Portland observer., July 15, 1998, Page 6, Image 6

K. V. *
JU LY 15,1998
Page A6
(Elie Ç ortlanb ©bseruer
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SIN
PCRI: Portland Community
Reinvestment Initiatives, Inc. History
fo r b a n k ru p tc y .
T h is p u t 3 5 0 f a m i l i e s a t
r is k o f lo s in g th e ir h o m e s .
In o r d e r to a v e r t t h i s p o t e n ­
t i a l c a t a s t r o p h e , th e c o m m u ­
n i t y d e c i d e d to a c t - th e y
In 1 9 9 0 , T h e O r e g o n i a n
c r e a t e d a n u p r o a r in P o r t ­
la n d , O re g o n b y p r in tin g a
s to r y e n t i t l e d , " B l u e p r i n t f o r
a S lu m .” T h is s to r y e x p o s e d
th e a b a n d o n m e n t o f N o r t h ­
e a st P o r tla n d by th e c i t y ’s
m a jo r p r i v a t e l e n d e r s . S o m e
le n d e r s w e re n o t m a k in g
lo a n s o n p r o p e r t i e s in N o r t h ­
east P o rtla n d , le a v in g a re a
re s id e n ts w ith o u t a m e a n s o f
p u rc h a s in g h o m e s. T h e s to ry
a lso to ld o f a s lu m lo r d w h o
c a p ita liz e d on th is s itu a tio n .
As rea l e s ta te p ric e s d ro p p e d
in N o r t h e a s t P o r t l a n d , t h i s
In v e s to r/B ro k e r p u rc h a s e d
n u m e ro u s p r o p e r tie s an d
s p e c i a l i z e d in m a n a g i n g s u b ­
s ta n d a rd r e n ta ls a n d s e llin g
hom es on fra u d u le n t c o n ­
t r a c t s to u n s u s p e c t i n g f a m i ­
li e s .
S h o r t l y a f t e r th e n e w s p a ­
p e r s to r y a p p e a r e d , th e A t­
to r n e y G e n e r a l ’ s O f f i c e f i l e d
a l a w s u i t th e I n v e s t o r / B r o ­
k e r, w h o im m e d ia te ly f ile d
fo rm e d a n o n -p ro fit, c o m m u ­
n ity d e v e lo p m e n t o r g a n iz a ­
tio n , P o r tl a n d C o m m u n ity
R e in v e s tm e n t I n itia tiv e s ,
In c. (P C R I).
P C R I w a s f o r m e d to a c ­
q u ir e th e p r o p e r t i e s . T h e
o r g a n iz a ti o n ’s p rim a ry g o a ls
w e r e to p r e s e r v e th e r e n t a l
u n its ,
and
to
p ro v id e
h o m e o w n e rs a re a l o p p o rtu ­
n i t y to b u y t h e i r h o m e s .
T h a n k s to t h e h a r d w o r k o f
P C R I’s S ta ff and B o a rd ,
c o m m u n ity m e m b e r s , e l e c t e d
o f f i c i a l s , a n d th e p a r t n e r s h i p
o f U . S . B a n k o f O r e g o n , b o th
g o a ls h av e b e e n re a c h e d .
E ig h ty -th re e fa m ilie s b e ­
ca m e h o m e -o w n e rs an d 272
p r o p e r tie s are b e in g r e f u r ­
b is h e d an d r e h a b ilita te d as
a ffo rd a b le r e n ta ls .
T h e m o st im p o r ta n t a s p e c t
o f P C R I’s a ffo rd a b le h o u s ­
in g d e v e l o p m e n t e f f o r t s , is
th e p e o p le w h o m a k e o u r
r e n ta l u n its th e ir h o m e s . W e
b e l i e v e t h a t th e t e n a n t a n d
la n d lo rd a re p a rtn e rs an d w e
s t r i v e to w o r k w ith t e n a n t s
in f o r m i n g p o s i t i v e r e l a t i o n ­
s h ip s . W e are c u r r e n tly
w o r k i n g w ith P C R I t e n a n t s
and
th e
c o m m u n ity
on
p r o je c ts th a t s p e c if ic a lly a d ­
d r e s s te n a n t n e e d s , s u c h as
a f f o rd a b le c h ild c a re .
Playing Monopoly: Is This
The Game For You?
by R ose M arie D avis of
A dvantage R eal E state
W e tend to think o f real estate as
the "A m erican D ream ” o r “a tax
shelter for the rich”, w hen in fact it
is a gam e that each o f us m ust play
w hether w e are renting, purchasing
our first hom e or buying that invest­
m ent property.
The only real difference betw een
buying and renting is w h o ’s paying
the m ortgage and seeing the tax
benefits o f ow nership.
Real E state as an estate building
tool can be used very effectively.
Investors usually com e in tw o cat­
egories. The P rim a ry In v e sto r is
one who is able to speculate on what
the m arket w ill be doing in a par­
ticular neighborhood o r type o f
property. H e/she is m ore w illing to
take a chance for a higher return on
his/her investm ent. T he S eco n d a ry
In v esto r is the one w ho has seen
som e positive gains in a particular
neighborhood or type o f property.
U sually looking for a sm aller, less
risky type o f investm ent.
M ost o f us w ould fall into the
category o f the Secondary Investor.
W e are m ore likely to purchase a
single fam ily o r sm aller m ultiplex
properties. The goal is to have only
a few rental properties that have a
positive cash flow. S m aller 1 -4 unit
m ultiplexes can be financed with
the sam e type o f financing that m ost
o f us used w hen we purchased our
prim ary residence if we choose to
live in one o f the units.
W hen deciding on this type o f
investm ent property, it is important
to rem em ber w hat your goal, time
and skill level is. Single family units
can be easier to rent but w hen they
are vacant, you have 100% vacancy.
If repairs are needed, m ortgage pay­
ments, taxes and insurance are due,
you m ust use your funds or money
y o u ’ve saved to m ake any necessary
repairs or paym ents. If y o u ’ve pur­
chased a m ultiplex and one o f the
units becam e vacant the financial
consequence will not be as devastat­
ing. If you are seeing a positive cash
flow, it is a good idea to put aside a
reserve from your profits for ju st
type o f occurrence.
W hen looking for this type o f prop­
erty, scrutinize the property as though
you were going to be living in it. (Keep
in mind that a tenant can be harder to
please because h e’s going to be look­
ing to you for all repairs.) Have a home
inspection done before buying ifyou' re
not sure what you’re looking at.
I f your goal is to build your estate
using investm ent property but you
d o n ’t have tim e for the daily hands-
on m anagem ent required, you can
hire a property m anagem ent com ­
pany to oversee the m aintenance,
tenant contact and civil filings if
necessary. A good property m an­
agem ent com pany should provide
for you a m arketing assessm ent o f
the property. The m arketing assess­
m ent should include inform ation
such as, which repairs should get the
m ost income from the property, a
potential income breakdown (to help
you determ ine w hether you w ill be
in a negative or positive cash flow
position) and a clear list o f things
that will be required o f you and the
property m anagem ent com pany.
A property management company
m ay cost you about 7-10% o f the
m onthly rents collected but it can be
well worth it, especially if you have
a problem tenant.
K eep in m ind that single and
m ulti-fam ily units are ju st two types
o f investments. There are mixed use,
larger multiplex units, com m ercial
and industrial investm ents. V acant
land is also a potential source o f
income but can have its own set of
m anagem ent needs and advantages.
As you can see, w hatever your
tim e and skill level, playing the real
estate m onopoly gam e can help you
build your estate. Call Rose M arie
Davis, Broker/O w ner o f A dvantage
Real Estate and D evelopm ent Ser
v ices(503)287-7167 for additional
inform ation about this article o f in­
vesting in this area.
Advertise Your Home In
(Ebe IJ o rtla n b (O bserver
Coll (503) 288-0033
(Tlje
^ a rtla n ò
Oî)bseruer
W HEN AND IS IT NECESSARY TO GARNER
THE SERVICES OF A REALTOR
ta in an a g e n t to h e lp th e m in th is
u y in g y o u r firs t h o m e
p r o c e s s . F o r tr u t h ’s sa k e 1 m u st
m ay n o t b e a h a rd ro ad
a ls o m e n tio n a R e a lto r is an a s ­
b u t it c a n b e a r e la ­
tiv e ly lo n g an d in v o lv e d se o t n to
e. h a v e b u t th e re a re c a se s
w h e re th e are n o t n e c e s s a ry . It
W e h av e le a rn e d ste p s su c h as
is tru e so m e d e a ls c lo s e d ir e c tly
g e ttin g th e h e lp w e n e e d to
fro m b u y e r to s e lle r e v e ry day .
a c h ie v e f i n a n c i n g , a n d h o w
H o w e v e r th e fa c ts re v e a l m o st
m uch w e n e e d fo r a d o w n p a y ­
m ent. T he q u e s tio n s till re m a in s
o f w h en a n d is it n e c e s s a ry to
g a rn e r th e s e rv ic e s o f a R e a lto r.
W h at is th e ir p u rp o s e in th e p r o ­
ce ss an d w h a t is th e c o s t in h ir ­
ing su c h a p e r s o n ? T h e a n s w e rs
to th e se q u e s tio n s d if f e r s o m e ­
w h at d e p e n d in g i f a p e rs o n is
b u y in g o r s e llin g a h o m e . In th is
se g m en t w e w ill a p p ro a c h th in g s
from a b u y e r ’s s ta n d p o in t. W e
w ill a t t e m p t to d e t e r m i n e
w h e th e r R e a lto rs a re a v ita l to o l
B y C hris G linn of
in h o m e b u y in g o r s im p ly m o n e y
M illenium P roperties in
h u n g ry m id d le m en ju s t o u t fo r a
N ortheast P ortland
buck.
W e m u st firs t d e te rm in e w h a t
a R e a lto r r e a lly is. A R e a lto r o r
tr a n s a c tio n s c lo s e w ith th e a id e
a g e n t is an in d iv id u a l w e h ire to
o f a R e a lto r. L e ss th a n 20 p e r ­
re p re s e n t u s w h e n w e d e lv e in to
c e n t o f h o m e s “ F o r s a le b y
a field in w h ic h w e h a v e lim ite d
o w n e r ” a re s u c c e s s fu lly so ld by
k n o w le d g e . B e it a la w y e r fo r
th e o w n e rs . O k a y , y o u n e e d a
legal m a tte rs, an in su ra n c e a g e n t
R e a lto r b u t h o w d o e s o n e go
fo r c o v e ra g e is s u e s , o r e v e n a
a b o u t c h o o s in g an a g e n t? S h o u ld
se c re t a g e n t to h e lp us g a in in ­
y o u h ire th e o n e w ith th e b ig g e s t
fo rm a tio n w e a re o th e rw is e n o t
n a m e o r th e b ig g e s t c o m p a n y ?
e q u ip p e d to a c q u ire . A R e a lto r
S h o u ld y o u c h o o s e th e o n e y o u r
o r rea l e s ta te a g e n t is s im p ly a
f r ie n d c h o s e o r th e o n e w h o
p e rso n w h o is a d e p t in th e a re a
k n o c k e d o n y o u r d o o r? T h e a n ­
o f re a lty o r p ro p e r ty a c q u is i­
s w e r to a ll th e s e q u e s tio n s is
tio n . T h ey a re p e o p le w h o h av e
y e s , b u t o n ly i f y o u a re tru ly
ta k e n th e e x tra tim e to e d u c a te
c o m fo r ta b le w ith th a t p e rso n .
th e m se lv e s in th is fie ld to h elp
Y o u se e R e a l to r ’s p rim a ry o b ­
o th e rs w ith lim ite d o r n o k n o w l­
j
e c ti v e s h o u ld n o t b e to s e ll you
ed g e in th is a re a . In tu rn R e a l­
a h o m e b u t to g e n u in e ly s e ll
to rs r e c e iv e a c o m m is s io n o r fee
th e m s e lv e s to y o u . Y o u m u st b e
fo r th e ir s e rv ic e s .
c o n fid e n t in th e ir in te re s t in y o u r
W h e n s o m e o n e d e c id e s to
n e e d s a n d w a n ts an d th e ir a b il­
m a k e th e la r g e s t p u r c h a s e o f
ity to m a k e it h a p p e n . O n ly y o u
th e ir liv e s , e s p e c ia lly fo r th e
k n o w w h a t it ta k e s to p u t y o u r
firs t tim e it is o n ly w is e to re -
B
tr u s t in s o m e o n e to a s s is t in th e
h o m e b u y in g p ro c e s s .
A s a ru le m o st R e a lto rs w o rk
as a g e n ts fo r th e s e lle r o f th e
p ro p e rty . T h is d o e s n o t le a v e
b u y e rs o u t in th e c o ld . L aw r e ­
q u ire s R e a lto rs to b e f o rth rig h t
an d h o n e s t to a ll p a r tie s in ­
v o lv e d in an y tra n sa c tio n . T ric k ­
e ry o r d e c e p tio n is g ro u n d s fo r
s ti f f d is c ip lin a r y a c tio n . T h e re
a re c o n tra c ts b e tw e e n a g e n t an d
b u y e rs c a lle d " B ro k e r B u y e rs
a g re e m e n ts . T h is is a c o n tra c t
w h ic h e n a b le s th e b u y e r to h av e
an a g e n t w o rk o n th e ir b e h a lf.
T h e re a re p ro s a n d c o n s in th is
s o rt o f a rra n g e m e n t fo r b o th
p a rtie s an d th is s h o u ld b e d is ­
c u s s e d in d e ta il b e fo re su c h an
a r r a n g e m e n t is e n te r e d . T h e
u p sid e to b u y in g a h o m e is th e
a g e n t’s w o rk is re la tiv e ly fre e
to th e b u y e r. R e a lto rs e a rn c o m ­
m is sio n s th ro u g h th e fu n d s g e n ­
e ra te d b y th e s a le o f th e p r o p ­
e rty o r in e s s e n c e th e s e lle r p a y s
th e a g e n t. H o w e v e r it is v e ry
im p o rta n t to re m a in lo y a l to
so m e o n e w h o is in v e s tin g th e ir
tim e fo r y o u a n d u n d e rs ta n d s
th e ir liv e lih o o d d e p e n d s o n th is.
So are R e a lto rs ju s t m o n e y
h u n g ry m id d le m en ju s t o u t f o r a
b u ck ? M ay b e so m e are b u t ju s t
lik e an y o th e r p ro fe ssio n th e re
are g o o d o n e s an d b ad o n es. T he
c o n s u m e r m u st u se g o o d ju d g ­
m en t an d co m m o n se n se w hen
c h o o s in g an a g e n t. R e fe r ra ls
from o th e rs are alw a y s a g o o d
p la c e to s ta rt fo llo w e d by an a c ­
tual in te rv iew to d eterm in e i f this
is the rig h t p erso n fo r y o u r needs.
R e m e m b e r R e a lto r s a re j u s t
p e o p le w ith a jo b to do an d ju s t
m ake c e rtain you ch o o se the right
o n e to do it. It c o u ld m ak e a ll th e
d iffe re n c e in th e w o rld . B e w ise.
PDC Purchases East Burnside Properties
The Portland D evelopm ent C om ­
m ission yesterday approved the p u r­
chase o f tw o parcels o f land at the NE
com er o f M artin Luther King Jr. blvd.
and Burnside that are o f m ajor im ­
portance to the redevelopm ent and
revitalization o ftheC entralE astside.
The property will be purchased from
Phillip Siegelbaum for $650,000.
Redevelopment ofthiscom erispart
o f a larger planning process for the East
Burnside area that includes the area
betw een A sh and Everett and the
Burnside Bridge and 6th Avenue. Envi­
sioned for this area is mixed-use devel­
opment which may include office, re­
tail, residential and industrial uses.
“This property is essentially lo­
cated at a gatew ay to the entire C en­
tral Eastside Industrial area and will
serve as a catalyst for future private
investm ent elsew here in the district,”
said PDC C hairm an, Carl Talton.
“ W e look forw ard to continuing to
w ork closely w ith the com m unity,
lo cal b u s in e s s an d th e C e n tra l
Eastside Industrial Council to d e­
velop a plan that m eets broader ob­
jectives for area revitalization and
job developm ent.”
Pedestrian - Friendly Gateway Neighborhood
TGM (Transportation Growth Manage­
ment) grant awarded to the Portland
Development Commission. The pro­
cess follows up on Katz’s Slate o f the
Citypledgetoprotectandimproveneigh-
botfrood livability by concentrating de­
velopment in the central city, along main
streets, town centers and transit lines,
and expanding the city’s efforts to pro­
vide more housing andjob opportunities
in Gateway, Hollywood and St. Johns.
‘ ‘What we want to do is to create a tool
kit for neighbors, business owners, and
developers that will help us transform
Gateway into a thriving, healthy com­
munity,” said Katz. “As we have been
doing in the successful Lloyd District
M ay o r V era K atz has started
strategizing with Gateway neighbors,
business, property owners to turn the
area into a revitalized, pedestrian-
friendly neighborhood.
“In an area with transit access second
only to downtown, and 300,000 people
within a five-mile radius, we have a
tremendous opportunity here in Gate­
way to create a second urban center lor
the region,” said Katz. “Gateway is an
example o f where we can use the pres­
sures o f growth to transform areas that
need it the most, taking advantage o f
existing infrastructure.”
The planing will happen thanks to a
Oregon Department o f Transportation
and River District redevelopments, we
will work to promote transit connectiv­
ity, identify capital improvements, and
opportunities for mixed-use develop­
ments.”
Right now, one o f the main public
attractors is the Gateway Transit Center
Park & Ride, a parking lot for som e400-
cars, which Katz sees as ripe for devel­
oping more useful amenities as she men­
tioned in her State o f The City Address,
from day care, to dry cleaners, or even
housing. Dick LoffelmacherofPacTrust
Realty who manages the adjacent Gate­
way M all, said he’s interested and had
even approached Tri-Met about doing a
mixed use development at one time.
PCRI Tenants
Study V olunteers Needed
HIGH BLOOD PRESSURE
'T ?
PCRI tenants represent the diversity o f North
and Northeast Portland and the city as a whole. Many r of PCRI’s
properties are home to single parents and people with special needs.
PCRI has worked to form partnerships with agencies representing special needs,
including the Housing Authority o f Portland.
African American volunteers are needed fo r a 30 week hypertension research
medication study. If you are 18 years or o ld e r w ith high blood pressure and in general
good health, you may qualify. V oluntee rs w ill be thoroughly screened by the
research team and their private p h ysicia n s consulted. Study medication,
study-related clinic visits and testing w ill be provided at no charge for these who
qualify. Reimbursement for travel w ill be g iv e n . For information call 228-3217,
M on.-Thur. 9 to 4, F r i. - 9 t o 1 .
Clinical Research Group of Oregon
1221 S.W . Y a m h ill, S u ite 3 0 3
P o rtla n d , O r e g o n 9 7 2 0 5
•How to Participate
I
PCRI accepts applications continuously. Prospective tenants must earn 80% or
less o f the County’s Median Income. Many of PCRI’s units are specifically
targeted to families at a much lower income level. We do not discriminate on the
basis o f race, color, religion, disability, national origin, familial status, age, sexual
orientation or source of income.
or i someone you know is interested in renting a PCRI
k
l If
i you
y vu v
property, please call or stop by the office to learn more
about how to apply.
PCRI is located at 4829 NE. Martin Luther King
Jr. Blvd/ Wygant. Call (503)288-2923 or fax them at
(503)288-2891. e-mail:PCRI@teleport.com
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