We’ve all heard the phrase “Hindsight is 20/20” and most of us can look back at a specific point in our lives and see things more clearly than we did at the time of the event. As we enter 2022 we are looking back at the year 2020….and 2021! It seems like they blended together in a surreal shift in our culture, financial markets and social norms. Every re-visit to the past should be seen as an opportunity to gain knowledge and learn from our prior decisions. This is no different and the past two years are unique in that there is not one person on the planet who was not affected in some way. The pandemic made many of us think about what we valued, how prepared we were for a significant global shift and then reflect on what we would have done differently. 

At the Hindsight 20/20 Symposium, leading industry professionals will break down some tough questions to turn hindsight into foresight as you make decisions moving forward. We’ll address questions like, “are my investments diversified enough for the next global issue?”, “is my real estate portfolio structured to weather the next shift in the market?”, “are all of my assets protected?” and “are my affairs in order in case something happens to me?”. We’ll also have industry professionals in the legal area, real estate, finance, lending, insurance, and other economic areas give insight on what to expect and be a resource for related questions. 

Whether you are just beginning to plan for the life ahead, building a financial and real estate portfolio or looking to tidy up your legacy this opportunity is unique and extremely valuable. We are very happy to have you join us at our Hindsight 20/20 Symposium as we combine our resources to develop our foresight for 2022 and beyond.

CLICK HERE to secure tickets today and view the speakers and topics below:

Matt Williams

Licensed Broker in OR, WA & ID

Bison Properties Team

Silvercreek Realty Group

Bisonproperties.com

matt@bisonproperties.com

503-345-2686

Topic Title: Shoulda, Coulda, Woulda…Prevention and Preparation in Real Estate

Though real estate investing can be considered a “passive investment”, we can maximize the profitability of our real estate investments by developing a plan and tweaking it along the way.  Nearly every investor has regrets. If there’s one thing the past two years have taught us, it is that ANYTHING can happen. Some of us flourished throughout the chaos while others struggled. What made the difference? What could have gone wrong with your investments had the economy tanked during the past two years? Was your estate and family ready if you had become incapacitated in the past two years? In this session, Matt will explore ways to analyze your preparedness for the next big shift and how you can maximize your return regardless of global chaos. 

Lane Lowry

Premier Mortgage

Business Development Manager / Loan Officer

NMLS# 1658229

Premier Mortgage Resources

208-949-0111

www.LoansByLane.com

Topic Title: Effectively Riding the Rate Wave

Mortgage rates are STILL at record lows and a lack of available inventory has been sustaining the housing market's booming demand. But now that the pandemic is subsiding & inflation is in full flux, rates are on the rise and are likely to continue to increase… but by how much?  The conflict in Ukraine – what will be the short-term and long-term effects on the markets and mortgage rates?  How should you interpret the federal government's rhetoric regarding the tightening of its monetary policy & what does that mean to mortgage rates, specifically?  

When do rates become too high to make investing in real estate cost-effective? What’s the sweet spot and how do I get started? What is the future of the housing market in the Treasure Valley, and can I still find equitable investments or has that ship sailed? We will do our best to answer these questions & more while also providing tips & information on programs investors use to increase their real estate portfolio.

Tyler McCuen

Financial Professional

The Prudential Insurance Company of America

206.930.2764

tmccuen@gmail.com

Topic Title: Failing to Prepare is Preparing to Fail

Unfortunately you can’t “fake it ‘til you make it” in investment. One of the very best things that we can do to set ourselves up for success is to prepare. Tried and true methodologies that have a proven track record of helping millions of individuals and families accomplish their financial goals help you stay the course. Because “staying the course” isn’t the same for everyone, financial planning is both personal and a crucial component of preparation. Analyzing income solutioning, life insurance, long-term care, tax and estate strategies, and other factors can be overwhelming. We use tools to find solutions for success! A financial plan helps put the puzzle together, and provide specific, relevant, and vital insight into your financial picture. Join us for an opportunity to start your plan!

Sheli Fulcher Koontz

Attorney at Law/Partner

Johnson May

208-888-9980

sfk@johnsonmaylaw.com

www.johnsonmaylaw.com

Topic Title: Estate Planning: Are You Leaving a Legacy or a Hot Mess? 

Nobody would have ever guessed we would have spent the last 2 years in masks, in isolation, and in a chronic state of uncertainty.  Perfectly rational people can behave irrationally after the loss of a loved one, especially in these chaotic times. Uncertainty + irrationality = hot mess for those you leave behind if you have misplanned or made no plan for your eventual exit.  Not having a complete estate plan is akin to not having a parachute for both you and your family as you age and at your death. In this session, Sheli will point out the mistakes and myths surrounding estate planning in Idaho and how you can leave a legacy instead of a hot mess.

Wyatt Johnson

Attorney at Law/Partner

Johnson May

208.384.8588

wbj@johnsonmaylaw.com

www.johnsonmaylaw.com

Topic Title: So, you think you want to do private loans?

Making private loans is a strategy that some people use to diversify their investing. Success or failure will depend on whether you set up the transaction correctly.  The issues we will examine will be:

1. Contracting nuts and bolts - loans must be documented, and these documents are not just words on paper.

2. Collateral and risk - liens and priority in collateral define the risk of a loan. We will give an overview on how to lien collateral (land, equipment, etc.) and who will be competing with you for that collateral.

3. Dumb ideas - its better to learn from others’ mistakes, rather than your own. I will share some of the bigger problems I have seen so you can avoid them.  

Jan Roeser | Labor Economist

Communications & Research

Idaho Department of Labor

208-332-3570 ext. 3639

Jan.Roeser@labor.idaho.gov

Topic Title:‘Huh, well this is Unprecedented! Idaho’s Economic Upshot” 

Content/Description: Over the past two years, we have heard and read that catch phrase ‘This is unprecedented…’ almost as a TikTok video running through our minds. As we stroll down memory lane and review the unprecedented changes that impacted our lives, our livelihood, and our wallets--what can we expect moving forward? What we know:

• Idaho is one of the states most profoundly impacted by the pandemic. 

• Idaho was the first state to recover jobs and move out of the recession. 

• Idaho has blown up with record population growth for the last six years. 

Hindsight is 2020 so coupled with data we can explore some scenarios of Idaho and its post-pandemic economy. 

How do I pay my mortgage during this Pandemic?

 Many of our clients have been impacted by the Coronavirus and have reached out to us for some answers. It's a very difficult time for both homeowners who can't pay their mortgage due to a loss of job or cut in hours. It's also very challenging for landlords who provide housing to nearly half of the population in the Portland area because just because rents stop coming in doesn't mean the bills stop as well. I've gone over some details of the impact on the current homeowners and landlords and tried to address several of the questions I've received from clients and friends. 

The US Federal Government is the only one who can chime in on the issue of mortgages and foreclosures because the lenders are federally regulated and also federally insured. For this reason, you shouldn't see any local or state conversation on this. However, even the federal government's reach is limited because the banks are privately owned. 

The federal government put a moratorium on foreclosures but this does not impact payments due by the property owner. The lender has the ability to continue collecting payments and late fees in accordance with their loan agreement. However, the Feds are putting a lot of pressure on banks to "work with" the mortgagee on the payments. They have also modified the payment guidelines on loans which are Fannie Mae and Freddie Mac backed which represents about 43% of the multifamily market. Click Here to go Directly to FHFA.Gov

Keep in mind that these are forbearance agreements between the parties and NOT required by the government because it's a violation of the US and Oregon State Constitution to interrupt contracts between two private parties. It is NOT debt forgiveness. It is a postponement of the payment for up to 12 months but more commonly 90 days. The payments are then due in the 4th month along with that month's payments. The timelines and repayment plan may vary by lender and the lender may then grant a longer payment plan.

There are also loan modifications available which take the missed monthly payments the property owner skipped and stack it on the back-end of the loan but it's a more complicated process and less common. This is usually done only for those who ABSOLUTELY cannot make the payments but have a great payment history. Most of these programs require applications PRIOR to being 30 days late and will vary on timeline for getting through the process.

There is currently a moratorium on foreclosures as well. However, foreclosures are actually a legal process that doesn't usually begin until a property owner is at least 120 days late on their mortgage. The credit impact on the property owner is the problem for investors and homeowners and there is no moratorium on credit reporting except on those Fannie Mae and Freddie Mac loans currently in a forbearance program. While a tenant may have the 90-120 days to skip rent without late fees or impact on their credit, that does not apply to the property owner or landlord when it comes to their mortgage. IF you are in an active forbearance plan or loan modification and pay as agreed you, most likely, will not have any negative impact on your credit within that timeframe because you are paying as you have realigned the loan agreement. However, it is ALWAYS good to confirm this in writing with the lender directly before beginning any forbearance program or loan modification. Click Here to view Equifax's Policy

I am currently recommending to my clients that they should contact their bank and begin the process of forbearance as soon as they know this may be needed. They should also continue to make mortgage payments as best they can each month until the program is complete or they are current with their mortgage. Try to avoid any 30-day late payments. Keep good notes on any non-payment of rents by tenants and be ready to provide documentation to the lender of such. We are encouraging all of our tenants to communicate with their landlord as soon as possible so they know the tenant is in need of their assistance and asking them to pay everything they can so they can get back on track as soon as possible. A tenant will have the 90-days to avoid payment without late fees or an eviction but only six months thereafter to catch up on rents with a payment plan. That's going to add quite a bit to their budget for quite a long time. 

Remain human within this crisis and try to understand both sides of the situation. Tenants do not want the additional stress of not being able to pay rent and having to catch up once the 90-day period is up. Your landlord still has a mortgage, insurance, property taxes, management fees and possibly utilities to pay within the period a tenant isn't paying rent. This situation impacts everyone in our communities and our ability to be understanding and remain compassionate to others shows the character that we as humans, neighbors and a nation possess. God speed!

Before we get too deep into the need to hire your own agent to purchase a home, you should keep in mind that there are several variables in any real estate purchase and every transaction is different. However, a majority of real estate transactions have more than one agent involved and there are several reasons why that is the case.

The idea of “Agency” in real estate is that each agent will represent either the Buyer, the Seller or Both! Some buyers believe they may have some benefit in using the seller’s agent in writing up an offer but this is, often times, not true. It’s important to recognize the many benefits of using an agent to represent you exclusively as you search for a home. We’ve outlined a few of the things that our buyers have experienced as benefits to using us as their representative.

You know your agent and your agent represents you. - Relationship is a big part of the process but you must be selective. Once you’ve identified your criteria, disclosed your priorities and laid all of the cards on the table, your agent can help you find the right property. Skipping around to multiple listing agents (or buyer’s agents for that matter) looking for a slight upper hand can lead to you retelling the same story over and over again and wasting quite a bit of time. Retraining an agent on what is important to you and viewing houses that don’t fit your needs can be time consuming and annoying. Spend a little more time selecting your Realtor and then remain committed to them.

Your agent is committed to you. - Many buyers don’t understand that it is not only the buyer that commits to the agent but your Realtor also commits to you. They get to know your specific needs and can identify properties which would be a good match. Being in the business, they may hear of something that hasn’t yet hit the market, come across a For Sale By Owner or preview a property that is a good fit and they will think of you. You won’t get this without a commitment on both sides. Agents can only sell each home to one person and handle so many clients at once. If you are a committed buyer, they’ll think of you first and make an extra effort to get you to the finish line. Ultimately, you’ll end up working as a team to identify the best property so don’t hesitate to sign a commitment letter for both sides once you’ve found your agent.

You have a choice. - Don’t decide on an agent on a “first come, first served” basis. You should select your agent based on their qualifications and not solely on your relationship outside of your home search. Though you may have a friend or family member who is licensed, they may not be the best fit or most qualified. How are they the right fit for you specifically? Do they know the area, have the time and provide the professionalism you need to access the properties you want to view? Can they negotiate the best deal? Do they have the resources and experience you need to get to the finish line? You should feel comfortable requesting references and getting to know them.

Your Realtor is a resource for you in all real estate matters. - You are not a Realtor and you have your own professional skill-set. People hire you based on that skill-set just as a Realtor is hired for their specific set of abilities. You should depend on your agent to advise you on what they do best...Real Estate! They’ve been through this process before and know the market conditions, documentation needed, offer process and know adjacent professionals to refer to you as needed. You’ll need that as you navigate this process together.

Your Realtor is on your side. - When you have an agent on each side of the transaction, you have someone looking out for your best interest. That’s critical in this professional climate because there is a lot that can go wrong in a real estate transaction. Your Realtor can help you navigate the process and timelines for acceptance, closing, home inspections, earnest money, possession, purchase price and lending. This is one of the more compelling reasons to use your own agent as opposed to working with the seller’s agent. A Realtor who has no relationship with the seller can properly advise you on possible property deficiencies, drawbacks to the home and opportunities for negotiating price and terms. They are your partner in this process and you should use it!

A buyer’s agent is cheap if not free to the buyer. - In the Portland-Metro area, it is common for the seller to pay the commission for both their agent and the buyer’s agent. This is called “Buyer’s Agent Commission” or the “Cooperating Broker’s Compensation”. The reason behind this is that buyers have more expense associated with the closing of the home such as lender fees, title fees, escrow fees and pre-paid taxes and insurance. It is also more likely that the seller has equity in their home so the impact on the seller’s out-of-pocket expense in paying commissions is less. As a buyer, free is good….until it costs you. A “free service” can cost a buyer quite a bit if the agent you pick is the wrong agent. Be selective but realize that you really do have an advantage in having someone in your corner who is licensed, regulated and committed. Be willing to pay for the right representative who provides value and assists you on the biggest investment of your life.

Buyers who have their own Realtor are at an advantage overall. Real estate is an industry which allows you an opportunity to have professional representation at a very affordable rate. That is not the case in all industries so buyers should take advantage of that. Search for the right Realtor and be selective. Once you make a decision, be loyal and expect a mutual commitment.

If you are looking for a Realtor who knows the business and is committed to their clients, we hope you will consider our team. We have hundreds of real estate transactions under our belts and are excited to help our buyers get the most out of their real estate buying experience. We’re ready for the challenge and committed to helping you find your next property. Call or email us today!

Bison Properties Team

w/ Garcia Group Real Estate Services

info@bisonproperties.com

503-208-2991

www.bisonproperties.com

Click here to RSVP!

Many of our residents and clients looking to buy a home have asked us to go over the details of how making an offer works. Though there are several steps, it's actually a pretty straight forward process if you're familiar. We would like to clarify a few of the steps and highlights in the process. There are several things we do as your representative within this process but below we list the crucial steps in the order you should be aware.

1.Line up your financing.

A pre-approval letter is paramount to finding and securing the right property for you. This should be your very first step so that when you find the right home, we can use that to help you secure it.

2. Identify the home.

It's never too early to begin looking. Starting out early allows you to be familiar with the neighborhoods, condition of the homes and price-point of what you are looking for. Our website has an excellent search feature which allows you to define your own criteria, area and amenities as well as how often you are sent updates. Please feel free to set up a search HERE.

3. Make an offer.

Once you view potential houses, find the right fit and have your financing lined up, it's time to take the plunge. The expiration of the offer is negotiable, but we recommend having it expire within 24-48 hours to avoid the seller notifying other interested parties. The seller can reject the offer, accept it as is, or propose different terms or conditions to your original offer.

4. Negotiate the terms of the agreement.

 Either party can withdraw from negotiations until both parties have signed a contract with the agreed upon terms and conditions. Once this is signed, that establishes the day of "Mutual Acceptance". Several timelines begin on that day.

5. Earnest money is deposited.

The earnest money is the amount of money which the buyer commits to put down as a sign of 'good faith' to the seller and risks if they do NOT follow through with their agreement to purchase. Earnest money amounts and timelines are negotiable but are typically 1-3% of the purchase price and due within 3 business days of mutual acceptance.

6. Inspections are scheduled and conducted.

The inspector works for the buyer specifically to give them a 3rd party opinion of the overall condition of the home. Inspections include(but are not limited to) Whole house inspections, Radon Test, Sewer Scope, Lead Based paint testing and and Oil tank locate. Though the timeline is also negotiable, the typical timeline in our market to complete the inspections AND any negotiations specific to condition or repairs is 10 business days from mutual acceptance. This sometimes requires getting bids for work needing to be completed, so it is important to schedule these right away.

7. Review Property Disclosures.

The buyer has 5 business days from delivery of the property disclosures to review the contents and either accept them or revoke the offer based on the contents.There are few exceptions, but a majority of homeowners are required to fill out and deliver property disclosures to the buyer. If the seller and/or their agent fails to deliver the property disclosures and are not exempt, the buyer has the right to terminate the transaction and retain their earnest money.

8. Order Appraisal.

The appraiser works for the bank to verify that the value of the home specific to your down payment is in line with the offer (i.e. 97%,80%, etc.). This can take anywhere from one week to three weeks, so we want to order the appraisal just after we have completed the inspections and any negotiations on repairs. This timeline allows us to complete the appraisal in time to meet the closing deadline with the knowledge that any repairs we feel needed to be completed have been addressed.

9. Lender Processing and Underwriting.

The lender completes a final review of the entire file including all financial data, contract and property paperwork and the appraisal with the underwriter. They then prepare loan documents and disclosures for the buyer to sign and send the buyer a breakdown of charges before signing the loan documents.

10. Wire money for down payment and sign loan documents.

This happens a few days prior to close.

11. Closing and Possession.

Now you're a homeowner!! You would typically get the keys around 5pm on the day you close unless you have made another agreement with the seller. We'll arrange to get you keys and meet you at the house or somewhere more convenient.

There is quite a bit more to it than these 11 steps, but these are the most pertinent details that require either action or understanding of the process from you as a buyer. I hope you have found this useful as you begin your search. please don't hesitate to reach out to us directly at info@bisonproperties.com, 503-208-2991 or us our website to find your next home. www.bisonproperties.com.

The Latest Bison News and Market Updates

Come out to the Lucky Lab on March 22nd to enjoy some food, beverages and learn different strategies for Real Estate Investments. Whether you are a first-time investor or ready to plan a full-scale investment strategy, we'll give you ideas to take it to the next level. Completely informational and no sales pitch. We'll cover investment loan products that are currently in the market as well as what to inspect from your investment, updated market conditions and best practices in finding and stabilizing properties. Details in the flier below so plan on joining us with an RSVP today. Info@bisonproperties.com