K. V. *
JU LY 15,1998
Page A6
(Elie Ç ortlanb ©bseruer
Hg**
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
I
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