RE Investor from SF Bay Area CA learning Apartment Syndication

RE Investor from SF Bay Area CA learning Apartment Syndication

Rental Property Investor · Milpitas, CA · Member since 2019 · 12 posts · 7 votes

Hi everyone. My name is Danny and I've been a software engineer for the past 18 years and currently residing in the South Bay CA area for the past 14 years. I started real estate investing in 2011 after having read lots of books and was lucky to run into a mentor who helped me find the confidence to identify and close on my first deal. I currently have 4 income producing rental properties (SFH) all in the East Bay area.

My goal has always to been to generate multiple streams of income outside of my W-2 job so that I can eventually have the option leave the W-2 dependency and focus on the things I'm passionate about 100% of the time.  I've been thinking about what to do next since cash flowing properties in the Bay Area typically require a large amount of equity (40% in my new purchases) and I cannot realistically keep going this route at the pace I want.  I remembered the game of monopoly that was mentioned in Rich Dad Poor Dad, but instead of upgrading my 4 houses to a hotel, I thought about apartments.  

I've just started reading books (Finished @Joe Fairless book on Apartment Syndication - really good!) and listening to podcast about apartment syndication and found BP as part of my research.  I've never participated in a business or invested in commercial real estate before so I was surprised at how different the process is compared to residential real estate.  For residential I can basically do all the research and get all the numbers myself online(or with any number of local RE agents), but in the commercial real estate world, access to the required data is not readily accessible and requires both real world experience and networking to pursue.  

I have an interest in learning both the GP and LP side of the process so I figured my best bet to start is to find a mentor and partners to gain that real world experience while I continue to learn all the terminology and skills required to evaluate markets and properties myself.  My goal now is to gain the experience and credibility necessary to give myself the confidence and knowledge to build my own team for the GP side of the equation as well as to help myself, my family and friends gain the knowledge on how to properly analyze and passively invest in these types of projects on the LP side in the future.

From what I've been scouring here in the BP forums over the past few days, I can see this is a community full of friendly and knowledgable people from all walks of life. If anyone is on this same path I'm currently on (or has already gone through the journey), please let me know, I'd love to connect! Also if anyone wants to ask me questions about what I've learned about SFH rentals I'm always happy to share and help in anyway I can. I look forward to connecting with everyone.

2Reply
17 views

Most Popular Reply

Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
7y

Hi Danny,

Thanks for reading the book. 

Your strategy moving forward is sound. Work on your education to put yourself in the best place to succeed when you are ready to reach out to potential team members and investors.

See this reply in the discussion

6 Replies

Jump to latestLatest
  • Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
    7y

    Hi Danny,

    Thanks for reading the book. 

    Your strategy moving forward is sound. Work on your education to put yourself in the best place to succeed when you are ready to reach out to potential team members and investors.

  • Rental Property Investor · DFW TX · Member since 2018 · 179 posts · 260 votes
    7y

    Welcome to BP.

    In 2010, I was an EE with about 30 years.  My wife and I knew very little about RE so we visited a local RE Group.  We met our current mentor, Brad Sumrok, who gave a great presentation on MF.  As I decided to continue working, we invested passively (sponsor make more, but I actually enjoyed my job).  The early investment some cash-on-cash, but the big pay-off was when the properties would sell.  

    Many folks feel that a paid mentor is a waste of money.  If you pay and don't use or have little left to invest, I agree,  If you have knowledge and access to what you need (money or sponsors), there is no need for a mentor.  But for us, it has been a very good experience.  Happy to provide more details about my story or the network if you are interested.

    I note you are from SJC area.  There are several members of our network from CA and other places.  Members have bought properties in about a dozen states.

    Disclosure: I do not work for Brad, but I am a happy Brad-ite and volunteer at his recruitment events.

    Regards,

    Charles LeMaire

  • Specialist · Kansas City, MO · Member since 2018 · 331 posts · 148 votes
    7y

    @Danny Kao Congratulations on your 4 rentals and taking the action to accumulate those investments. As a person who also started in SFH and have now transitioned into the commercial space, it is a completely different ball game. There are so many different routes to go and also, everything is negotiable in commercial real estate. Structuring the deals, terms, etc. It is completely different than the residential space and allows for some great creativity.

    I would be happy to chat with you and see if I can lend some advice. Joe Fairless's book is a fantastic read. I personally went to the RE Guys syndication event and the podcast they put out is second to none. 

    What I would tell you - find someone who is willing to walk you through the process and answer your questions. Make sure they have your best interest in mind. With syndications you are now investing in people, not just properties. 

  • Rental Property Investor · Milpitas, CA · Member since 2019 · 12 posts · 7 votes
    7y

    @Theo Hicks Thanks for confirming on my strategy, besides the book, I really enjoy the podcasts and videos you guys put out!

    @Charles LeMaire Thanks for your info about your mentor experience.  I will follow up with you to see what your experience was like.  

    @Logan Freeman Thanks for the tips, I will definitely follow up with you for more advice as I'm learning my way around.

  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    7y

    Kudos to you . Thanks for the wonderful introduction . Just curious if you have heard of gene trowbridge for syndication ?

  • Rental Property Investor · Milpitas, CA · Member since 2019 · 12 posts · 7 votes
    7y

    @Jo-Ann Lapin I have not, any specific suggestions you have about him that I should look at?  Thanks.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.