Investor · Rocklin, CA · Member since 2013 · 63 posts · 16 votes
Hello all,
I am a wannabe buy and hold investor in Sacramento, CA. I am a "Wannabe" because I have made over 25 offers now and I have only been able to pick up one rental property! Cash Hedge Funds suck:)
My fist property has been a great experience. I purchased a rental in Loomis that has some great cash flow.
I am big into goals and I have a goal to pick up two more properties in 2013. I have been beat out by cash offers time and again in Sac, these goals NEED accomplished :) so I am in the process of picking up a property in Vero Beach Florida. I am also looking into a property in Dallas, TX. I am also looking into some opportunities in Reno.
I am looking forward to associating with other like-minded individuals! Thank you.
Welcome to BP. Al gave you a good pointer... As Willie Keeler said " hit'em where they ain't." Have you read about the infill projects by Petrovich in Curtis Park and Phil Anglides called Mckinley Village? The new development off of Broadway called NW Landlark. These projects will connect "fringe" neighborhoods with affordable rentals to some of the most desireable neighborhoods in the city and those planned communities will have everything.
Off market deals are something I want to get into. What are some strategies you would recommend? Bandit signs? Yellow letters? Any info would be greatly appreciated!
Jared Adamson hope I'm not too late to welcome a fellow Sacramentian to BP. Let me 2nd Ned Carey as I typically do.
But let me add that you are in luck - Ryan Lundquist (BP Podcast 007) is a local appraiser and he blogs about Sacramento real estate. It would be wise to subscribe: http://sacramentoappraisalblog.com and get an insider's view on the macro and micro goings on in the home of the Sacramento Kings!
Welcome to BP. Al gave you a good pointer... As Willie Keeler said " hit'em where they ain't." Have you read about the infill projects by Petrovich in Curtis Park and Phil Anglides called Mckinley Village? The new development off of Broadway called NW Landlark. These projects will connect "fringe" neighborhoods with affordable rentals to some of the most desireable neighborhoods in the city and those planned communities will have everything.
Joe, Thank you for the new ideas. I have only lived in the Sac area for 2 and a half years. I have mainly only been focusing my investment hunting in Placer county. Thank you for giving me these new ideas!
Almost all of coastal California has a very low rent-to-value ratio making it challenging to find a "good" deal. In addition to that, hedge funds cherry picking and bidding up many markets around the U.S.
Although a 25 to 1 ratio is decent, you are still competing on lower returns with the properties you do have accepted offers on.
We just sold out on a complete "off market" development in Vero Beach. You're the first person I've come across on BP that mentioned that market.
Dallas is also a good market we have unlisted properties in, but the big challenge there is the very low inventory. This is a problem we see in other markets like Phoenix, SW Florida and Georgia.
Have you considered looking into Indianapolis or Memphs?
Jared Adamson, welcome to BP from another Californian. Don't count on Blackstone to run out of money any time soon. They've raised over $13 billion (yes, that's a B) in private equity and they're problem is deploying it fast enough. The key is not to butt heads with the funds because you can't win. Not all is gloom and doom by any means however. There are many great secondary markets that the funds are not in yet. Although American Homes 4 Rent is in Indianapolis in a big way, there are still good cash flow opportunities there as Marco Santarelli has pointed out. Kansas City is another good cash flow market. You might also want to consider working with a turn key provider who will do the work for you. Feel free to contact me if you'd like more info on good markets.
Hey Jared Adamson. Congrats on the purchase in Loomis. I actually have an appraisal inspection there today. Maybe I'll use your purchase as a comp. It's not easy out there to get offers accepted. Right now 53% of all sales in Sacramento County under $200K are cash and 38% of the entire market is cash. It's pretty wild to compete with that. Thanks Al Williamson for the mention. I really appreciate that.
Thank you for sharing what you share on your blog! I don't think I have seen anything local more detailed! Have fun in Loomis and if you see anything available let me know:)
Hey Jared Adamson welcome! I'm actually working on a post right now for the Blog called "How to Beat the Hedge Funds" - so keep an eye out!
Also, be sure to set up some Keyword Alerts for some of the topics you are knowledgeable about, or other topics that interest you (like wholesale, Sacramento, Rehab, etc ) so you'll be notified that those words were mentioned in the forums and can jump into those conversations! It's also an awesome way to meet new people from your area when they introduce themselves to this forum!
Little late to this Sacramento party but Welcome Jared and appreciate the colleague add.
I will 3rd what Al Williamson mentioned about Ryan Lundquist's blog (and thank you Ryan, your blog is invaluable and informative). As you can see, the information Ryan provides is fantastic. I've been following Ryan since I heard him on the BP podcast. I actually busted out a blog post last weekend to show my buddy where the cash sales are.
He's looking to buy in the 450k-550k range and has lost 12 offers to cash offers - all greater Sacramento/Hwy 50 Corridor.
Also, I might encourage you, Jared, to visit the NorCal REIA meeting. It's the 2nd wednesday of every month is is a fantastic group to be apart of. I've been to 2-3 meetings and, being a new guy, has provided some great information.
Right on Sean Moen. That's cool. There is definitely less cash at that price level, though inventory is still an issue. By the way, what is the REIA meeting? I had an investor ask me recently if I knew of any investment clubs. Maybe this is one?
Ryan Lundquist,
There are 2 local investment clubs in Sacramento that I have attended - and seem to be the most popular - are the NorCal Real Estate Investors Association (NorCal REIA) and Capital City Wealth Builder (CCWB). I prefer the NorCal one.
Unclear of the promotion rules on the forums but you can Google both of these and they have pretty good meetup.com pages taking about the who, what, where of the meetings.
Jared Adamson - you're not the only one suffering from Blackstone's expansion plans, they've gotten as far as Japan (our playing field) too, acting on behalf of China's sovereign fund, no less - http://www.nippontradings.com/japan-real-estate/japans-stability-increases-foreign-investment-flow/
Zig Magen,
Wow I had no idea Blackstone was over there as well. All I know when they start to sell I will be there to pick some of them up. They have manipulated the prices up when they buy in bulk and I am sure they will manipulate them down when they sell a few years from now!
Sean Moen,
Thank you for the advice on going to the REI clubs. Do you know if there is a membership dues or if you can just go check them out with no obligation?