Welcome to a weekend edition of Sesemi Street, your investor guide to the OR & CA RE Markets.

In keeping with our goal of bringing you the most accurate real estate action from the front lines, we’ve found the last month particularly challenging for securing investor friendly deals on multi family and STR specific properties. During the past four weeks we’ve presented no less than NINE offers (in both Oregon & California) for six different investors without reaching terms ☹ Partly to competition on high demand properties, but also due to unrealistic seller expectations on overpriced inventory and timing.

As an investor focused realtor, I always suggest the path towards profitability, which begins with accurate valuation and market insight. Through robust analysis and intimacy with cash flowing assets, we’ve been able to consistently identify and anticipate high value investment targets and shifts in market sentiment and direction.

So…what’s happening in the market? Inventory is growing and multiple offers are slowing. We are seeing slight price reductions and even example properties that in the winter seller’s declined written offers, only to recently reduce their price near similar valuations. That said, in the luxury market with opportunity value (ie: STR eligible) there has still been considerable demand, with cash offers often ahead if financed offers.

One recommendation is to obtain a Pre-Approval instead of a PreQualification Letter. Essentially an initially underwritten file that is subject to property specifics such as an appraisal, but provides assurance to seller(s) that the transaction will close timely, often within 1-2 weeks. Our preferred lender can also provide a formal loan commitment within 24 hours of executed agreement.

What is the best path forward for investors? Keep the peddle to the floor and on high alert for properties that meet your criteria (Top prospects still go pending within days.) With a lull in buyer activity, there is greater room for negotiation of properties on market for longer as seller(s) are slowly adjusting their expectations. Mortgage rates have dropped roughly .5% in the past week and with some economic indicators suggesting a slower economy, there is potential for an end of summer interest rate cut which is expected to reinvigorate buyer activity.

Even in an ‘ideal’ market acquiring an eligible coastal STR or high yield multi family property can take several offers and persistence. Preparation creates opportunity. Keep in mind, owning a coastal OR STR is unique asset class, that is likely to include an increasing barrier to entry.

On a positive, several of our recent STR clients have recently been approved for their STR permits and will be launching their spaces just in time for peak season!

🗣 In Other News:

👀 Here are 11 STR Picks this week on the OR Coast:

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BONUS: Here are Four Fresh Multi Family listings in Oregon

We’re excited to announce Anthony Wong has recently accepted an executive position with Nationwide Mortgage Bankers aka Nmbnow.com as the new Vice President of Business Development. Anthony brings twenty years of mortgage experience to propel corporate growth in the PNW. This strategic partnership enables investors real time product and pricing access to investor focused lenders nationwide.

If you’re in contract (ANYWHERE NATIONWIDE) provide us one opportunity for a free loan review and competitive offer. We generally will not be outcompeted on rates or options and you’ll work directly with Anthony’s team at NMB.

Hosted by: Anthony AJ Wong Licensed RE Broker in the States of Oregon & California. FL NMLS ID: 2297941