's heart. We invite you to visit us and allow us to demystify the complexities involved in the process of buying and selling.

325 NW Vermont St., #107 Bend, OR 97703

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