The final podcast in the Smart Real Estate Investing series is here!
Today we wrap up the series with a discussion on the invaluable expertise that a realtor brings to your investing. Let’s take a look!
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Smart Real Estate Investing – Part 11
René Nelson: Marcia, in the last show, we talked about my expertise, but now let’s talk about your expertise as a real estate broker. What’s your sweet spot?
Marcia Edwards: Well I love houses, simply put, but let’s talk a little deeper than that, what I like to do is help people navigate long-term planning for their homes and their lives and their families, and if it’s building a home, selling a home, buying a home, it’s interesting and it’s a dynamic right now where there’s so many opportunities for sellers and not enough for buyers that people are turning to things like land development. If you have a house on an acre, a small 1,200 square foot house on an acre, what do you have as a savings account in that land? Could it be developed? That’s the conversation I enjoy having too.
René Nelson: Yeah. That is one of your strong suits that I have no knowledge. When somebody says, “Should I develop, could I develop?” I’ve got architects and different people that are industry-related, but you really understand that chunk of land and how you can get your highest dollar out of it.
Marcia Edwards: Yes, it is raw land and there’s development costs that we need to understand, and then the developer sells it to a builder, then a builder puts a home on it. So you gotta look at the end-user, the buyer, what they’re willing to pay back into the raw land, and each person that has their hands on it and helps develop it is going to want a little profit, so there are some numbers to look at.
René Nelson: And are you seeing much development happening right now?
Marcia Edwards: No, in fact we’re way behind last year for new residential permitting in the city of Eugene. It’s fascinating, but at the same time you think, “Well the supply is so low, you’ve gotta put more supply out there builders. It’s gotta be irresistible.” But the cost of materials right now and the scarcity of land available locally has really made builders resist that.
René Nelson: And I haven’t seen many people go for adding the ADU unit or the additional dwelling unit in their backyard, like the city thought that that would help add for the density. Have you seen that?
Marcia Edwards: Well we haven’t seen in the city of Eugene, because they haven’t released the rules to the game. So by June 30, they’re going to have to say, “These are the rules to the ADU on R-1 zoning.” ADUs, auxiliary dwelling unit, put a separate unit on your traditional single-family residential lot. It’s a thing, we’ve gotta make it available, there’s a lot of opportunity for housing people, and that’s the concern in an affordable way with ADUs.
René Nelson: Yeah. For those of you that don’t know, Marcia grew up in a real estate family. Her father started Rams Real Estate in 1976?
Marcia Edwards: ’67.
René Nelson: ’67? Wow. So she’s born and raised in it.
Marcia Edwards: Thanks, René.
If you enjoyed listening to the podcast, expert René Nelson is just a 15-minute discovery call away from answering your questions. Give Pacwest a call today.