When I was growing up, my parents owned a Scandinavian food store on Market Street in Ballard. In the 70’s and 80’s you could walk down Market Street, smell the lutefisk and lefse being made, and listen to Norwegian and Swedish being spoken on every street corner. You could also find great real estate deals without a tremendous amount of effort.  

My dad’s business and life plan was to take the small nut he made during the busy Christmas season at the store and invest it in real estate. He wasn’t able to do it every year but he did it often enough to reach his goals. Maybe my dad was lucky; maybe there was, objectively, more opportunity in the Seattle area 30 years ago. Whatever the case, it seemed my dad could always find an old house or duplex for sale in Ballard that, with a minimal downpayment, would immediately cash flow when rented. 

For the last couple of decades the “great deals”, while present, were primarily taken advantage of by those who had an abundance of time, money or skill to devote to finding and profiting from the available opportunities. Finally, the tide has turned, and there is, once again, an opportunity to find great deals without needing to turn over every stone on the beach. Not only are many sellers offering favorable terms and prices, but so are scores of lenders who need to get rid of property they have obtained through foreclosure. While not every deal will immediately cash flow with minimal down, I would expect this to trend in favor of buyers in the not too distant future as more and more foreclosure property hits the market. 

My dad’s Ballard, with its crusty fishermen and Scandinavian persona, might be gone, but its real estate deals are coming back. And, by the way, you can still get your lutefisk and lefse at Olsen’s Scandinavian Foods on Market.

 -Eirik

About 11 years ago my wife (Amy) and I were thinking about starting a family. Most of our conversations were focused on deciding whether or not it was the “right time” in our lives. Amy had just started medical school, life was busy and finances could always be better. In the end we decided not to wait, as years could go by before the planets would align perfectly. We were simply not willing to delay the gratification we expected to enjoy as parents.

Many first time home buyers are currently looking at the real estate market with a certain amount of trepidation, not much different from what I  felt 11 years ago. Is this the right time to buy? Has the market hit bottom? Should we wait until finances are better? Should we wait a few years until the planets are better aligned?

My advice for first time home buyers is to focus your attention on making sure you can afford your monthly mortgage payment, and less on trying to predict the market. If you are confident you can afford your payment now and into the future, and you expect to stay in your home for at least five years, then predicting the market takes on much less significance.

While your home is certainly an important financial investment, it is also (and maybe more importantly) an investment in you, your family and your spirit. The fact that this “value” can’t be quantified doesn’t diminish its significance.

So find a home you love, make sure you can afford it, and start enjoying it now!

- Eirik