All Forum Posts by: Johnson H.

Looking forward to meeting you @Mai Vo and seeing the other 30 investors there tomorrow!

Hi Geoffrey, there are lots of buyers just on BP lurking around. I would post on the market place! At $100k, I was very interested until I saw the somewhat high HOA fee and pool. If you have anything else without a pool in a good school district, I would be interested at a good price.

Thanks for the tag @Account Closed. @Sandeep S. would be very interested at the right price, I would be fighting him for these properties I bet. 

@Abhay K. @Peter K. @Yuliany W. @Account Closed @Ezra Nugroho @Sandeep S.

Thanks for responding everyone. I'm looking forward to seeing you guys next week. Go Warriors!

Kris, in my opinion, using the income approach with the cap rate is not the right way to value properties in San Francisco 4 units and less. There are different values for SFH, condos, duplexes, 3-4 units, 5-8 units (some would say there are niche pricing in 5 units and 6 units), and 9+ unit buildings because of different factors for each sector. The best way to value 3-4 unit buildings is using the sales comparison approach with nearby sales comps with similar attributes to the property. Although there isnt any equity in the deal, the terms make the deal interesting for me, PM on the way.

@Leo B. - I have not been able to find a true 5% cap rate property in San Fransisco excluding SRO's and buildings in the Tenderloin. Usually, the listing brokers cap rate is inflated and using more realistic numbers I come away with a 4% cap and lower. Where have you been finding these 5% cap rate properties, I would love to know!

Hi Kris, if this is really near a Google bus stop and the units and building are in good shape, with the vacant unit I believe $1.6 million is about market price for the property. If this goes on the MLS, it will appeal to some buyers looking to owner occupy a unit.

The current tenants may leave tomorrow or they may never leave, that is the game in SF these days, you just never know. The deal becomes very interesting if you can get 100% seller financing. If you have other cash flow coming in and good amount of cash reserves, I think it maybe a good play. You are right that you wouldnt be able to condo convert until possibly 2024 and the only exits would be selling the property outright or selling each unit as a TIC.

It takes nothing for you to lock it up and you lose nothing if you cancel the contract within your due diligence period so I would listen to your mentor and lock it up and think about it some more. If you want to partner up on it or pass on it, please let me know, I would be interested.

@Account Closed - Have fun with your mediation, sounds like an interesting process. Everyone will just have to talk about how much they wish you were there. I'll leave a plate of steak nachos for you :)

We can't have a meetup without you Minh! First time you might be missing one. I wanted to make it on Friday but I saw both you and J going to the Santa Cruz meet up. Very sad to not have the SJ guru at the SJ meet up!

@Account Closed @J. Martin @Ezra Nugroho @Sandeep S. @David C. @Jay Y. @Peter K. @Kevin Auyong @Susan Gong @Kathryn M. @Arlen Chou @BeBe Cheng @Helen Chau @Abhay K. @Dooreuhn Cee

@Yuliany W. - You are going to hate me but I had to put it on a Thursday again. Friday is the Santa Cruz meetup and I didn't want to step on their toes! Also, I had to cancel the contract on the Tracy property. I can tell you more about it if you can come out!

Hi All,

It's another month and time for another real estate meetup! These meetups have had 15-40 BP and Meetup.com members chatting about investing in the San Jose area and also out of state. Bay Area and out of state investor @Jay Y. initially suggested this meetup and I have been keeping it going ever since. Regular experienced investors such as @J Martin from Oakland and @Minh Le in San Jose have been regularly attending. We welcome anyone who would like to attend!

When: Thursday, June 18th, 2015, 7:00pm

Where: Whispers Cafe and Creperie (Outside Patio)

(The cafe is in the same complex as City Sports and in the same building as Five Guys on the opposite side of the building.)

1085 E Brokaw Rd
Ste 10
San Jose, CA 95131

Please support the small business by spending some money and tipping for the great service we receive every month!

Looking forward to meeting new investors and seeing familiar faces.

Regards,

Johnson

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Sandeep, congrats on your success in Houston and thanks for sharing it with all of us. Sounds like you have excellent cash flow and you were able to cash out almost all of your money into it. 

As for financing, I thought you had found a local bank to help you with your financing?