Leading by Example, Leading in Real Estate by Hank Seipp

Leading by Example, Leading in Real Estate by Hank Seipp We are the Gold Standard team of Real Estate professionals that doesn't settle for getting the job d

Berkshire Hathaway Home Services offers a wide variety of real estate services with focuses in Commercial and Residential Real Estate Sales and Commercial Leasing throughout Washington State.

I bet you didn’t knowI was born a twin in 1967 in Aberdeen Washington at St. Josephs hospital. Each of us weighed in at ...
09/13/2021

I bet you didn’t know

I was born a twin in 1967 in Aberdeen Washington at St. Josephs hospital. Each of us weighed in at over 7 lbs and were over 21 inches long.

We moved when I was a child with my 4 siblings Willie (the oldest) Anna (the oldest female) Marilyn ( the middle child) then myself and Bob the twins.

We moved to Spokane when I was 3 years old, I attended Stevens Elementary until 4th grade then moved to the family farm where I attended fourth grade at Garden Springs elementary then went to 5th grade at Windsor before attending middle school and high school at Cheney.

My father had owned the farm since he was a child in the 1940’s and it has since passed to my sister Marilyn who lives their today.

Growing up back then had its challenges, however, was not a bad way to live learning how to milk cows, and process food you raised.

We built our own home using recycled lumber from teardowns and worked the land. We grew up with a strong sense of family and understood that using a little teamwork could get the greatest results.

I remember being a young man when I was on my own and had to fight and struggle like many young men do from poverty, and lack of resources to create my own life.

It’s what we were raised to do, it was expected. We understood that there were not going to be any freebies and if you wanted something, you were going to earn it. No handouts, no first cars, no bikes unless you earned it and bought it yourself.

We were taught skills and knew how to raise a garden, process our own food, fix things and learned from a skilled carpenter how to clean up a job site and a lot of other skills that came in handy later on in life. The most important thing we learned was “How to work”. We learned to question things and never take a person at their word and, knew life was not going to be easy.

I came from a lineage of fine German Immigrants that came to the United States in the 1800’s some staying back east and some immigrating to the west where I am today and beyond. The Seipp’s were know as hardworking people who never shied away from the work for the reward.

“We learned there was tremendous value in hard work.”

While my direct descendants were working to make a place in this world here in Spokane and, in Canada my Cousins were working hard in the East. One created an empire making beer and built a company called the Conrad Seipp Brewing company in Chicago Illinois.

Conrad Seipp, an immigrant from Hessen Germany, started making beer in Chicago in 1854. His brewery was one of the few to survive the Chicago fire. During “The Great Rebuilding,” a period of intense innovation in urban development, business and architecture, Seipp provided Chicago his beer. By the mid-1870s, Seipp was a dominant player in the Chicago and national beer market, producing over 250,000 barrels annually. In his prime, Seipp was a pioneer of modern brewing. His innovations included new techniques in refrigeration, distribution, and marketing. Conrad Seipp died in 1890 and members of his family continued to run the company. Grain and coal shortages during World War I impacted Seipp’s production before the enactment of Prohibition in 1919 devastated the beer industry. Seipp operations shut down in 1933, just before Prohibition was lifted. The brewery was destroyed that year to make room for Michael Reese Hospital.

Seipp’s direct descendant is bringing back the Conrad Seipp Brewing Company and is working in collaboration with Metropolitan Brewing to recraft one of Seipp’s most popular brands: Seipp’s Extra Pale which is a pre-prohibition pilsner. Have a sip of Seipp’s and taste Chicago’s history.

Laurin Mack of Chicago is a distant cousin of mine and direct descendant of Conrad Seipp!!
Hat’s off to Laurin for taking another run at it!!

In my own history, I had many opportunities to achieve, and had a father, uncles and aunts as well other mentors that I relied on to teach me what I didn’t know. How to earn a buck myself.

I remember having a call with my Uncle Vince who was a real estate professional locally and very well known for being the president of Alvin J Wolff and trained Fritz Wolff Sr while Fritz was about to take the next step in his life creating an empire called the Wolff Company. Fritz by the way is an amazing man who raised amazing kids that I have tremendous respect for. The Wolff Company by some estimates is valued at over 8 billion dollars.

Early on in my adult years, I knew that is what I wanted, and let Uncle Vince bend my ear and took his valuable insight, held it tight as he would expect me to do.

I trusted him and knew what he meant when he said you need to learn all about apartments before taking that next step. Start at the bottom with the worst properties and make them communities again, then take each step, learning while you are earning. I did just that.

Now we are at 2021 and I have worked all of my adult life in the apartment industry learning the nuts and bolts from the best in the business to where I am an industry leader and own a few other businesses as well.

Please check out Trovato Interiors at 9919 E. Sprague for instance and while you are there say hi to Susan. (An inspiring visionary herself)

Today I am asked all the time what I am going to do next. After all, I have earned a lot of awards along the way and made some decent money as well. My answer is, I really love what I do. Apartments are the game of choice, and I will at times take bread and butter deals along the way. I will always probably be an apartment guy and will do some development and take on additional challenges.

If you want to learn the business of real estate, Learn and live by a set of standards that sets you apart, makes you clearly unique and exposes the talents you possess and make sure to shoot straight. Always.

Never say, that looks like a good idea. Never give the quick answer to land a deal or take clients from others. Give people the facts only, and then back it up.

Be ethical. Be Kind and, Fly Straight!!

Until Next Time

New listing by one our brokers at BHHS!!Have know Jake for a few years now and he is a good guy to work with!!
08/30/2021

New listing by one our brokers at BHHS!!

Have know Jake for a few years now and he is a good guy to work with!!

10402 E Valleyway Ave | Spokane, WA

Hey Guy's!!Check out this listing by one of our agents!!
08/27/2021

Hey Guy's!!

Check out this listing by one of our agents!!

5404 N Northwood Dr Spokane | 4 BD | 3 BA | 3,366 SF | BUILT 1975

Part 5 Homeless or??138 individuals, persons counted were unsheltered952 individuals, persons counted were sheltered696 ...
08/16/2021

Part 5 Homeless or??

138 individuals, persons counted were unsheltered

952 individuals, persons counted were sheltered

696 individuals, were in Emergency Shelters

256 individuals, were in Transitional Housing

61 percent of all persons were male,

39 percent were female

203, or nineteen percent, of all persons counted were under the age of 18

73, persons counted were between the ages of 18-24

814, persons counted were over the age of 24

71 percent were in households without children,

27 percent were in households with adults and children,

2 percent were in households with only children

Homelessness results from the interaction of complex and dynamic circumstances. During the most recent point-in-time count in Spokane County, the most commonly cited reasons for homelessness included: economic hardship, divorce, and death of a spouse.

According to the National Coalition to End Homelessness, the top five causes of homelessness nationally are

1) lack of affordable housing,

2) lack of a high enough living wage,

3) domestic violence,

4) medical bankruptcy, and

5) mental illness. These reasons are among those that Spokane's homeless service providers hear from clients every day. It is also important to note that we refer to these community members as "people experiencing homelessness" . Courtesy My.spokanecity.org

Criminals or Homeless? Both!!

Speaking with a top elected politician who lives in the Spokane Valley, he stated clearly the city has an issue with homelessness currently and, we need to work diligently to curb the issues surrounding homelessness.

He stated that there is a definite difference in his opinion from a homeless person who would change their situation if they had the opportunity to do so and the large number of criminals that create damage to local businesses and drive away customers. This is an issue that creates fear in the business community with the upcoming creation of Balfour Park and the new Spokane Valley Library.

Questions have arisen of the publics safety as the existing park already has homeless camped there and the surrounding apartments cater to the unwanted night life that roams the street at night. As a local business owner I can see the fear after having my building lit on fire, tagged and finding hypodermic rigs laying in my parking lot as well human f***s in front of my doorway.

Please see original photo's attached to this post.

Part 4 Evictions and the Courts: HOW ARE THE COURTS HANDLING EVICTION HEARINGS?In most judicial districts, eviction hear...
08/16/2021

Part 4 Evictions and the Courts:

HOW ARE THE COURTS HANDLING EVICTION HEARINGS?
In most judicial districts, eviction hearings in Washington continue to be held remotely. In any given year, the courts receive 17,000 to 20,000 eviction filings across the state, said Edmund Witter, an attorney with the King County Bar Association’s Housing Justice Project. While the number has decreased during the pandemic, he expects the pace will resume once the moratorium lifts.

Recent statewide data shows just 2,700 eviction filings in 2020, said Jim Bamberger, director of the Office of Civil Legal Aid, a judicial branch agency. Courtesy Associated Press

What is in store for the landlords that couldn’t evict non paying residents?

This is a question that will be answered shortly. As landlords are inspecting units that are currently occupied by many of their residents, they are being left holding the bag with no compensation for the messes many of these tenants left behind. This is a severe cost burden especially to the Ma and Pop landlords that often operate as their sole means of having a retirement.

Part 3Eviction Moratorium and Tenant wantsSo what about the end of the eviction moratorium?A federal freeze on most evic...
08/16/2021

Part 3

Eviction Moratorium and Tenant wants

So what about the end of the eviction moratorium?

A federal freeze on most evictions enacted last year is scheduled to expire soon, after the Biden administration extended the original date by a month. The moratorium, put in place by the U.S. Centers for Disease Control and Prevention in September, was the only tool keeping millions of tenants in their homes. Many of them lost jobs during the coronavirus pandemic and had fallen months behind on their rent.

Landlords successfully challenged the order in court, arguing they also had bills to pay. They pointed out that tenants could access nearly $47 billion in federal money set aside to help pay rents and related expenses.

Advocates for tenants said the distribution of the money had been slow and that more time was needed to distribute it and repay landlords. Without an extension, they feared a spike in evictions and lawsuits seeking to boot out tenants who were behind on their rents.

Even with the delay, roughly 3.6 million people in the U.S. as of July 5 said they face eviction in the next two months, according to the U.S. Census Bureau’s Household Pulse Survey. The survey measures the social and economic effects of the coronavirus pandemic every two weeks through online responses from a representative sample of U.S. households.

WHAT’S THE STATUS OF EVICTION MORATORIUMS IN THE STATE?
Washington is one of several states that enacted a moratorium last year halting eviction proceedings. Evictions with a 60-day notice are allowed in some cases in which the landlord intends to sell or move into the property, or if an affidavit declares the tenant created health and safety problems.

Gov. Jay Inslee has extended moratorium protections several times, including last month. The protections will now remain in force until Sept. 30 to give landlords and tenants sufficient time to access federal aid.

As part of the anti landlord mandates imposed by some with I guess, some authority, have misguided the very lazy folks who are getting vocal. See picture below.

Through the end of September, landlords are prohibited from evicting tenants for past-due rent during the pandemic until rental assistance and eviction resolution programs are in place in their county.

Starting Aug. 1, tenants were expected to pay full rent unless they negotiate a lower amount with their landlord or actively seek rental assistance. Landlords must offer tenants a reasonable repayment plan before starting the eviction process and provide them a list of services and support available to them under the assistance programs.

The Legislature approved spending $658 million in federal money to extend the state’s rental assistance program. That doesn’t include hundreds of millions of dollars from previous federal relief programs that are being distributed to landlords. More than 33,000 households have received rent assistance through the end of June, and an estimated 80,000 households are expected to receive assistance through June 2023, according to the state Department of Commerce. Updated numbers a few weeks ago show that Commerce has been billed $179 million by counties allocating aid, but the agency stressed that amount does not reflect the total amount paid to landlords.

The governor also signed a “right to counsel” measure passed by the Legislature that ensures low-income tenants have legal representation when faced with eviction. Another new law that took effect this year focuses on tenant rights and the circumstances in which they can be evicted, and in some cases increasing the notice tenants must receive before vacating.

Credit Associated Press

Part 2Public Cost Burden/Public Civil BarriersLack of public funding for the construction of more rental units.     A.  ...
08/16/2021

Part 2

Public Cost Burden/Public Civil Barriers

Lack of public funding for the construction of more rental units.

A. In other communities, the communities and federal government (Hud) have programs to offer a variety of low-income housing programs targeting new construction. Currently pent-up demand is seeing what was historically, low-income market rate units’ rental prices soaring from 15% to 30% depending on the location.

B. Low Permitting Rates: Spokane County in general is behind or at least very slow at permitting new construction in areas that already have permits pending. With this slowdown it limits builders from quickly getting a handle on meeting the needs of the market and producing the number of units necessary.

C. New Rules for new construction to meet the new energy codes increase cost to builders and contribute to higher costs and inflation of home prices and rent.

D. Overall construction material increases: Let’s take sheeting that a year ago cost around $8.00 per sheet. Now the costs are closer to $70.00 per sheet and was at a high of over $80.00 per sheet earlier in the year. These costs must be burdened by the new home buyers and the ball is always moving. This is called building price/cost volatility. This is going to take some time as lumber prices have fallen somewhat however, the mills and producers are expecting a rally by the end of the year.

E. This can be controlled. Steel prices are up, fixture prices are up, demand is up, shipping delays and tariffs have slowed imports and, our current infrastructure is not designed to keep up with the demand nor do we have people standing in line for manufacturing/construction jobs when they can make more money working at a fast food restaurant.

Wages:

Where are the wages coming from to house the current in place low-income population as we experience more growth?

As Spokane is a growing market, are the jobs that can pay a living wage increasing with the demand for these jobs? The quick answer is no. The answer? Pay them! If you cannot and you are a small business? You have to work longer hours with less staff until your volume of gross sales catch up and can afford the help or, you improvise to do more with less or, you fold and the next entrepreneur takes your place to make more money with fewer employees.

As jobs in larger core markets are being done from a lap top instead of an office and desk, many of the jobs people have are being performed in the comfort of their own living space. These professional positions are increasing by the day as the need for large office space is not as necessary as it used to be. The Spokane area still offers cheaper rent and home prices than our large core market contemporaries.

Small business owners are looking at the market as a place to develop new start ups, large scale businesses such as Amazon and others see what the low cost development opportunities are such as the West Plains, Airway Heights, Spokane Valley and Liberty Lake, a great place to invest and build warehouse space or space for heavy machinery and the like.

Our costs compared to other markets are quite small. Wages paid at those facilities are higher in many cases than wages ever were in Spokane and, a lot less then what they would pay in a core market such as Seattle and it’s suburbs.

Introduction:  Part 1Currently in Spokane there has been a shortfall of building that spans clear back to 2008.With the ...
08/16/2021

Introduction:

Part 1

Currently in Spokane there has been a shortfall of building that spans clear back to 2008.

With the normal influx of people entering the market from both out of town and natural new market entrants we have created a shortfall of available units equaling roughly 19800 homes and 19800 apartment units.
These numbers are on the rise and expected to grow surpassing expectations at a rate of between 9,000 and 14,000 new market entrants per year beginning now.
Lets start with a quick paint by numbers approach and expand outward from there!!
Lets get started!!

With an expectation of another 9,000 to 14,000 people entering our market this next year and only having 1/4 the number of newly constructed homes available coming on the market, and of course still being 36% lower in house prices than in some metro Seattle Markets, it’s a no brainer that the Spokane, Airway Heights and, Spokane Valley markets still have room to move in both rents and home prices with an upward trajectory of likely 20% before we begin seeing our market being clearly overpriced.

Still, the average market entrant either moving in to their first apartments or for the first-time home buyer the matrix is changing dramatically.

Opportunities have been created for the value-add market to remodel their older units and bring them up to speed and, attain never before seen rental increases while new units coming on the market will have historic rental prices. (and they will get it)

Affordable Housing will become much more scarce as the market shifts and, difficulties will arise for the lower income workers as they are being priced out or, forced to roommate or live at home with parents or family members longer to afford their independence.

With the influx of more people, the need for sticks vs clicks, the retail world will become a growing need as well, the office sector will slowly begin filling up again, if not because of covid getting under control, at a minimum the number of jobs being created will eventually fill up those vacancies.

Current residential rental vacancy rates are less than 1% with an additional 1 1/2 % vacant for remodeling and updating to attain higher rent.

Office is all over the board depending on where your office is located in the inland empire. This ranges from 7 1/2 % to 15 %

Retail is solid and prices are slowly moving upward, less so in the Spokane Valley, more so in the core, N Side and on the South Hill.

Currently, permitting for new construction is very slow in the entire Spokane Region that is also creating problems for new construction across the board.
Often, we hear the term housing crisis being thrown around and it is true that Spokane, after being an island market is finally adjusting appropriately getting more in line with other Washington Communities and that is creating generational wealth for homeowners and property owners who have waited for decades for the adjust waiting out downturns and an economically stunted market.
So, what is the problem??
It’s not one problem, it’s many.

1. The Washington State growth management act prohibits growth into neighboring Rural areas and the Cities of Spokane, Spokane Valley, Airway Heights and Liberty Lake are suffering due to these regulations that hamper natural growth.

The Growth Management Act was designed to create more density in the cores of our cities to better maximize density and to aim that density with the purpose of maximize infill in our markets. That has failed for 20 years running.

2. Availability of units in neighboring markets are forcing people who work in Spokane County to live in Idaho and travel to work.
This creates a multitude of problems as the increased traffic creates more emissions and congestion of the highways. This can be seen any weekday in the morning on the highway heading to Spokane or any evening when the same people are heading home. People are moving East.
Spokane County and our cities are missing out in Billions of Dollars in Tax Revenue while also creating pollution and congestion.

3. Homeowners and small businesses that live near the core markets will not respond to the need when they are seeing their own personal wealth growing by keeping their homes as well, having the attitude of “Not In My Backyard” where apartments and condominiums are concerned.
When you have the possibility for growth in core areas of the market and, you have single family residences in the current footprint refusing to sell their homes or vacant land, you end up with the problem we are faced with currently. A shortage of available units. But that’s not all. When the prices of these homes go up with demand, the cost of purchasing them to become tear downs are prohibitive to new development. (People have property rights). Lets take Spokane’s North Central neighborhoods for instance. The value is let’s say $300,00.00 (more) for a 2 bedroom 1 bath modest home. The land value built into new construction is 9 to 10k per unit. You have to quantify how many units you can put on each 10 to 15,000 sq ft lot and it quite frankly doesn’t make good financial sense to do it. Please understand that eventually large corporate developers may buy and build today for profits tomorrow. Getting your attention?

My apologies everyone for not posting in a bit but, have been out there working for the benefit of my clients while digg...
08/16/2021

My apologies everyone for not posting in a bit but, have been out there working for the benefit of my clients while digging up the dirt on Spokane County's market and what to expect moving forward as well, looking at ideas to better strategize and position myself and clients moving forward.

As in so much doing that, I have been meeting with City, County and others to put in my two cents for what's its worth in dealing with the worlds (or at least my little world's) issues.

I have been drafting a white paper that lays it out so others who are fact driven can have the information they need to make critical decisions that can benefit them.

I intend on laying that out there for you over the coming few days in a multi part series. I hope you will take a look and give me your feedback!!

07/14/2021

81.8 acres with residential and multifamily land available!!

Love my listing!!

Address

421 N Mullan Road
Spokane, WA
99206

Telephone

+15092169307

Website

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