Buying, selling and operating apartments in Portland

An unsolicited (or any) Offer – How do I rank/evaluate it?

27 July 2017
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Unsolicited offers sometimes work out for a seller.  However, what can you ask yourself to rate if it is a GOOD and SOLID offer worth your time to proceed?  Here are some questions to ask yourself, in order:

  1. PRICING – A breath-taking price may be not that high if you haven’t done an analysis on your property lately.  In 2013, the average sale was $88,934/unit in 2017 YTD = $161,131/unit or a 16% per year increase.  While we don’t anticipate this continuing, do a valuation / financial analysis.  Actively marketing the property will get you the best price 99% of the time – Unsolicited offers are seeking opportunities.
  2. EARNEST MONEY – CASH OR NOTE?  If you accept a note, a buyer may be able to tie your property up until closing with no cash out of their pocket.  Worse, they may be able to tie up multiple properties (as in a 1031 search) this way.  Without his cash at risk, the buyer loses a lot of motivation to negotiate with a seller. 
  3. EXPOSURE/RESUME – Has the buyer seen your property?  Does he own property in town?  Does he have a financing reference?
  4. WHEREWITHAL – Is the buyer willing to show proof of funds for a down payment?  If he is expecting to get a property for less than 25% down (or a LTV > 75%) that is probably unrealistic.
  5. NEGOTIATION – Assume the first number is not the best offer from a buyer on an unsolicited offer.  It may be a good test to see how they react to a counter.

We can do a very thorough financial analysis on your property which will point out how to increase your Net Operating Income.  We compare your rents and expenses to neighboring properties to address your priorities.  In addition, we provide a valuation with comparable sales to correlate value.  eMail me if you’d like a sample report to examine.


Portland Apartment Sales – June 17

27 July 2017
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To download the individual sales report, right-click the link below and “Save As”:

<<<Portland_June17vsJune16_AptSales>>>

Highlights:

  • Gross sales dollars June 17 YTD = $585M is a 39% DECREASE over June 16 YTD = $953M
  • $/unit June 17 YTD = $161K is a 17% INCREASE over June 16 YTD = $138K.
  • $/SqFt June 17 YTD = $183.20 is a 15% INCREASE over June 16 YTD = $158.83

Inventory is starting to grow.  However, properties priced at a premium to market are sitting.  If you’d like a financial analysis / valuation using real numbers contact me. 

If you’d like more information on:

– Free financial analysis of your property, eMail me for a SAMPLE report.  It will be very helpful if you’re making decisions about futures or operations.

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

– A very useful financial analysis of your property, call.  It will include I&E comparison to neighboring properties along with recent sales and rent comparables.

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


Portland Apt Market Sales 5 year History (2011-2016)

16 March 2017
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Attached is the 5 year (2011-2016) Portland Apartment Market Summary:

<<<<<< IMGNW_2016-2011_PortlandApartmentHistory_March2017 >>>>

Right-click to download the report.  It includes 2016 stats and 2011-2016 history of:

     2016 Operating Dynamics Trends

     2011-2016 5 year history overview

     2016 and 2011-2016 New construction overview

     2016 Sales By County

     2016 and 2011-2016 Sales By Neighborhood ($/unit, $/SqFt and reported CapRate).

     2016 and 2011-2016 Sales By Complex Size  (<100 units vs. 100+ units)

     2016 and 2011-2016 Sales By Decade Built

     2016 and 2011-2016 Largest Sales by Gross $ and $/unit

     2016 and 2011-2016 Largest Sales by County

If you’d like more information on:

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

– A very useful financial analysis of your property, call.  It will include I&E comparison to neighboring properties along with recent sales and rent comparables.

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here. 


Dec 16 + FY – Portland Apt Sales

26 January 2017
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To download the individual sales report, right-click the link below and “Save As”:

<<<portland_dec16vsdec15_aptsales>>>

Highlights:

  • CapRates reported are still in the mid 5% compared to 2015 in the high 5% range. 
  • $/unit Dec 16 YTD is a 15.6% increase over Dec 15 YTD.
  • $/SqFt Dec 16 YTD  is a 10.6% increase over Dec 15 YTD.
  • Dec 2016 YTD sales = $2922M vs. Dec 2015 YTD sales of $2360M

We are 24% over 2015 Full Year gross sales which is much higher than I would’ve projected in Sept 16.  50% of 2016’s gross dollar sales happened in Oct, Nov and Dec 16.

Dec 16 would’ve been a good year not that long ago (in 2010 to be specific.)

I’ll be posting a 5 year (2011-2016) Portland apartment sales history by mid-Feb, but if you’d like an earlier copy, eMail me.  I sort sales by:

  • County
  • Neighborhood
  • Complex Size
  • Decade Built
  • Largest sales per county by total sale, $/SqFt and $/Unit

Interest rates have jumped.  My conjecture is there’s a sense of impending rate increases driving a burst of large transactions in Oct-Dec 16.  Dec 16 had $668M in transactions (vs. $260M in Dec 15).

If you’d like more information on:

– Details/background on individual sales in the report or a breakdown by neighborhood

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using Financial Analysis

– A very useful financial analysis of your property, call.  It will include I&E comparison to neighboring properties along with recent sales and rent comparables.

Please contact me:

Steve Morris | Vice-President
IMG Northwest
1234 SW 18th, Suite 102
Portland, OR 97205
Phone: 503.970.4593 
steve@imgnorthwest.com | www.imgnorthwest.com
OR License # 200202054 | WA License # 24512

For the Oregon Real Estate Agency Pamphlet click here.
For the Washington Real Estate Agency Pamphlet click here.