All Forum Posts by: Jeff Pollack

Hey All,

The next meeting of the San Jose Real Estate Investing Club will be April 26th. Our guest speaker will be David Adams, CEO of HomeSuite, Inc. David will discuss the ins and outs of corporate rentals and how you can dramatically boost your rental income by switching from the traditional lease model to the corporate rental model.   

Please sign up and pay for this event at our web site http://sanjoserenc.com/next-meeting/ and RSVP on our Meetup site. $10 in advance, $15 at the door.

As always, a copy of the audio and slide deck are included in the price of admission.

Topic: How to Increase your rental income with less hassle via corporate rentals 

Speaker: David Adams, CEO of HomeSuite, Inc

About the Speaker: David Adams founded HomeSuite in 2014 based on first hand experience with the rental marketplace. Throughout his adult life, David traveled frequently and only lived in flexible lease rentals based on his needs for flexibility and optionality. Prior to HomeSuite, David attended Stanford Graduate School of Business, worked in strategy at Microsoft, and worked for International Justice Mission in Kolkata, India. He received his bachelor's degree from University of Michigan. When he is not at HomeSuite, you can find him exploring San Francisco and researching new places to travel.

About the presentation: We all know about the standard buy and hold property with 1-year lease. But what if you could increase your rent by 50% or more? Corporate/business rental is the way to do it. At this meeting David will discuss the corporate rental market and how you can deploy your rental properties to take advantage of this growing niche. What locations work? What amenities does your house or apartment need? How and where should you market? Who should you target with your marketing? David will discuss this and more.

https://www.yourhomesuite.com/

I hope to see you next week!

Jeff

Keywords:

South Bay, South Bay Meetup, Bay Area, Meetup, Meet up, Meet-up, San Francisco , Oakland, Berkeley, Alameda County, Contra Costa County, South Bay, Peninsula, Walnut Creek, Fremont , San Jose, Milpitas, Sunnyvale, Fremont, Palo Alto, Santa Clara, Mountain View, Gilroy, Santa Cruz

I bought a couple properties from Tom back in late 2011. Nice enough guy, but after that I built my own team in DFW (then Atlanta Metro) so I could cut out the middleman. Collected a few more properties for myself and sold many as TK to folks in the Bay Area, or retail to owner occupants.

I advise you to confirm the tax numbers you are being shown. Are they the numbers from the previous year when the owner lived there and was getting $1000+ knocked off via the homestead exemption, over 65 exemption, etc? Was the property assessed for $40k less than you'll be paying? If so, your mileage will vary to the tune of a couple thousand $ more in property taxes. That won't help your cash flow. 

http://www.dallascad.org/TaxRateCalculator.aspx

https://taxonline.tarrantcounty.com/taxweb/taxcalc...

Jay is correct about Texas. You will not cash flow consistently, especially buying TK. The property taxes are too high, and turnover costs combined with CapEx will be higher than you expect (hail and wind damage to roofs, blown down fences, AC overworked and dying prematurely, the aforementioned clay soils, etc).

On those two TK properties I bought, my net cash flow between October 2011 and August 2016 (when I sold them) was about $6000. Though they did appreciate about $70k each since I bought at the bottom of the cycle. So if you buy in a great neighborhood with solid schools and no empty land within spitting distance you may get decent equity buildup over time via appreciation and principle paid down. But you're more likely to feed those properties than cash flow.

Happy hunting!

Hey All,

The next meeting of the San Jose Real Estate Investing Club will be March 22nd. Our guest speaker will be Haim Mamane Palman, 'The Virtual Wholesaler Guy'. Haim lives in San Francisco but wholesales properties in markets thousands of miles away using a systems based approach.

Please register for this event at our web site http://sanjoserenc.com/next-meeting/

Topic: Virtual Wholesaling....How to run a real estate business from anywhere with a laptop and phone

Speaker: Haim Mamane Palman, the Virtual Wholesaler Guy

About The Speaker: As a real estate investor and entrepreneur, Haim has been involved in over 200 real estate transactions in multiple states using different strategies including Buy and Hold, Fix and Flip, Private Lending, Owner Financing and his favorite strategy, Virtual Wholesaling.

Since starting to Virtually Wholesale properties in 2013, Haim was able to quit his 9-5 job in September of 2015 and become a full-time real estate investor with a location-neutral-business. His main objectives (or his “Why”) are: spend quality time with his two children and his wife, travel the world, spend the summers in Israel where he is from, and really enjoy life. Recently he has started to coach others on how to virtually wholesale properties and to show them how to design a business that supports their desired lifestyle and not the other way around. Haim was born in Israel and now lives in San Francisco, CA with his wife and two kids.

About the Presentation: In his presentation Haim will discuss (among other things):

Meeting Agenda:

7:00 Networking

7:15 Market update

7:30 "Haves & Wants"

7:45 Featured Speaker

9:00 Networking

I hope to see you in a couple weeks!

Jeff

Keywords:

South Bay, South Bay Meetup, Bay Area, Meetup, Meet up, Meet-up, San Francisco , Oakland, Berkeley, Alameda County, Contra Costa County, South Bay, Peninsula, Walnut Creek, Fremont , San Jose, Milpitas, Sunnyvale, Fremont, Palo Alto, Santa Clara, Mountain View, Gilroy, Santa Cruz

Hi all,

The next meeting of the San Jose Real Estate Networking Club will be Wednesday February 22nd. Our speaker will be local Bay Area investor Jason Buzi. Jason will share with you the methods he has used to earn an annual income of 7-figures per year since 2013 here in the Bay Area.

Please register for this event at our web site: http://sanjoserenc.com/next-meeting

Topic: Learn how local investor Jason Buzi consistently earns 7-figures investing in real estate

Speaker: Jason Buzi

About the Meeting: At this meeting Jason will share stories, experience, and insights that will help you up your game and improve as a real estate investor. Hear how he flipped a $1 million house when he didn't have money to pay his rent and how a $387,500 mistake changed his business model. Jason will discuss the 5 basic strategies for real estate investing (wholesaling, wholetailing, rehabbing, new construction, and buy and hold), when he prefers to employ each strategy and why it's important to be flexible. He will also discuss deal finding strategies, and the four success principles of real estate investing. Jason will also talk about why most gurus don't understand the Bay Area, and why most new investors fail here (and how you can avoid being one of them).

About the Speaker: Jason Buzi has been a full time real estate investor since 2005. He started out with no money and focused exclusively on wholesaling until 2010. Since 2010 Jason has done numerous rehabs, new construction, joint ventures, and acquired rental property. By making some adjustments to his business model, he has been earning 7 figures in real estate since 2013.

Jason gained worldwide publicity as the founder of Hidden Cash, which set up scavenger hunts worldwide. He has been interviewed by CNN's Anderson Cooper, Good Morning America, Fox News and more. In addition to his business activities, Jason enjoys traveling and doing volunteer work.

Meeting Agenda

7:00 Networking

7:15 Market update

7:25 Haves & Wants

7:35 Guest speaker

9:00 Networking

Hope to see y'all there!

Cheers,

Jeff

keywords: South Bay, South Bay Meetup, Bay Area, Meetup, Meet up, Meet-up, San Francisco , Oakland, Berkeley, Alameda County, Contra Costa County, South Bay, Peninsula, Walnut Creek, Fremont , San Jose, Milpitas, Sunnyvale, Fremont, Palo Alto, Santa Clara, Mountain View, Gilroy, Santa Cruz

@Stephen Grass, you won't find anything in the Atlanta Metro in that price range that meets the 1% rule. At $150k you are well past the inflection point where rents stop tracking with home value and are in areas that make for nice places to live, but lousy places to own an income rental property. To meet the 1% rule you'll need to be below $100k and in C neighborhoods. 

You're not likely to find bona-fide Bay Area wholesalers replying to random requests for wholesalers on BP. There are only a handful of real wholesalers and they have a short list of 3-5 people who buy everything they come up with. No need for them to bring their $1m+ deal to a random new investor who may or may not be able to perform. 95% of the "wholesalers" in the area are newbies who figure, "I have no money, so I'll be a wholesaler", but most of them will never find a deal in this market. There are also investors who will sometimes wholesale instead of flip a deal, but the story is the same. They have a short list of people who will buy anything that makes sense.

Good luck and happy hunting!

Thank you to Brian Burke and Dan Dreher for coming all the way down from Santa Rosa. As always, Brian brought fantastic content and great insights on multifamily investing. I hope all who attended enjoyed it.

Jeff

Hey @Diane G., with @Account Closed shouting out I can't help but give my $0.02, which is worth at least half that. 

A couple things. First, if you buy a house for $600k, put $100k into it, and sell for $800k you're not gonna make much money. Even if you use your own money (and don't account for opportunity cost) you'll be lucky to make $50k pre-tax after deducting agent fees, closing costs, insurance, utilities, staging, and property taxes. That is not much of a margin on a $100k rehab and $800k property in a softening market. 

And i'd think long and hard before you sell a Bay Area asset generating $3100/mo rent with a $900/mo mortgage. You don't need your own money to flip houses in the Bay Area or anywhere else. In fact, having a bunch of money starting out can be a detriment to your flipping business as you will not learn the art of finding money and can't scale. With your $800k you may be able to get into one project if you're working the low end stuff in the Bay Area. Then you'll find all your money is locked up and you can't do anything until that project is done. 

You need to use OPM (other people's money) and other sources of funds. Do you have a 401k at your day job? You can borrow up to $50k and pay yourself back. Do you own a primary residence? If so, get a HELOC. Shop around and get the biggest one a bank will give you. It costs nothing to get, nothing to have in place if you're not using the money, and rates are low. And hard money for funding flips is cheap these days. With $400k cash you should easily be able to get a hard money loan if you have a deal that actually makes sense. For your first deal you may not get the cheapest rates, or you might have to bring in a more experienced partner to get the funding, but you can get money.

If you want to sell your Union City property because you bought at a good time in the cycle, feel we are now topping out and want to take profits, great. But don't liquidate your rental under the erroneous assumption that you need a pile of your own cash to start flipping houses.   

Happy hunting! 

Hey All,

The next meeting of the San Jose Real Estate Investing Club will be January 25th. Our guest speaker will be Brian Burke, CEO of Praxis Capital Inc. Anybody who has spent time on BP or listened to BP podcasts knows that Brian is a rock star in the world of real estate and he will bring a ton of great content.

Please register for this event at our web site http://sanjoserenc.com/next-meeting/

Advance cost is $10, cost at the door will be $15.

Topic: Multifamily Investing.....everything there is to know 

Speaker: Brian Burke

About The Speaker: Brian Burke went from being a police officer doing real estate investing part time, to CEO of Praxis Capital, Inc. Brian oversees the management of the firm’s portfolio of active funds for the opportunistic acquisition of single-family and multi-family residential properties in growth markets throughout the United States.

Over the course of a real estate investment career that began in 1989, Brian has consistently delivered attractive returns to his investors through a variety of market cycles. Investments range from single family homes to large multifamily apartment complexes in multiple states. The funds he manages have acquired over 700 properties – with the assistance of proprietary software that he wrote himself.

As a recognized expert in Distressed Real Estate Opportunities, Brian has been a frequent speaker at real estate forums and conferences; including the Opal Family Office & Private Wealth Management Forum, the Keiretsu Real Estate Forum and the Institute for Private Investors. He has also served as co-host and real estate expert on the Fox News Radio show, “The Best of Investing”.

A licensed California real estate broker, Brian is a member of the California Apartment Association, North Coast Rental Housing Association, National Association of Realtors, California Association of Realtors, and North Bay Association of Realtors.

Brian is married and has lived in Northern California for over 30 years. When not working to help Praxis clients build wealth, he can be found, literally, in the clouds. An avid aviation enthusiast, he is a licensed instrument-rated airplane and helicopter pilot.

About the Presentation: Brian Burke has extensive experience in virtually all facets of real estate investing. He will discuss how he progressed from his day job as a police officer and part time house flipper to flipping on a large scale (100+ houses/year) and finally to large apartment syndication deals all over the United States. Brian Burke does not normally do the "Meetup circuit" and this may be the only chance you have to see him speak and tap his experience.

https://praxcap.com/

https://www.biggerpockets.com/renewsblog/2013/01/31/raising-money-getting-started/

https://www.biggerpockets.com/renewsblog/2014/06/26/bp-podcast-076-growing-real-estate-company-brian-burke/

https://www.biggerpockets.com/renewsblog/2014/06/26/bp-podcast-076-growing-real-estate-company-brian-burke/

Meeting Agenda:

7:00 Networking (bring your business cards!)

7:15 Announcements, "Haves & Wants"

7:30 Market update

7:45 Featured Speaker

8:45 Networking

I hope you can make it!

Cheers

Hi @Victor Velazquez. In my experience when a lender or mortgage broker tells you something can't be done what they mean most of the time is: "I can't get that done." As others have mentioned, a good, investor-friendly, broker or lender will broker or provide loans that account for your rental income and allow you to offset debt right out of the gate so your DTI is jacked and provide options without the other overlays that hamstring many investors.

PM me if you like and I can introduce you to a couple of people I use. If they can't do it it really can't be done.

Cheers