All Forum Posts by: Johnson H.

@J. Martin Congrats on your achievement! I think your passion, persistence and out going personality puts you at a level above and beyond many investors here on BP. It's not easy doing what you did in when you first had the Richmond fourplex. I'm sure you encountered many naysayers but you found yourself a niche and exploited it. You've spent a lot of time doing due diligence as well, which many others here don't see, and not just time in front of the computer but boots on the ground which many don't/won't do. Just promise me you'll watch your leverage and come back to the bay when you can! 

Have a great time traveling J, you'll love it, get those credit card hotel and airline bonuses, they have gone a long way for me in traveling on the cheap!

@Michael L. - Thank you for sharing your turnkey out of state investing experience with all of us. Reading though your thread, I can see some similarities with my investing experience. I have been investing in Phoenix since 2010 without a turnkey provider but with a property manager. Reporting can sometimes be iffy by the PM and sometimes need clarification on issues. In addition, repairs will always come up, I've had to replace four AC's and a roof since I've started investing. There have been many minor items like a dishwasher that seems to always back up, leaking water pipe underground, garage door issues, etc. I have five properties with the same PM, so I would think he takes care of me a little bit better than most and especially this year since I am selling a few of them, he wants that commission check :)

An out of state investor must realize that no one will take care the property as good as yourself. You wont always know everything that is going on with the property until later on. Also, if you only have one property with the PM, do you really think the PM will give you the royal treatment versus other investors with multiple properties? Being PM is not an easy job, if you get paid 7-10% a month on $1000 rent, the time spent on the property will be limited. 

That said, investing out of state has still been fruitful for me but new investors looking into investing out of state need to have their eyes wide open going in, its not as passive as you think it will be. 

@Jay Hinrichs I tell some investors that are starting out what are they looking for? If you are young and looking for easy retirement income but don't have time and scared of investing out of state, why don't you buy a house close to you, manage it locally 5-20 minutes away, and in 30 years you'll have a free and clear house paying you every month. It won't matter how home prices swing as your rental is free and clear. I tell folks real estate investing can be as easy or as hard as you want it to be. This isn't the sexy get rich quick option but real boring. However, many small time investors did this in the 70s and 80s and are now enjoying their rental income, low tax assessment due to Prop 13 in CA and are paper millionaires.

Anyways, thank you to you and Amit for sharing the past. Next few years will be interesting. I tell myself that this is my first cycle and I'd rather be a year early than a year late in getting out and I am setting myself up for success with planning for the next opportunity now.

I should let this thread die as the meetup is cancelled but wanted to thank the two of you again.

Good point @Jay Hinrichs, there are still many places in the world more expensive. Just a few hundred miles away in Beverly Hills is a good example. I got conservative way too early in this cycle, I'm looking forward to the next down cycle to load up on assets. What does your crystal ball say about the end of this cycle? Do you see any cracks in the economy yet? 

@Jay Hinrichs - I'm not the developer and have no involvement with them, that's just what he told me! But you guys are use to the rain, people down here haven't seen this much rain in years.

From what I hear from investors that have been around for awhile, seems like PA and SF have always been expensive. Appreciation may take a breather during a down cycle but home prices always continue to trend upward and always make higher highs and higher lows. The question is how long can this last? I can't question past performance, maybe I need to drink the cool aid and believe appreciation will continue to make higher highs in this market.

I wanted to let everyone know that this meetup has been cancelled. The rain has caused the construction of the house to be delayed. Stay tune for this to be rescheduled!

I'm here already, join the three of us if you want! Most people show up at 7pm.

@Albert Zheng - Thanks for joining us last time and I hope to chat with you more tomorrow night!

@Jay Hinrichs - Wouldn't have been nice if you held on to the one you had in Baron Park? I wonder where prices will be 20 years from now for the area. Can the market continue to increase every decade? What are your thoughts on this Jay?

In addition to the regular monthly meetup, this month we have the treat of viewing a brand new construction build in Los Altos! Aron Developers bought the property in May 2015 and have worked diligently to tear down and build a new one-story, 5,100 sqft home on this beautiful half acre lot. This home has traditional exterior and contemporary finishes in the interior. It has 5 bedrooms, 4.5 baths and a theatre. The home offers luxurious finishes throughout the house and the family room opens to a flat 5,000 sqft backyard.

When: Sunday, March 20, 2016, 1:00-4:00pm

Where: 315 Quinnhill Rd, Los Altos, CA 94024

Aron Developers is a real estate developer which focuses on building luxury homes in San Francisco Bay Area. They have finished four homes with eight more under construction. They have also raised $15 million via crowd funding and private investments, with projects valued at $42 million. For more info, please visit their website here: https://www.arondevelopers.com/

Feel free to come by and meet the developers of this gorgeous project. Light drinks and snacks will be provided. Please RSVP so we can get an accurate headcount here: http://www.meetup.com/SF-Bay-Area-Real-Estate-Investing-Club/events/229429501/

Thanks,
Johnson

Disclaimer: The host has never done business with the developer. Please do your own due diligence in any investment.

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