Beginner from San Jose, CA

New Member Introductions
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Beginner from San Jose, CA

Hendra Lim
Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes

Greetings BP community,

My name is Hendra Lim.  I'm a software engineer from San Jose, CA.  I became interested in investing in real estate in early 2018.  My research quickly turned me to BiggerPockets.  I joined BP in March 2018.  Since then, I've been trying to educate myself as much as possible by listening to BP podcasts, reading blogs over here, and real estate related books.  Now it's January 2019.  I thought it's a good a time as any to take action, so I finally take the plunge write my first post here at BP.

My interest is in buying multi family properties for rental in B, and C+ neighborhoods for cash flows. I'm definitely looking forward to put in practice some of the tools that I have learned so far. I especially interested in utilizing BRRRR technique if opportunity shows up. Since Bay Area real estate price has been very intense, I'm interested in investing out of state. I'm currently looking at Indianapolis, IN and Jacksonville, FL, but definitely open to other markets.

Looking forward to be part of BP community, connect, learn from all of you, and contribute back to BP community!

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Most Popular Reply

Ross Denman
Real Estate Consultant · Whitestown, IN · Member since 2014 · 547 posts · 933 votes
7y

@Hendra Lim I don't know much about Jacksonville, but if you are interested in Indy, there is a Facebook group that is just for Indianapolis Out of State Investors. Great place to learn and network

https://www.facebook.com/groups/260862967817696

There are plenty of good markets out there with different types of opportunities. I think that the most important thing is to build a good team in one of your chosen markets (acquisitions, financing, project management, property management, etc.) Different cities/markets have different strategies that work differently as well, so ensure that you are listening to your team and understanding some of the nuances of that market. An Israeli associate of mine was telling me how they flopped a big development project in Birmingham because the design they chose was hip/trendy in Israel, but unappealing in Alabama and it was never as profitable as it was planned to be. I recommend visiting your target markets, meeting prospective members of your team, driving (and walking) neighborhoods and homes, and get a feeling for the city and its people.

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  • Jack Inman
    Attorney · Memphis, TN · Member since 2017 · 130 posts · 104 votes
    7y

    Welcome aboard Hendra! 

    Value-add projects such as the BRRR can yield great returns, but they have a lot of moving parts. Good work on thoroughly researching the topics before buying!

    0Reply
  • Kerry Noble JrPro Member
    Investor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    Welcome......from Indy! Feel Free to connect.

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y

    @Jack Inman Thanks for the warm welcome! Completely agrees that BRRRR has a lot of moving parts. It's pretty intimidating and exciting at the same time.

    @Kerry Noble Jr Thanks for the warm welcome!  Definitely would love to chat with you about Indy.

    0Reply
  • Jonathan Taylor
    Lender · Los Angeles, CA · Member since 2017 · 916 posts · 647 votes
    7y

    Welcome to the site! I agree, stick with the BRRRR strategy since it yields the best deals.

    Good luck!

    0Reply
  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    7y

    Welcome to Bigger Pockets, @Hendra Lim!

    You'll find plenty of friendly, knowledgeable people willing to help respond to your questions. Many members are experts in their respective fields related to real estate investing, whether that is real estate brokerage, wholesaling, flipping, buy and hold, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.

    The site has quite a few tools that can be helpful for new members. For example, if you are looking to connect with other members near you, want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could start your search here: https://www.biggerpockets.com/search/users

    I really like the alerts feature that can quickly guide you to current topics that might interest you: http://www.biggerpockets.com/alerts

    There are a few self-contained guides that you can access here: https://www.biggerpockets.com/guides

    0Reply
  • Lane Kawaoka
    Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
    7y

    @Hendra Lim I would start out with SFH because the exit strategy on them is better because you can sell to a retail buyer.

    You will likely sell these properties in 4-7 years. Trust me I used to buy these turnkeys.

    Let me know if there are any specific questions I can help with. Aloha :)

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y

    @Jonathan Taylor Thank you for the welcome!

    @Justin Windham

    @Justin Windham Thank you for the welcome and the tips.  Lots of good information there.  I am still trying to figure out my way around BP pages.

    @Lane Kawaoka That is good point. I am definitely up for SFH if the number works. Thank you for your gracious offer!

    2Reply
  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    7y

    @Hendra Lim I was born and raised in San Jose myself. Indianapolis is a good cash flow market but I would recommend adding Kansas City to your list also. The only thing I would caution you on is MF in Indy. Indianapolis can vary neighborhood to neighborhood and block to block and the majority of MF there is in old, rough areas. 

    1Reply
  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    7y

    Welcome to BP Hendra and best of luck investing!

    Podcast Guest on Show #121
    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    7y

    @Hendra Lim Welcome to the forums of BP and to starting your REI adventure! When you say multifamily are you looking for residential (2-4 units) which can be conventionally financed, or something commercial 5+ units?

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y
    Originally posted by @Mike D'Arrigo:

    @Hendra Lim I was born and raised in San Jose myself. Indianapolis is a good cash flow market but I would recommend adding Kansas City to your list also. The only thing I would caution you on is MF in Indy. Indianapolis can vary neighborhood to neighborhood and block to block and the majority of MF there is in old, rough areas. 

    Thank you for the tips, Mike!

    When you said the majority of MF in Indianapolis are in old, rough areas, how rough are they?  Are they C or D neighborhood?  In your opinion, are they worth the headaches?

    I'll add Kansas City into list of markets to research.  What kind of properties do people prefer there?

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y
    Originally posted by @Andrew Syrios:

    Welcome to BP Hendra and best of luck investing!

    Thanks for the warm welcome, Andrew!

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y
    Originally posted by @Larry Fried:

    @Hendra Lim Welcome to the forums of BP and to starting your REI adventure! When you say multifamily are you looking for residential (2-4 units) which can be conventionally financed, or something commercial 5+ units?

    Thanks for the warm welcome, Larry!  I'm looking to acquire residential MF to start with.  I am reluctant to go with commercial MF at this point because it scares me as I don't haven't read much about it yet.  But I'm open if I can find someone experienced that can help guide or partner with.

    I've also been thinking about joining RE syndication as a way to invest in RE passively, but I don't know if it's good idea to try too many different things when I'm just starting.

    1Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    7y
    Originally posted by @Hendra Lim:

    Greetings BP community,

    My name is Hendra Lim.  I'm a software engineer from San Jose, CA.  I became interested in investing in real estate in early 2018.  My research quickly turned me to BiggerPockets.  I joined BP in March 2018.  Since then, I've been trying to educate myself as much as possible by listening to BP podcasts, reading blogs over here, and real estate related books.  Now it's January 2019.  I thought it's a good a time as any to take action, so I finally take the plunge write my first post here at BP.

    My interest is in buying multi family properties for rental in B, and C+ neighborhoods for cash flows. I'm definitely looking forward to put in practice some of the tools that I have learned so far. I especially interested in utilizing BRRRR technique if opportunity shows up. Since Bay Area real estate price has been very intense, I'm interested in investing out of state. I'm currently looking at Indianapolis, IN and Jacksonville, FL, but definitely open to other markets.

    Looking forward to be part of BP community, connect, learn from all of you, and contribute back to BP community!

     Hello and welcome! Best of luck to you! 

    0Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    7y
    Originally posted by @Hendra Lim:
    Originally posted by @Larry Fried:

    @Hendra Lim Welcome to the forums of BP and to starting your REI adventure! When you say multifamily are you looking for residential (2-4 units) which can be conventionally financed, or something commercial 5+ units?

    Thanks for the warm welcome, Larry!  I'm looking to acquire residential MF to start with.  I am reluctant to go with commercial MF at this point because it scares me as I don't haven't read much about it yet.  But I'm open if I can find someone experienced that can help guide or partner with.

    I've also been thinking about joining RE syndication as a way to invest in RE passively, but I don't know if it's good idea to try too many different things when I'm just starting.

    I think it is wise to proceed with a focus on one area of REI when starting out. I certainly did. Starting with turnkey SFR. However there is no reason you can't be educating yourself about syndications along the way. BTW, I totally agree with Mike on Indy small multis. To some extent it is true in most of the midwest markets (Chicago is a notable exception), where most renters in better areas rent SFR - because they are plentiful, not like the West Coast. There are exceptions to this even in Indy, but cash flowing ones are rare finds.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Hendra Lim:

    Greetings BP community,

    My name is Hendra Lim.  I'm a software engineer from San Jose, CA.  I became interested in investing in real estate in early 2018.  My research quickly turned me to BiggerPockets.  I joined BP in March 2018.  Since then, I've been trying to educate myself as much as possible by listening to BP podcasts, reading blogs over here, and real estate related books.  Now it's January 2019.  I thought it's a good a time as any to take action, so I finally take the plunge write my first post here at BP.

    My interest is in buying multi family properties for rental in B, and C+ neighborhoods for cash flows. I'm definitely looking forward to put in practice some of the tools that I have learned so far. I especially interested in utilizing BRRRR technique if opportunity shows up. Since Bay Area real estate price has been very intense, I'm interested in investing out of state. I'm currently looking at Indianapolis, IN and Jacksonville, FL, but definitely open to other markets.

    Looking forward to be part of BP community, connect, learn from all of you, and contribute back to BP community!

     Welcome to the site Hendra.

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y

     Thanks for the welcome, Tom!

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y

    Thanks for the info Larry.  I'll be double, triple checking the numbers to make sure they make sense and continue educating myself.

    By the way, what is your experience with turnkey SFR when you were starting out? And knowing what you know now, would you change that and how?

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y

     Thank you, James!

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y
    Originally posted by @Account Closed:

    @Hendra Lim Welcome and good luck! Love that you are jumping right in to multi-family. A lot of people on this site will tell you to start small to gain the experience. While every person is entitled to his or her own opinion, I believe that if you are educated, you can and should go as big as you're comfortable with.


    Would love to hear more about your strategy and how you plan to deploy capital. What are you looking for specifically? 

    Thanks Mike!

    My strategy is to focus on buy and hold residential MF or SF in A, B, C+ neighborhoods for cash flow.  That's what I'd like to focus for now and where the bulk of my capital will be deployed.  And of course, as mentioned in my other posts, open to other opportunities if make sense.

    1Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    7y

    @Hendra Lim  I suggest you verify the numbers, but also check out the company and people involved as thoroughly as possible.  I was fortunate that I first started with turnkey I picked a company that has built an excellent reputation for integrity and effectiveness.  What would I do differently: I would have bought more properties from them early on - back in 2013.  Now, I don't think their prices warrant the risk of investment.

    1Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y
    Originally posted by @Larry Fried:

    @Hendra Lim  I suggest you verify the numbers, but also check out the company and people involved as thoroughly as possible.  I was fortunate that I first started with turnkey I picked a company that has built an excellent reputation for integrity and effectiveness.  What would I do differently: I would have bought more properties from them early on - back in 2013.  Now, I don't think their prices warrant the risk of investment.

    That's awesome Larry.  It seems that consistently making sure that the number works and vetting the people you work with pays big time.

    If you don't mind, what is the name of the turnkey company that you bought properties from before?

    0Reply
  • Hendra Lim
    OP
    Rental Property Investor · San Jose, CA · Member since 2018 · 14 posts · 10 votes
    7y

    Thanks!  I'm currently looking into Indianapolis and Jacksonville.

    1Reply
  • Ross Denman
    Real Estate Consultant · Whitestown, IN · Member since 2014 · 547 posts · 933 votes
    7y

    @Hendra Lim I don't know much about Jacksonville, but if you are interested in Indy, there is a Facebook group that is just for Indianapolis Out of State Investors. Great place to learn and network

    https://www.facebook.com/groups/260862967817696

    There are plenty of good markets out there with different types of opportunities. I think that the most important thing is to build a good team in one of your chosen markets (acquisitions, financing, project management, property management, etc.) Different cities/markets have different strategies that work differently as well, so ensure that you are listening to your team and understanding some of the nuances of that market. An Israeli associate of mine was telling me how they flopped a big development project in Birmingham because the design they chose was hip/trendy in Israel, but unappealing in Alabama and it was never as profitable as it was planned to be. I recommend visiting your target markets, meeting prospective members of your team, driving (and walking) neighborhoods and homes, and get a feeling for the city and its people.

    2Reply
  • Larry Fried
    Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
    7y
    Originally posted by @Hendra Lim:
    Originally posted by @Larry Fried:

    @Hendra Lim  I suggest you verify the numbers, but also check out the company and people involved as thoroughly as possible.  I was fortunate that I first started with turnkey I picked a company that has built an excellent reputation for integrity and effectiveness.  What would I do differently: I would have bought more properties from them early on - back in 2013.  Now, I don't think their prices warrant the risk of investment.

    That's awesome Larry.  It seems that consistently making sure that the number works and vetting the people you work with pays big time.

    If you don't mind, what is the name of the turnkey company that you bought properties from before?

     Hendra, I will PM you that info.

    0Reply
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