All Forum Posts by: Brock VandenBerg

Investing outside of your market is very difficult. I would highly recommend that you stick to investing in San Diego.  There are plenty of great opportunities in our market, albeit, the real estate is a little more expensive. I would recommend going to a local real estate investment event, such the San Diego Creative Investor Association or North San Diego Real Estate Investor club. Google both to get the info.

You can deny an applicant based upon the fact that they have a dog or any other issue you find with their application. This should be your PM's problem, not your problem. You definitely do not want this litigious applicant as a tenant because this will be the first of many issues if you sign a lease with them. Go with your gut instinct and pass on the applicant. 

@Dan H. Well said Dan.  I think investors who are simply comparing the difference in cap rates between investing in California market and the Midwest are making a mistake.  I much prefer a lower cap rate in California knowing there is a high likelihood of long term rent growth and capital appreciation vs. concerning myself with a higher initial cap rate in the midwest but on an asset where rent grow is small and an asset that is deteriorating. The most common argument that I hear about investing in the midwest (other than better cash flow) is that properties are cheaper, and I can't argue against that.

I tell all new investors, buy your own home first.  Place yourself on a schedule to paydown principal (no interest only loans). If you want to take the risk, you can always borrow against your property to buy another. Better yet, save up and buy another property. All that being said, buy in your local market.

Hi Nicholas.  Squatters have a lot of rights in California.  The eviction process can be expensive, but more importantly, very time consuming.  This question is best submitted to a real estate attorney that specializes in tenant evictions. I have financed several projects that required our borrower to evict a non paying tenant. A couple of the tenants simply left with cash in pocket (and only paid once they leave the property, a common mistake made by good hearted investors). However, I have seen first hand what can happen when a tenant digs in and fights all the way up to the point of the sheriff removing them from the property.

Hi Archie Sharp.  There are a number of "low cost" real estate field trips scheduled in San Diego on most weekends.  Do a quick search on Meetup and you will see a couple.  You can always call me for specifics.  We Sponsor a couple of the better ones.

Welcome Aaron.  Give me a call to discuss...  I run TaliMar Financial,  a hard money lending company that specializes in funding Fix & Flip, Construction, Bridge Loans throughout California. I network heavily throughout San Diego.

Welcome to BP Josh! I always recommend real estate investors start by purchasing their own home.  We follow similar paths. I moved to the Bay Area from North County San Diego in the early 2000's.  After waiting for several months, I purchased a 2 bed / 2 bath condo in Fremont, CA for some ridiculous price at the time and with a mortgage that I could not afford and rented a room to various co-workers to cover about 50% of the mortgage.  To make a long story short, I moved back to North County San Diego and have held the condo as a rental ever since.  Comparable units are now selling at an even higher ridiculous price. I honestly can say that it has been one of the best investments that I have ever made.  Back to my original point, start with your own home and expand from there. 

Hi Dante. I am also in the camp of holding your existing property and buying another with a HELOC (and or saved funds). I would highly consider buying another property for yourself in San Diego with either a secondary unit that you can rent, or better yet, a property that can is a candidate for an accessory dwelling unit (ADU). Though I am a fan of buying cash flowing real estate assets, I think buying in California is still a great option over the long term as rents have historically risen faster than the markets you mentioned and you will have the added value of long term appreciation. I have used my experience on several posts in which I have held/rented each property that I originally purchased for personal use. I have built a small portfolio of rental properties in the Bay Area and San Diego. Though my goal has shifted from leveraging my purchases to paying down the principal of each property, each has had nearly 100% occupancy since I started to rent to them and each has continued to appreciate. I think one of the most overlooked investment options in San Diego (and California) is the push by cities to allow property owners to build accessory dwelling units (ADUs). ADUs will substantially increase the value of a property and provide an owner an alternative stream of cash flow. I have included a link to information on ADU's below.

https://www.sandiegocounty.gov/pds/zoning/formfields/PDS-611.pdf

Welcome to BP! I have been investing in San Diego real estate for over 20 years, and have been doing hard money for Fix & Flip, Construction, and Bridge Loans for the last 11 years.  Please feel free to use me as a resource to locate opportunities in the SoCal market. I can connect you with a good network on real estate investors that specialize in the SD market. I would also recommend attending the North San Diego Real Estate monthly investor event (link below).  We are a Sponsor, so if you hit me up ahead of time, we can give you a free pass for the next event.  Good luck!

https://www.nsdrei.org/

Welcome to BP @Joshua Ferracioli. Depending on where you live, you should attend the North San Diego Real Estate Investor Club or San Diego Creative Investor Association networking event. Both are great events to meet like minded real estate investors and listen to seasoned investors. I am a sponsor at both events so please come find me if you attend.