Hello from San Francisco

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Hello from San Francisco

Abraham Williams
Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes

Hello Bigger Pockets People, I'm Abraham Williams and live in San Francisco. I started investing in single family homes (probably the last time I spell that out here) in 2007 and have properties in Denver, Oklahoma City, and Charlotte. These properties are doing great and came through working with Adiel Gorel's network. Of course, I'm looking to expand and want to move into multifamily properties. My goals are to have 100 multifamily units and 30 houses in 5 years. 

I'm very fortunate to own my house in San Francisco but am kept very busy with work at a mobile tech start up in Palo Alto.

I found out about Bigger Pockets from a friend and am looking to learn strategies for financing that I can apply to reach my goals. I'm also looking forward to meeting members here and sharing what I have learned. 

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Brie SchmidtBusiness Member
Moderator
Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
11y

@Abraham Williams

 - As J mentioned I have experience in both types of financing.  Recently I have had some interesting conversations with banks willing to offer us favorable terms on longer term notes.  My suggestion is to build up what you can with your W-2 income.  Once you have a decent net worth and experience commercial will be very easy.  Some road blocks you will face is that once you get past 4 financed properties (they can do up to 10) you can't cash out refi on any investment property, so if you plan is to pull equity out to grow I would do it before you hit that 5th.  Once you get close to the $2 million mark commercial will take it and loan on favorable terms.

Podcast Guest on Show #132
Second City Real Estate4.821 Reviews
WebsiteView Page
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  • Antonio Coleman
    Specialist · Sibley, LA · Member since 2014 · 1k+ posts · 190 votes
    11y

    @Abraham Williams  The wealth of knowledge here is amazing. If you drive a lot the podcast are a great way of passing the time and start the process of digesting the content here on BP.

    0Reply
  • Abraham Williams
    OP
    Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes
    11y

    Thanks @Antonio Coleman, I'm enjoying the podcasts to make my travel time more useful. 

    0Reply
  • Chaz Reid
    Investor · Fayetteville, NC · Member since 2014 · 916 posts · 190 votes
    11y

    @Abraham Williams 

    Welcome to Bigger Pockets!

    Need some quick motivation for remaining focus on your investing journey? Check out a quick blog post I wrote:

    http://www.biggerpockets.com/blogs/6240/blog_posts...

    0Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    11y

    Welcome to BP, and very cool about your properties and your goals. Never heard of Adiel Gorel, but sounds like it was a good move! How were/are the numbers on the Denver properties? I don't usually hear about much cash flow there. 

    How big of MFRs are you wanting?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Abraham Williams

    financing will be your issue... portfolio lenders are starting to come back it becomes a dialing for dollars game.. just buy the best you can and be happy with quality projects

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • Account Closed
    Austin, TX · Member since 2015 · 102 posts · 33 votes
    11y

    welcome to BP! I have also done very well with my TKs in Charlotte, lucky to have gotten hooked up with a good one there. I do not have experience with Oklahoma city and Denver. Are those pretty good markets too? 

    San Antonio has served me well with owner finance deals down there, and Kansas city is good too.

    0Reply
  • Abraham Williams
    OP
    Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes
    11y

    Hi All, thanks for helpful pointers. For MFRs, I haven't done them before but like the idea. My bet is I can make it work and move it up from there. I'm thinking up to 4 units at first. 

    For me, Edmond just north of OKC, has been very good. It's near a very large medical center. Rents have gone up slowly (it's not a surging market). When I started, they were around 1200 in 2007 for a 3/2/2 and now they are about 1675 for a new one. 

    In Denver, I hear it's a bit of boom and bust. When we bought there, they were a bit down and we got a few properties around 120k that were about 50 years old. They need maintenance every now and again but rents there are up. It looks like it's an up cycle right now. They are my most profitable SFRs and always have been. I wish I had bought 20. :)

    Charlotte has been steady. Very little vacancy but growth has been slow. I hear it's starting to come up. So, I'm waiting on that area. 

    On Adiel, he was very good start with. His focus was on stable markets, new SFRs, long-term buy and hold, and remote management. He has a huge network so there were lower percentages on realtor fees and management. Glad I started that way. 

    I'm thinking about financing strategies now. I know the basics...wife and I each have separate properties, etc. From here, I'm learning more and more about different ways to go and lenders. I heard a WellsFargo lender on Saturday say he helps people get to 10 and then do commercial blankets to restart the 10 counts. I was surprised to hear that from Wellsfargo.

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    11y

    @Abraham Williams

    Hi and welcome to BP!

    0Reply
  • Abraham Williams
    OP
    Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes
    11y

    Thank you!

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    Welcome to BP community @Abraham Williams It is a great place to meet new friends and learn about various aspects of real estate and more. Here are a few recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet

    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts

    Wishing you the best! 

    0Reply
  • Abraham Williams
    OP
    Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes
    11y

    Awesome! Thanks @Dmitriy Fomichenko. And thanks @Larry Fried @Account Closed.

    1Reply
  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    11y

    @Abraham Williams,

    Welcome! Come out and say hi at the next SF meetup. I'll be announcing it by tomorrow I think.. You mentioned financing for your plan. There is lots of money out there right now. I agree, I would consider getting a blanket "commercial" loan on a pool of properties, then buy individually if necessary. @Brie Schmidt has experience on the financing side and is a broker/investor in the Chicago / Milwaukee, and has a good turnkey review site, along with @Jay Hinrichs.

    With your w2 and any other income from your tech job, you should have a strong overall financial profile from what I can guess. I recommend you chat with @Vikash, who goes to @Johnson H. s San Jose meetup. He's a former techie now owning and managing lots of out of state rentals. You might also want to touch base with @Account Closed to get a contrasting perspective to loading up on hundreds of units out of state. But to each their own..

    Good luck, and hope to meet you in person soon Abraham!

    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    11y

    You're most welcome, Abraham! See you around the site! 

    0Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    11y

    Abraham,

    Welcome to Biggerpockets. Looks like you have had quite a bit of real estate experience. You should be giving advice instead of receiving. Remote management sounds cool though. I bet your properties in Denver have the highest appreciation compared to others. 

    When people refer to multi-family, they're general talking about 5+ units. 1-4 units are considered residential. Financing is a little different too. When people talk about cap rates, they normally refer to commercial and multi-family buildings. It's inappropriate to use for 1-4 units because these are based on sales comps while commercial is heavily weighted towards income approach. 

    Cap rates can easily be manipulated so you have to come up with your own parameters to evaluate the deals. Sellers like to dress up their income while keep their expenses low a couple of years before disposition. So it's not what it seems. I like to use GRM in my evaluation because you cannot manipulate it. Just want to share something that I have learned. It should be a fun investing journey.

    Good luck. 

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Abraham Williams

     - As J mentioned I have experience in both types of financing.  Recently I have had some interesting conversations with banks willing to offer us favorable terms on longer term notes.  My suggestion is to build up what you can with your W-2 income.  Once you have a decent net worth and experience commercial will be very easy.  Some road blocks you will face is that once you get past 4 financed properties (they can do up to 10) you can't cash out refi on any investment property, so if you plan is to pull equity out to grow I would do it before you hit that 5th.  Once you get close to the $2 million mark commercial will take it and loan on favorable terms.

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    1Reply
  • Abraham Williams
    OP
    Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes
    11y

    Thanks @J. Martin I'm right at the 4 limit on the cashout refi...I just refinanced them all and didn't take any cash out. That equity is just sitting there! Curses. :) 

    Abe

    1Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    11y

    @Abraham Williams- Yea, I knew of the cap, but thought cause I was buying more in a LLC it wouldn't matter, but it does and I have a few hundred thousand I can't pull out unless I go with a portfolio lender at 6.5%

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    0Reply
  • Tyler Flagg
    Investor · Pensacola, FL · Member since 2013 · 277 posts · 78 votes
    11y

    @Abraham Williams welcome to BP! I'm an out of state investor as well and have been purchasing properties in OKC over the course of the last year. Feel free to send message if there is anything I can do to help. Best of luck!

    0Reply
  • Andrew Jordan
    Rental Property Investor · Austin, TX · Member since 2015 · 49 posts · 21 votes
    11y
    Welcome to BP Abraham Williams I couldn't have said it better Antonio Coleman ! Lol. The podcasts are, in my opinion, hands down the best way to pick up snippets of information. Constantly listening, learning, and creatively thinking about generating wealth and income, as well as setting goals (which you clearly have outlined) are huge success drivers. Sounds like you're already on your way to financial freedom. Stay ambitious!
    0Reply
  • Account Closed
    Involved In Real Estate · Santa Rosa, CA · Member since 2015 · 1 post · 0 votes
    11y

    @Abraham Williams

     I am from the North Bay area of San Francisco! Sonoma County to be exact.

    I was wondering which start up you are working at? As internet technology is a business I have and am keenly interested in what others are doing. Just curious.

    I have been busy with my own property projects, real estate seo and home sales trying to find just the right property.

    __

    www.santarosaca-realestate.com

    Santa Rosa homes and MLS Listings

    0Reply
  • Kannan Ganesan
    Duluth, GA · Member since 2015 · 2 posts · 0 votes
    11y

    Hello I am Kannan from Atlanta. I hear lots of people talking about W2 income. What about people like me who are retired? ! We have no recurring income but have passion to do it. Any helpful suggestions please?

    0Reply
  • Abraham Williams
    OP
    Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes
    11y

    @Tyler Flagg@Andrew Jordan

    Thanks very much. The podcasts are great for sure. I think I will get another SFR in OKC in the next month or so.

    Abe

    0Reply
  • Abraham Williams
    OP
    Real Estate Investor · San Francisco, CA · Member since 2015 · 10 posts · 5 votes
    11y

    Hi @Account Closed I have no idea what your situation is, but there is always a way. I haven't tried a meetup yet, but I will and expect that there will be new ideas for investment strategies from the people I meet. There have been many mentions of starts with owner-financed properties. I will look for that myself. 

    0Reply
  • Kannan Ganesan
    Duluth, GA · Member since 2015 · 2 posts · 0 votes
    11y

    Thanks Abraham. I really appreciate your taking the time to respond. I am new and I would like to learn and grow. Any suggestions will be heartily welcomed.

    0Reply
  • Rhett TullisBusiness Member
    Property Manager · Oklahoma City, OK · Member since 2013 · 1k+ posts · 617 votes
    11y

    yeah still lots of good deals in okc no matter what part of town you are looking in.  Just have to be patient for the right deal to come along.  

    [email protected]405-283-6522
    Integrity Oklahoma
    WebsiteView Page
    0Reply
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