All Forum Posts by: Andrew Fingado

Welcome to the site!

Is your name really James Bond? If so you have one of the best conversation openers someone can have.  

"The name's Bond, James Bond"

@Paul Lewis Welcome. I'm just north of you in Richmond, and I am in the same boat as you.  Had analysis paralysis for a long time and tried to make it work in my own area.  The cash flow wasn't here (at least the type of cash flow I desired), and wholesaling has dried up a lot and I couldn't find anything to flip.  

So i'm doing a JV (joint venture) right now with an out of state provider who I trust and respect, and I feel like i'm in good hands. I thought about turnkey as well. I think if you go with a reputable turnkey company it's probably a good way of getting your feet wet and getting some decent returns. Sure, you may not get the type of cash flow that locals are getting, but it's still above and beyond what you could get out here in our market. Plus the place is fixed up to a great extent and it's pretty hands off, so there's a premium you are paying for more peace of mind.

Just remember to check on the neighborhoods, I cannot stress that enough.  You probably know this but I just want to reiterate:  Call local brokers/property managers, local investors, and ask them about the neighborhood.  Use sites like city-data and look up neighborhood info, crime rates, etc.  I have seen some turnkey providers say an area is a "B-" neighborhood and a simple google street view shows boarded up houses and the place looks like a war zone.  I have also looked at areas on google street view that look good, and then once I looked at crime maps and talked to people, I realized the area was horrible.  So, do your due diligence and you should be fine.  You can change property managers but you can't change the neighborhood.

Look forward to hearing how it goes!

@J. Martin This summit you've created sounds like a perfect environment to network.  Looks like some big names are going to be there.

As of right now, i'm slowing down my property management business and ramping up my out of state investments. I'm under contract with an apartment building out in Cleveland with a JV partner and i'd love to meet some out of state real estate providers. Also trying to get into the wholesaling/fix and flip business out here in the bay area.

I'll definitely try to make it out there in November.

In California it is 15 by law.  I'm not sure if your area has similar legal requirements, maybe someone else can weigh in.

From a personal level though, as a property manager, I think it would be a good idea to have an on-site manager with a building with 25 units or more.

J,

Great thread.  You sound like a lot of other successful investors and your priorities are in the right place.  You remind my of my Dad, the most successful and frugal person i've ever known personally.

My Dad still wears the same old clothes, some as old as the late eighties I suspect, but can never confirm.  He still drives a modest 15 year old car, and lives in the same house that he bought 30+ years ago.  He could afford a bigger home, a newer home, an ultra luxurious high end neighborhood, etc.  But he is happy where he's at in his upper-middle class neighborhood.  Also, one of his favorite shoes are a pair of nikes I threw out 13 years ago in high school. He fished them out of the garbage and still wears them to this day.  It's funny because they are skateboarding-type sneakers designed for a younger generation, but at 73 he doesn't care.  He thinks they are comfortable and hates seeing anything go to waste.  I love that about him!

Now someone may see him shopping at the market and figure he's a blue collar kind of guy, maybe he retired from a factory job.  Little do they know he makes more net income in his retirement from real estate than many physicians.  He made sacrifices when he was young and bought property instead, and it's paid off.

He always told me that when he worked at as a loan originator for 20+ years the first red flag he saw in people at the bank was how nicely they were dressed.  He said a lot of the time the more well dressed they were, the more they were trying to "impress" the bank to get a loan and their finances were in shambles.  His conservative lifestyle created a job for me out of college when the rescission hit and he has prepared my family well after he's gone.

His frugality is my inspiration every time I want to buy something unnecessary.  I can't thank him enough for the lessons he taught me.

I help my father manage his vacation rental up in South Lake Tahoe.  It's in a private community right on the South Shore just a half mile from the Nevada state line.  We only rent it out for about four months out of the year, and use it ourselves.  It's been in my family since the early 1900's and it's just one of those legacy properties you hold onto.  

The reason we only use it as a summer cabin is because there is an oversupply of vacation rental in the South Lake Tahoe area in my opinion.  To get it fixed up, heated, and maintained year round would cause him to lose money. 

When a vacationer has a choice of ski lodge condo (right next to the slopes), casino hotel, motel, or house, they often choose the former before the latter.  So I would just be careful of markets that have oversupply.  We had someone in our subdivision up there build a brand new cabin years back and from what I have heard it's not renting out as consistently as the owner thought.

So the cabin really isn't a money maker, and it is nice to have around.  So if you are OK with just having your vacation home paying for itself (or taking small losses), it's a great thing to pass down and share good times with family.

Of course, every market is different.  I've been interested for a while in purchasing a vacation property up around Bodega Bay.  I know a guy who's done real well up there.

Ouch to the guy that bought it only to realize that he couldn't even access it.  I hear horror stories about situations like that.  You really need to do your homework.  I feel like buying land in the bay area can be a very lucrative investment, but you need to be very, very careful.  There's that parcel in El Sobrante reason is priced so low.  Such a shame too, that's prime location.  I'm beginning to think of all the creative ideas on how you would be able to use that land!  Buying land like this sure makes you turn your thinking cap on.

@J. Martin That's a pretty decent area of El Sobrante.  Nice price too.  Might be something worth holding onto for the long haul.  They can't build anymore land, and that area is great for long term appreciation in my opinion.  The downside is that the lot looks real steep.  Also, there is always that fear that you might not be able to do anything with it.   On the flip side, I would bet that there's a good chance someone will eventually buy it from you one day at higher price purely on speculation.

@Vicki S. Send me a PM, I can give you the name of someone I'd trust.

@Bharat Medasani Welcome!  Most of the property management business I do is in Berkeley.  You should attend one of the local BPOA (Berkeley Property Owners Association) meetings.  Very informative, and a must if you are going to be a landlord.