Newbie from the East Bay (San Francisco Bay Area)

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Newbie from the East Bay (San Francisco Bay Area)

Andrew Jones
Flipper/Rehabber · Rodeo, CA · Member since 2017 · 22 posts · 5 votes

Hi, my name is Andrew. I'm from Rodeo, CA, about 20 miles outside of San Francisco. I've been a hub employee at UPS since 2005 and after two back injuries in two years, I'm looking for a better way to support my family. I'm a husband and father of two boys (5y/o and 3y/0) and they need a father that's not beat up all the time.

May not be too creative, but I'm currently planning to start off in whole selling. My work schedule is terrible for RE meet ups and is unfortunately necessary for the time being. I work Sun-Thurs with start times around 5pm. So, I'm hoping I can somewhat make up for it by making connections here.

My current goal is whole selling, but I'm open to learning any niche in the industry. Since I don't work days, I'm fine driving a little outside of my area, like Sacramento or a similar distance. If you know of any daytime REIA events happening in that radius, please let me know!

Thank you, Bigger Pockets and community members. I look forward to working with you!

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Tobias Falzone
Real Estate Agent · Orlando, FL · Member since 2015 · 126 posts · 74 votes
9y

Welcome! I used to live in Hercules, just down the street. The main REIA groups in Sacramento all meet in the evening around 6:30-7:00pm. I think you should try to get an evening off to make some meetings at least a few times at least to get your foot in the door. If that doesn't work, take come people from BP out to lunch and try to network that way. You don't need a whole lot of contacts for a buyers list as a wholesaler, because once you have a good enough deal the money will find you. But you need to network a little bit beforehand in order to move quickly.

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  • Tobias Falzone
    Real Estate Agent · Orlando, FL · Member since 2015 · 126 posts · 74 votes
    9y

    Welcome! I used to live in Hercules, just down the street. The main REIA groups in Sacramento all meet in the evening around 6:30-7:00pm. I think you should try to get an evening off to make some meetings at least a few times at least to get your foot in the door. If that doesn't work, take come people from BP out to lunch and try to network that way. You don't need a whole lot of contacts for a buyers list as a wholesaler, because once you have a good enough deal the money will find you. But you need to network a little bit beforehand in order to move quickly.

    1Reply
  • Andrew Jones
    OP
    Flipper/Rehabber · Rodeo, CA · Member since 2017 · 22 posts · 5 votes
    9y

    Thanks @Tobias Falzone! Luckily, my schedule is pretty flexible as far as time off, so I'll definitely be taking some time to network. May not be able to go with any consistency, but I'll be able to make contacts. 

    Did you do investing while you were living here? I'm wondering if I should maximize my time by mostly staying local or if I'd be better off finding deals outside the bay. 

    1Reply
  • Tobias Falzone
    Real Estate Agent · Orlando, FL · Member since 2015 · 126 posts · 74 votes
    9y

    I wanted to, but It is a different type of investing beast in the Bay Area.  The price/rent ratios are astronomical, so cash flow is only possible with tons of equity.  But the multiplier effect of this means you can get some insane returns for value adds and flips.  Some investors are willing to accept low/negative cash flow due to potential appreciation rates, but I get the feeling that appreciation rates are slowing and may level out for a few years.  Some buyers in the Bay, especially the international buyers are just looking for safe inflation proof places to stash their money and don't even care about cash flow.    You can definitely find deals, but there are just tons of cash investors waiting to pounce on anything that comes up, which could be great as a whoelsaler.  I would try to network locally, maybe in Vallejo/Fairfield/Vacaville.  Sacramento is a hot market right now and my Wholesalers are telling me deals are harder and harder to find due to competition of a few big flippers from out of the area that have set up shop in Sacramento.

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  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    9y

    Hello @Andrew Jones, welcome to the site! It's great to have you here. Feel free to ask any questions in the forums. Seeya around!

    BiggerPockets
    1Reply
  • Andrew Jones
    OP
    Flipper/Rehabber · Rodeo, CA · Member since 2017 · 22 posts · 5 votes
    9y
    Cool, thanks for the info Tobias Falzone! I was thinking about looking in Vacaville since I know an agent out there.
    0Reply
  • Erica McFarland
    Investor · Vacaville, CA · Member since 2016 · 6 posts · 6 votes
    9y

    I love Vacaville to live in but not sure about investing here, right now anyway.  Older homes have doubled in value since 2011. Price/rent ratio is pretty bad and believe as Tobias does that appreciation will likely level out soon. You will want to check your flood zones cause flood insurance will eat you alive and is going up by at least 25% every year which kills your cash flow.  I believe you would definitely have to work to find deals and/or check out alternate properties like condos and mobile homes.  I'm not actively working numbers so you will likely want to check it out for yourself to see what your take is. 

    1Reply
  • Andrew Jones
    OP
    Flipper/Rehabber · Rodeo, CA · Member since 2017 · 22 posts · 5 votes
    9y
    Good to know! I'll definitely be running a lot of numbers before I go diving into any deals. Erica McFarland, what market(s) piques your interest right now?
    0Reply
  • J. MartinPro Member
    Rental Property Investor · Oakland, CA · Member since 2011 · 3k+ posts · 2k+ votes
    9y

    @Andrew Jones,
    Welcome, congrats on getting into the game, and putting your health and family in the front of your mind ;) Real estate is all about pursuing the life that makes you happy :)

    I own some property in Oakland and Richmond - not too far from you. One of those was a great West Oakland duplex from a wholesaler - paid $20K for the contract. Been out to Rodeo a few times, but always stuck with properties closer to the BART stations. (Most people in the Bay Area and even East Bay still haven't ever heard of Rodeo though! lol)

    I agree with your approach 100% to find some other investors to network with (in person, in addition to on the BP forums.) There are a lot of great folks living here in the Bay Area. First, check under >Community>Networking events on BP and see if there is anything during the day. Then check meetup.com. Lots of events on there (although most in evening). A bunch of us in the Bay and the big hitters from BiggerPockets will also be gathering in the Bay in early October for a weekend-long networking/education event that would fit your schedule, if you can make it. 

    The most important thing to getting started IMHO is to be persistent and keep meeting people. You never know when you're going to meet that person that changes your entire perspective, gets you in a new market, investing style, financing situation, etc. Try to find a niche that works for you.. 

    On the wholesaling front.. I will give you one tip that I see a potential need for in the Bay. A lot of wholesalers run across multi-unit buildings - some with rent control and eviction protections - and they can't flip the property because they can't get the tenants out. (sometimes there are issues with the tenants in single family homes also.) Usually, these contracts just die, because no wholesalers see a way to flip it. 

    However, there are a bunch of multi-unit and long-term investors like myself, who would buy something that can't be immediately vacated - as long as the long-term numbers work, and the price is right. That's how I bought my wholesale deal. And has probably been my best equity return so far (~100%+ asset appreciation). 

    If you could get ahold of all the wholesalers and long-term buyers, you might be able to make that happen. Anyway, just a thought from what I've seen. There are a million ways to make money in real estate. 

    I'll be in Seattle with my girlfriend for most of the summer (I got into real estate so I could quit my job and travel where I want to be), but I'm around during the day when I get back in Sept. Come say hi!

    1Reply
  • Andrew Jones
    OP
    Flipper/Rehabber · Rodeo, CA · Member since 2017 · 22 posts · 5 votes
    9y
    Thanks, J. Martin! I would love to do business in Oakland or Richmond. Almost everyone I know lives or has lived in Oakland in the last 10 years. I've probably partied in some of your units. Haha I'm definitely interested in exploring all the real estate niches and strategies. Whole selling just seems like a good place for me to start. I figure it's the best way for me to learn how to get out of my comfort zone, learn the grind, and figure out the market. I'd eventually like to learn to invest and get some "passive" income. My number one goal right now is networking. I want to build some good business relationships. I don't plan on having some huge buyers list so I can mass email every property that comes my way. I'd rather meet just a few investors, either in different markets or with slightly different criteria so I know exactly where to go when I find their type of property. I'd like to be able to get lunch with people and discuss partnerships when I reach that point of my journey. I don't have much to offer right now since I'm completely inexperienced, but I am malleable for any ethical investors that want to do business with me. I looked at the summit and I'm totally down. Thanks so much for the info! Look forward to meeting you!
    1Reply
  • Henry Perez
    Rental Property Investor · Redwood City, CA · Member since 2017 · 50 posts · 22 votes
    9y

    @Andrew Jones Good luck on this journey. Let me know if you need any market info, rent info, etc. for the Sacramento area. My wife and I are currently looking to invest in a couple of 30-40 unit properties in the area. I would be glad to help.

    -Henry

    0Reply
  • Andrew Jones
    OP
    Flipper/Rehabber · Rodeo, CA · Member since 2017 · 22 posts · 5 votes
    9y

    Thank you, @Henry Perez! I need all the info I can get. Do you know much about mobile units in the area? I noticed there's a lot of affordable units, but do you think the market is good for investing as rental units?

    0Reply
  • Henry Perez
    Rental Property Investor · Redwood City, CA · Member since 2017 · 50 posts · 22 votes
    9y

    @Andrew Jones Unfortunately, I do not know much about mobile units in the area. We're focusing on apartment properties.

    Though the mobile home properties I have come across on the market while I'm gathering info area are selling for crazy high cap rate. 

    1Reply
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