Newbie in the San Francisco Bay Area (San Mateo)

Newbie in the San Francisco Bay Area (San Mateo)

Investor · San Mateo, CA · Member since 2015 · 12 posts · 5 votes

Hello!

In  an effort get past my "analysis paralysis", I'm taking the plunge and getting more engaged in my real estate activities. The only properties that I have invested in are the homes that I've owned.  I've spent many years doing research, learning and working the math but, I haven't actually bought an investment property.

My goals are to provide a means to a college education for my two kids (4th and 5th grade, respectively) and to augment my retirement.  If I create that foundation, I'll have the fundamentals to potentially take things to another level. (My situation is very similar to that of Karen Rittenhouse from Podcast 002; Starting out with Karen Rittenhouse).  

I currently work in the hi-tech industry on the sales side.  I want to be able to translate those skills and talents into this new venture.  I'm pretty savvy around the computer (Apple based devices; home networking, making data sharing from device to computer, etc,) and would be willing to offer help to those who need it.  

I seek advice and encouragement to keep me focused and plot a sound course of action.  Some of the strategies I'm looking into are wholesaling and Subject-to.  Eventually, I'd like to try and flip properties. My financial situation is such that I have decent retirement funds but, not a lot of cash.  Any and all insight is appreciated.

Regards,

-Willie

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Kyle KargesPro Member
Investor · Gilbert, AZ · Member since 2015 · 59 posts · 11 votes
11y

Willie,

I don't know what type of retirement account you have but I would look into a self-directed IRA. You can take control of your money and invest in real estate property, ones that cash flow of course.

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  • Kyle KargesPro Member
    Investor · Gilbert, AZ · Member since 2015 · 59 posts · 11 votes
    11y

    Willie,

    I don't know what type of retirement account you have but I would look into a self-directed IRA. You can take control of your money and invest in real estate property, ones that cash flow of course.

  • Investor · San Mateo, CA · Member since 2015 · 12 posts · 5 votes
    11y

    Kyle,

    Thank you for your response. I Recently started to research using a solo 401(k). Is that one type of self-directed IRA? Are there others?

  • Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @Willie Kate Hi and welcome to BP! Solo 401(k) can be self-directed and you contribute a lot more yearly to a 401(k), while for the most still use it similarly to invest in RE.  I just attended a free online webinar this week on the subject of self-directed retirement accounts.  It was very informative to me, and I already had one SDIRA established for several years.

  • Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    11y

    @Willie Kate 

    Welcome.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

    http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

    Good luck

    Paul

  • Broker Associate/Investor · Carmel Valley, CA · Member since 2014 · 45 posts · 9 votes
    11y

    Welcome Willie,

    I've enjoyed the J. Scott book on flipping properties as well as rehab costs.  Also, the podcasts are fantastic! 

  • Brian EastmanPro Member
    Self Directed IRA & 401k Advisor · Wenatchee, WA · Member since 2014 · 2k+ posts · 2k+ votes
    11y

    @Willie Kate 

    There are two basic types of self directed retirement plans. IRA based programs are pretty widely available. The Solo 401k is designed for people who are self-employed and have no full time employees other than potentially their spouse. Both programs would allow you to diversify your retirement plan investing into real estate. The key principal to keep in mind is that the tax-sheltered retirement funds are not for your benefit at the current time, and you need to keep all your investing very separate from personal affairs and at arm's length.

    The Solo 401k has a few distinct advantages over the IRA, assuming you qualify. If you have active self employment (not passive investment holdings) that produce significant income, you can defer significant amounts into the 401k and both reduce your tax profile while building up that nest egg. A 401k is also superior to an IRA based program if you are looking at using leverage, as it is not subject to UDFI taxation on income generated from borrowed funds. Lastly, if you are investing in California, the 401k platform does not require an LLC in order to provide you with checkbook control, while an IRA will.

    There is great potential for retirement wealth building with these plans.  There is also a lot of good information and some good resources here on BP on the topic.  Read up a little than touch base with a few of the professionals who offer such services, as well as your tax advisor.

    Best of luck as you start putting planning into action!

  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    11y

    @Willie Kate ,

    There are a lot of great investors on bp, and here in the Bay. Why don't you stop by a couple meetup groups in the area and see what others are up to? Check my signature or @Johnson H. 's in San Jose.

    If you can find a good wholesale deal for a flip in a good area, you can make $20K easy.. (I've paid someone that for one relatively recently!) FHA loans on 4plexes are a great way to leverage little cash, but you have to move in, so that might not be feasible with your family.

    Some are flipping.. Some investing out of state.. I'm staying around Oakland and Richmond for now, but you never know what the future holds!

    You sound like you're determined, so I'm sure you'll succeed! Hope to meet you in person soon!

  • Real Estate Investor · Silicon Valley, CA · Member since 2012 · 169 posts · 52 votes
    11y

    Hi Willie and welcome! 

    What a wonderful supportive community this is at BP!! I'm very close by and would love to meet up at a meet up!

    The most bestest of wishes to you in your real estate endeavors!! 

  • Real Estate Investor · Redwood City, CA · Member since 2012 · 272 posts · 399 votes
    11y

    Hi @Willie Kate .  Welcome to BP.  I used to live in San Mateo.  Great town.  Love the downtown.  

    I'm glad to see you've recognized you have "analysis paralysis".  Admitting you have a problem means you have taken the first crucial step on the long road to recovery ;-) 

    I know other people who have talked about, thought about and researched real estate, attended meetings, gone to work shops, etc, for years. Gotta just put down the calculator and take action. 

  • Investor · San Mateo, CA · Member since 2015 · 12 posts · 5 votes
    11y

    First and foremost, thank you for your support and advice.  (Hopefully, it's proper etiquette to respond in the following fashion)

    @Larry Fried ;  thanks for the tip.  Do you happen to have a link to the online material?

    @Paul Timmins Great advice.  As they say," Grab mitt and get in the game!".  

  • Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @Willie Kate I do have a link, but they don't work here. You can find it on the home page of my website (see below my name).

  • Investor · Las Vegas, NV · Member since 2015 · 111 posts · 18 votes
    11y

    Hello 

    everybody

    I have done the flipping way before the word flipping was known, real estate has always been known as long term and that is one thing you must keep in mind . In 2008 i discovered and opened my first SAFEBOX-selfstorage.Gmbh in Germany during the worst economic time in recent history and since that time i have opened 2 more . Great cash-flow great appreciation. Take  a look at this 

    USA                     325 million people      550000 self storage facilities

    Uk                         63 million people         1200 self storage facilities 

    France                  42 million people            435 self storage facilities 

    Netherlands          17 million people            275 self storage facilities 

    GERMANY            82 million people            135 self storage facilities 

    PUBLIC STORAGE the largest in the world just purchased 5 facilities in Germany for 66 million euros  (2  in Berlin and 3 in Hamburg) see BLOOMBERG report august 2014

    Wanna know more contact me  and you all have a wonderful investment life and i hope you make a great return in whatever you invest in

  • Investor · San Mateo, CA · Member since 2015 · 12 posts · 5 votes
    11y

    @Larry Fried 

    Thanks!  I'll check it out.

  • Laguna Beach, CA · Member since 2014 · 263 posts · 140 votes
    11y

    @Willie Kate 

    Hi Willie,

    Welcome to BP. Thanks for such an informative post. It is great that you are now ready to move beyond "Analysis Paralysis" and take action. Since you mentioned that, I think you have already taken the first step, and that is making a decision to become an investor. 

    If you want to learn more about the wholesale, please note that a wholesale business is an excellent way to generate cash to fund investment ventures for real estate or other areas you need cash to participate.  Real estate investing can take up as much time and money as you are willing to contribute. Likewise, your rewards are porportuniate to the effort you give to any endeavor. 

    you can learn a lot about the wholesale process and business here on BP. I can also make recommendations to you if you are interested. I am glad to see another person declare their intentions about investing and look forward to hearing what you will bring forth to the investing arena. 

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    11y

    Hey @Willie Kate thanks for jumping in and introducing yourself! If you haven't yet- be sure to setup some "Keyword Alerts."

    Also, I highly suggest that you take a look at - The Ultimate Beginner’s Guide to Real Estate Wholesaling

    See you around the site!

  • Investor · San Mateo, CA · Member since 2015 · 12 posts · 5 votes
    11y

    @Victoria Winters 

    Thanks for your post.  I'll look into the contents here on BP as you mentioned.  I'll keep in touch as I seek further advice.

    @Brandon Turner 

    Thanks Brandon!  And, yes, I've downloaded the guide AND listened to the podcasts!  

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