Young accounting professional from Bay Area starting in REI

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

@Trexie E. I have bookmarked The Ultimate Beginner's Guide and finally began to read it over. There is so much free content on this site, you definitely begin to feel empowered and motivated the more you read around.

Thanks for your reply.

Dave VisayaPro Member

Moderator

Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes

9y

Hello @Mark Balliet, welcome to BiggerPockets! It is great to have you and please feel free to jump in the community - there are certainly great people around here!

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

@Dave Visaya I appreciate the kind words Dave, it's nice to meet you. As I mentioned to @Trexie E., the sheer volume of free content offered at BP is insane.

Bryan Pham

Rental Property Investor · Oakland, CA · Member since 2016 · 602 posts · 250 votes

9y

@Mark Balliet As a former Bay Area resident, I wish you nothing but the best! There are a lot of great meet ups in the SJ area. You should search and attend all of them on meetup.com

Matt K.

Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes

9y

Just out of curiosity have you considered going OOS? I only ask because I feel that there are metros you can get much better info on than the smaller ones you've listed. I know that a lot of people don't like or get intimidated by going OOS because they "don't know the area" or "it's too far", but then again most people aren't really going to know Modesto, Stockton, etc.

Account Closed

Investor · Houston, TX · Member since 2017 · 45 posts · 31 votes

9y

Hi Mark Balliet it's great to see that you are motivated and focused on building wealth for you and your family. You are doing it right by 1. Read as much as you can. 2. Meet and talk with as many (successful) investors as you can. 3. Write down a game plan. 4. Work that plan with laser like focus and massive action. Depending on your situation, a lot of new investors have good success with house hacking and wholesaling. There are many other ways too. Best of luck and welcome to BP! Adam

Jake Leicht

Lender · Temecula, CA · Member since 2012 · 60 posts · 23 votes

9y

Hi @Mark Balliet, welcome to BP! I've been a part of this site for a few years and as I get more and more involved, I'm finding more and more value within it. Such a valuable resource!

I've bought and sold over 100 homes in the San Joaquin County over the last 5 or so years (mainly in Stockton but also have done some fund stuff here and there in Modesto, Lodi, Manteca, Ceres, etc.) and I grew up in Stockton so please feel free to reach out to me if you have any questions about certain areas or just to put a second set of eyes on something. I love talking shop and creating new partnerships so don't hesitate should you have any questions.

Good luck!!!

2 Reply

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @Bryan Pham:

@Mark Balliet As a former Bay Area resident, I wish you nothing but the best! There are a lot of great meet ups in the SJ area. You should search and attend all of them on meetup.com

I appreciate that, Bryan. I plan to attend as many meetups as possible. I've seen a lot of people mention meetup.com so I will definitely check that out. Thanks for the kind words.

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @Matt K.:

Just out of curiosity have you considered going OOS? I only ask because I feel that there are metros you can get much better info on than the smaller ones you've listed. I know that a lot of people don't like or get intimidated by going OOS because they "don't know the area" or "it's too far", but then again most people aren't really going to know Modesto, Stockton, etc.

Hi, Matt. But definitely, OOS has remained one of my top interests given the pricing in the Bay Area. I know there are many more affordable opportunities OOS, I've even considered moving elsewhere to pursue my REI. But while my fiance attends grad school, I haven't thought of it as much of an option in the immediate future (though that could change). I'm open to anything at this moment, just trying to gather as much information as possible and see what makes sense in my situation.

The main reason I've picked the area I have is affordability. I would like to start my REI career in the near future (less than 1 year), so those areas made sense. But as I mentioned, I'm open to anything.

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @Account Closed:

Hi Mark Balliet it's great to see that you are motivated and focused on building wealth for you and your family. You are doing it right by 1. Read as much as you can. 2. Meet and talk with as many (successful) investors as you can. 3. Write down a game plan. 4. Work that plan with laser like focus and massive action.

Depending on your situation, a lot of new investors have good success with house hacking and wholesaling. There are many other ways too.

Best of luck and welcome to BP!

Adam

Nice to meet you, Adam. I've subscribed to audible and spent my first couple credits downloading Brandon's books. #2-4 on your list are a WIP, but I feel I'm moving in the right direction. It's nice to feel inspired again, working in public accounting has a tendency to wear you down. Luckily, I was able to find a firm that values employee morale and work-life balance, so I lucked out there.

House-hacking is something I'm highly considering right now while the SO finishes up grad school. Thanks for the kind words, see you around.

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @Jake Leicht:

Hi @Mark Balliet, welcome to BP! I've been a part of this site for a few years and as I get more and more involved, I'm finding more and more value within it. Such a valuable resource!

I've bought and sold over 100 homes in the San Joaquin County over the last 5 or so years (mainly in Stockton but also have done some fund stuff here and there in Modesto, Lodi, Manteca, Ceres, etc.) and I grew up in Stockton so please feel free to reach out to me if you have any questions about certain areas or just to put a second set of eyes on something. I love talking shop and creating new partnerships so don't hesitate should you have any questions.

Good luck!!!

How's it going, Jake? I agree, this place has been a gold mine of information early in my learning. And I will definitely take you up on that, actually. I would love to hear your experience/knowledge of the area and your endeavors in SJ County. Is it okay if I send you a private message?

Jake Leicht

Lender · Temecula, CA · Member since 2012 · 60 posts · 23 votes

9y

Sure @Mark Balliet, please feel free to reach out.

Account Closed

Investor · Houston, TX · Member since 2017 · 45 posts · 31 votes

9y

Mark Balliet I totally understand the public accounting thing. I did that for 2 years with EY. Time writing, billable hours, etc. My experience was great, but I figured out I liked the industry / finance space more than the public / tax space. The resources here at BP are wonderful and it looks like you've already made a local connection 😄. Keep learning, asking questions and your path forward will become clearer. Meeting up with local like minded investors will be invaluable. All the best and hope to hear how this journey unfolds for you! Adam

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @Account Closed:

Mark Balliet I totally understand the public accounting thing. I did that for 2 years with EY. Time writing, billable hours, etc. My experience was great, but I figured out I liked the industry / finance space more than the public / tax space. The resources here at BP are wonderful and it looks like you've already made a local connection 😄. Keep learning, asking questions and your path forward will become clearer. Meeting up with local like minded investors will be invaluable. All the best and hope to hear how this journey unfolds for you!
Adam

Ah, then you totally understand the grind. One of things that gets me through busy season is thinking "Well, at least I didn't go Big 4" lol. Especially on my drive home, I would occasionally pass the PWC building in SJ and the lights would be on at 11pm.

I really appreciate that, the support system here is great and motivating. See you around.

Matt K.

Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes

9y

Originally posted by @Mark Balliet:

Originally posted by @Matt K.:

Just out of curiosity have you considered going OOS? I only ask because I feel that there are metros you can get much better info on than the smaller ones you've listed. I know that a lot of people don't like or get intimidated by going OOS because they "don't know the area" or "it's too far", but then again most people aren't really going to know Modesto, Stockton, etc.

Hi, Matt. But definitely, OOS has remained one of my top interests given the pricing in the Bay Area. I know there are many more affordable opportunities OOS, I've even considered moving elsewhere to pursue my REI. But while my fiance attends grad school, I haven't thought of it as much of an option in the immediate future (though that could change). I'm open to anything at this moment, just trying to gather as much information as possible and see what makes sense in my situation.

The main reason I've picked the area I have is affordability. I would like to start my REI career in the near future (less than 1 year), so those areas made sense. But as I mentioned, I'm open to anything.

If you have the drive/skill set to invest outside of where you live (which it sounds like you do) then you could apply all that and go OOS. It's not nearly as difficult as some people make it out to be but it does take a certain level of trust that may or may not come about. In my specific case that trust was built upon many hours of research and some travel and then face to face meetings.

I'm not a hands on type per say, unless my rental was close by I'd have a property manager take care of the day to day. So if my property was in Stockton, Fresno, or really any other place it'd all be the same to me. It sounds better I guess to say "if I had to" I could drive down to Fresno to fix my property, but that's an emotional response. In reality I'm no more likely to go down to Fresno as I would be to hop on a plane and go OOS.

This is just food for thought, not really saying one market is better than another.

2 Reply

Jeet Sangha

Realtor · Gilroy, CA · Member since 2016 · 255 posts · 72 votes

9y

Maybe start off by being a real estate agent with one of the big brokers and you'll learn a great amount plus getting paid at the same time if you do acquire listings. Or, be an escrow officer or something related to real estate where you can learn and network at the same time.

David Song

Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes

9y

Mark Balliet I live in Bay Area and currently investing in Modesto. We did a flip last year in Modesto and purchased a mobile home park this year, also in Modesto. The reason that I went to Modesto is due to its location. If you drive eastward from Hayward, to liver or, to Tracy, and then Modesto, you will notice the terrain change. BART currently goes to Pleasanton area. Driving across the hills, its Tracy. I think Tracy Area will be prime location very soon. Their price is lower than Livermore but higher than Modesto. Modesto is cheaper, with still many people commute to Bay Area from Modesto. I have a tenant who just moved out the apartment in Newark and moved to the trailer park in Modesto. That save them $1200 month and lives a bigger and better house. The trade off is the husband has to drive. I looked at Stockton also, but have not invested there yet. If CA HSR really takes off, there might be significant opportunity for appreciation in Central Valley. However, that is uncertain and many years away. If BART extends further east, e.g., Tracy, there will also be appreciation in Modesto Area. Properties in Livermore has already appreciated significantly. The next stop of BART to the east will affect Tracy significantly.

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @Matt K.:

Originally posted by @Mark Balliet:

Originally posted by @Matt K.:

Just out of curiosity have you considered going OOS? I only ask because I feel that there are metros you can get much better info on than the smaller ones you've listed. I know that a lot of people don't like or get intimidated by going OOS because they "don't know the area" or "it's too far", but then again most people aren't really going to know Modesto, Stockton, etc.

Hi, Matt. But definitely, OOS has remained one of my top interests given the pricing in the Bay Area. I know there are many more affordable opportunities OOS, I've even considered moving elsewhere to pursue my REI. But while my fiance attends grad school, I haven't thought of it as much of an option in the immediate future (though that could change). I'm open to anything at this moment, just trying to gather as much information as possible and see what makes sense in my situation.

The main reason I've picked the area I have is affordability. I would like to start my REI career in the near future (less than 1 year), so those areas made sense. But as I mentioned, I'm open to anything.

If you have the drive/skill set to invest outside of where you live (which it sounds like you do) then you could apply all that and go OOS. It's not nearly as difficult as some people make it out to be but it does take a certain level of trust that may or may not come about. In my specific case that trust was built upon many hours of research and some travel and then face to face meetings.

I'm not a hands on type per say, unless my rental was close by I'd have a property manager take care of the day to day. So if my property was in Stockton, Fresno, or really any other place it'd all be the same to me. It sounds better I guess to say "if I had to" I could drive down to Fresno to fix my property, but that's an emotional response. In reality I'm no more likely to go down to Fresno as I would be to hop on a plane and go OOS.

This is just food for thought, not really saying one market is better than another.

That's excellent food for thought, Matt. The quote I bolded above is exactly the insight I was hoping to receive here at BP. Just excellent. It's all about figuring out what makes sense to your situation, and I'm definitely not closing any doors.

Thanks for your insight.

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @Jeet Sangha:

Maybe start off by being a real estate agent with one of the big brokers and you'll learn a great amount plus getting paid at the same time if you do acquire listings. Or, be an escrow officer or something related to real estate where you can learn and network at the same time.

I've actually considered doing exactly that, Jeet. It may be worth it, but I'm not too sure I would like to switch careers and my current occupation doesn't allow for a ton of extra time.

Currently, the route I'm going to gain knowledge and a network is shadowing either a real estate agent or investor and attending meetups.

OP

Yee, CA · Member since 2015 · 14 posts · 11 votes

9y

Originally posted by @David Song:

Mark Balliet

I live in Bay Area and currently investing in Modesto.

We did a flip last year in Modesto and purchased a mobile home park this year, also in Modesto.

The reason that I went to Modesto is due to its location.

If you drive eastward from Hayward, to liver or, to Tracy, and then Modesto, you will notice the terrain change.

BART currently goes to Pleasanton area. Driving across the hills, its Tracy.

I think Tracy Area will be prime location very soon. Their price is lower than Livermore but higher than Modesto.

Modesto is cheaper, with still many people commute to Bay Area from Modesto. I have a tenant who just moved out the apartment in Newark and moved to the trailer park in Modesto. That save them $1200 month and lives a bigger and better house. The trade off is the husband has to drive.

I looked at Stockton also, but have not invested there yet.

If CA HSR really takes off, there might be significant opportunity for appreciation in Central Valley. However, that is uncertain and many years away.

If BART extends further east, e.g., Tracy, there will also be appreciation in Modesto Area.

Properties in Livermore has already appreciated significantly. The next stop of BART to the east will affect Tracy significantly.

Excellent insight, David. I've heard this line of thinking a few times, especially as the cost of living in the bay area sky rockets. That's a main reason I originally targeted those areas in the east. It seems you have some great experience investing in the area, would you mind if I reached out with some more questions as I go through this process? Your insight would be extremely valuable to me.

Matt K.

Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes

9y

Originally posted by @David Song:

Mark Balliet

I live in Bay Area and currently investing in Modesto.

We did a flip last year in Modesto and purchased a mobile home park this year, also in Modesto.

The reason that I went to Modesto is due to its location.

If you drive eastward from Hayward, to liver or, to Tracy, and then Modesto, you will notice the terrain change.

BART currently goes to Pleasanton area. Driving across the hills, its Tracy.

I think Tracy Area will be prime location very soon. Their price is lower than Livermore but higher than Modesto.

Modesto is cheaper, with still many people commute to Bay Area from Modesto. I have a tenant who just moved out the apartment in Newark and moved to the trailer park in Modesto. That save them $1200 month and lives a bigger and better house. The trade off is the husband has to drive.

I looked at Stockton also, but have not invested there yet.

If CA HSR really takes off, there might be significant opportunity for appreciation in Central Valley. However, that is uncertain and many years away.

If BART extends further east, e.g., Tracy, there will also be appreciation in Modesto Area.

Properties in Livermore has already appreciated significantly. The next stop of BART to the east will affect Tracy significantly.

That's insane, what is that like almost 200 miles a day and like 4 hrs of driving? Not even counting the TIME spent... and using the IRS calc

200x5x4=4,000 miles a month

4,000 x .535=2,140 mo

Now I get that you may be able to operate a car for less than the IRS deduction, but I didn't even factor in driving time. That'd be what like nearly 4 hrs a day (avg 2hrs ea way). You basically have a part time job commuting and spending more money in gas to do so in order to live in a trailer park in Modesto.

Patrick Boutin

Hayward, CA · Member since 2016 · 100 posts · 15 votes

9y

Hey @Mark Balliet welcome to BP! You will find the site is full of information available to your fingertips! I really recommend the PodCasts which are an amazing way to motivate you and give you tips and ideas and you can listen to them during your daily commute.

I took want to invest East of the East Bay around Stockton, Manteca, etc... which are not that far away from the Bay Area and still somewhat affordable.

@Jake Leicht I too would like to connect if that would be ok with you? I'm not ready to pull the trigger yet (I have early 2018 as a target) as I am working on getting capital ready, finances stable, good credit, etc... all that good stuff but would like to start knowing the good areas from the war zones.

Taye N.

Hayward, CA · Member since 2009 · 258 posts · 62 votes

9y

Patrick Boutin Im from the bay and alway willing to share And gv.

Fernando E.

Rental Property Investor · SF Bay Area · Member since 2016 · 234 posts · 103 votes

9y

Mark Balliet welcome to the BP community! I used to work for public accounting as well for 7 years in San Jose and now work in the IT industry. Anyway, happy to see you here! Listening to the Podcast and hanging out in the BP forums is a good way to build knowledge, also the BP books are good, "the book on rental property investing" by Brandon Turner & "set for life" by Scott trench is good resource. I've been meeting a few folks in the Bay Area just to connect and discuss our goals, if you can connect to experienced mentors that will be great. I only have one REI right now a SFR (single family residence) in Elk Grove, CA and only getting appreciation (we bought it 6 mos ago for $335K and Zillow estimate is $358K) happy with the purchase however knowing what I know now I could made better decisions but I learned a lot. My advice like what the good folks in this thread preach is to learn, learn, learn and take action. Let the number speak and not your emotions. Good luck and happy learning and Investing!