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All Forum Posts by: J. Martin

J. Martin has started 178 posts and replied 3656 times.

Post: Hanoi Meetup 9/5/16 - 9/14/16 Flexible Date - Who's in Vietnam?!?

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925

@Edwin Merino,

I did rent a scooter! It was a blast!

I didn't quite make it that far.. And in the air flying over Hong Kong now, so looks like I won't be able to make the 20 hour trek down... But I plan to be back in SE Asia this winter :)

Post: Back into Real Estate San Diego

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925

@Luis Alfaro and @Doug Napieralski,

Welcome to BP! @Chris Mason is referring to my sublease/furnished rental business. It does really well in the SF Bay.

You asked what is a good way to start, and I think he recommended this as one way to build capital if you don't have any. However, it sounds like you are running multiple businesses. So hopefully you have some capital.

What do you want to do in real estate? What kind of RE business do you want to have? What kind of lifestyle and workload do you want? The one downside about the furnished rental biz is that it doesn't teach you how to flip properties, buy properties, or wholesale. And sorta has to be done around the clock.

I recommend checking out the book on Airdna if you are interested

There are still people making money flipping, wholesaling, etc. Although the auction/foreclosure market definitely dried up. Either way, best of luck!

Check out some San Diego meetups in the "Real Estate Events and Happenings" forum, or look on Meetup, and go meet some local investors who are crushing it!! :)

Best of luck to both of you lifting off....

Post: How To Make $2 Million in Real Estate in 2 years in the Bay Area

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925
Originally posted by @Henry Pho:
Originally posted by @David C.:

@Account Closed, I didn't get a chance to talk to @Moonhee Kim.  As usual, meetup was very busy.  If I were to start RE investing today.  I would probably take the same approach as @J. Martin.  I would try to buy a 2-4 units in a B to C Class neighborhood with a good chance of appreciation over the next 2 years. 

 That's very good advice David.  I didn't know how most investors get started in the beginning.

 It worked for me. But my only caution would be that B-C properties tend to be more volatile in price, % wise, over the economic cycle (up and down, it appears).  So if you get in near the later portion of an expansionary economic period, (we might be somewhere in that general range right now) you may have to ride out the price swing on that cash flow.

. Fine if you have it and are good with that reward/risk rather than waiting. I'm a waiter right now. But I'm also not in a hurry to get in the game.. Because I'm in, and traveling the world right now ;)

Post: San Jose Meetup - Friday 9/9/16

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925
Originally posted by @Johnson H.:

Thanks for coming out everyone! We had 67 investors RSVP, the biggest meetup yet!

@J. Martin - I have a video clip of you singing, should I share it with everyone? haha

Only took me two years to take some pictures of my meetup in action :)

Depends how bad I sound!! lol

Sure, you can post it.

Can you email it to me please?

Looking forward to your next meetup Johnson! :)
*BTW, does this kind of record turnout at meetups mean it's the beginning of the end!?! lol

Post: San Jose Meetup - Friday 9/9/16

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925

Sorry I missed you all!!! I'm sure it was a great time!

In Hanoi right now! ;)

Post: Best Area to start in the Bay Area

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925
Originally posted by @Sam Shueh:

High turn over.  Intermittent income, higher maintenance. Steep professional expense eviction, legal expense.

I will stick to neighborhoods with high income. Lower ROI and higher appreciation rate.

Zip 95129, 95117, 95130, 95128 condos, th are where I will start and move up.... Multi units appreciate lower.

 Interesting Sam. Your experience in Richmond and Oakland has been different than the experiences I had at my properties there. But to each their own! I think the appreciation on these lower-end properties has been higher than higher-end properties since the downturn, but to each their own also ;)  And Uber's finally coming to downtown! I thought that's what finally gave the Silicon Valley folks the OK to come hunting up in Oakland!? lol

@Arlen Chou, you're already drinking the Oakland Koolaid! Don't start swallowing my Richmond stuff too!!! lol

Post: Owners open to sub-leasing in the South Bay Area.

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925
Originally posted by @Kent Baltare:

@Account Closed that networking and developing strong relationships is a key first step and that those efforts with networking will likely be rewarded with these kinds of amazing opportunities.

J. Martin, my background is in economics so I do have some thoughts on your comments about economic cycles and this REI model.

I tend to think the economics in the South Bay are strong for this strategy but my thoughts on that may differ from yours..

Due to high home costs our local market, investors struggle to maintain cash flow under standard lending conditions/structures.  With that said, allowing owners a % of anything you can make over market rent as furnished corporate rental is a unique play that can be used to attract great home owners with GREAT properties (Win/Win).  This strategy is a bit different than yours (I believe) but it relates to maintaining your supply of strong/highly marketable properties. 

The demand for a corporate rental is a different conversation which is subject to local business, but two things here:

1)  If the property is located in an area where only a handful of businesses would likely require its use, you are a lot more sensitive to local market pressures/economics compared to a place that is close, proximity wise, to not only multiples businesses which could demand your property but also multiple industries (Ie: tech, hospitals, finance, etc).  I think focusing on that initially is a good way to cover yourself in economic downturn, by being very picky. 

2)  Personally I would also think of other locations where the economics of the area are such that this model could work out great, and determine if you have any contact(s) there with a strong RE network?  Consider partnering with those people by providing the capital for lease/furniture, and have them take care of the property (owner) search + tenant search, then come to an agreement on cash split and responsibilities, go from there..

Long answer short, I don't feel that local economics should slow the implementation and growth of this/your model, but doing it with the right properties locally and also diversifying with operations in different markets will help cover your exposure if things start slowing in a specific industry within a specific market.

Hope that helps.

Kent.

 I agree about diversity and potential for other markets.

But the biggest cyclical/economic issues here, IMHO, you did not mention:

Hotel rates, execustay rates, Airbnb rates, and other furnished rental rates are higher during an economic boom. And lower when there are job losses. Even if the volume is still there, the rate will suffer, IMHO. I haven't really seen this model tested in a downturn, so not sure if I want to go into that with 100 unit, for example.. I'd like to keep all these apartments in the next downturn, at a reduced profit, then blow it up during the next boom..

Post: Huge RE Networking Summit! SF Bay 8/27 & 8/28/16 - 20 BP Greats!

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925

@Ori Skloot and @Dawn Anastasi,

Thank you for the feedback. Ahhhh.. time and money.. I can probably work out ending most of the speakers at the same time. And will try another food truck or two next time also. We can also have some more targeted networking. I think all of these are achievable.

Putting more time in between each speaker would require either:

a) Fewer speakers
b) Fewer solo speakers and more panels
c) A third day, like Friday, which adds a lot of cost and planning also - with limited attendance for a weekday

@Rizalene Acosta, sorry we couldn't spend time at the Summit! Ya! I was pretty busy!! ;)
Glad you enjoyed it so much though. Congrats on the new baby. We'll be starting meetups back in SF when I get back from Hanoi! :)

Post: How To Make $2 Million in Real Estate in 2 years in the Bay Area

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925
Originally posted by @Account Closed:
Originally posted by @Myo Thein:
Originally posted by @Minh Le:

My friend @David C. suggested that instead of answering the same questions over and over again, why don't I hold a "No Hold Bar REI", where I share EVERYTHING about MFH acquisition, deal structure, value add or not, cash-out refi, rinse and repeat?

@Account Closed you have to do this "No Hold Bar REI". It was great catching up on the tail wind of you and

@David Faulkner talking about this topic during summit.

Myo,

It was nice seeing you at the summit a couple of weeks ago. This summit was definitely even better than the one I attended in 2014. Hope you learned a few things from the veterans and vendors.

It's pretty crazy how we could structure these MFH deals. If you told me I could do this a few years ago, I would have said you're crazy. @J. Martin was the one that hooked us up with a $1.725M loan on a $2.3M deal through one of his contacts when our loan broker dropped the bomb on us 20 days into contract.

We wasted no time, reached out to his contact right away, went to lunch with him and his associate the next day. The following day, we received their LOI. We asked if they can close the loan in 35 days. They put a rush on the appraisal. When it came down to the wire, they said they could close it in 28 days. 28 days for a commercial loan? Who said it's not possible? Three months later, we refinanced the deal, appraisal came back just over $3M. We did a cash-out refi, pulled out over $2.1M cash and paid-off the initial loan. Whew, that was a close one.

Once you got this game figured out. It's just rinse and repeat. Funny how this game will give you new ideas that you didn't think was even possible just a few short months ago. I've shared this idea with @David C.. He thinks it's very possible. @Johnson H. will help us accomplish it. Also, these two gentlemen will help me with the "No Hold Bar REI" thing.

People ask how much money has BP made for you? For me, not much. However, what BP has made for me was some invaluable friendship. Some of them have become business partners. Some will become business partners. Some have invested with us. I wouldn't be surprised some of them will forever be my friends and business partners. How much does that worth? Can anyone put a value on it?

 Hey Minh. Thanks for the shout out on the Summit.

"This summit was definitely even better than the one I attended in 2014"

But wait, was the last one just not that great..?! lol

You've been a great mentor and friend. Glad I could help out on the loan ;)

On how much being made from BP, I will second what Minh said about friendships and business partners, and have definitely made a lot more money myself because of BP.

I'd almost certainly still be working my W2 job if not for people I met on BP. So I partially owe my life of traveling to it!

@Joshua Dorkin and @Brandon Turner, you can quote that!

Post: Ohio Cash Flow

J. Martin
#1 Real Estate Events & Meetups Contributor
Posted
  • Rental Property Investor
  • Oakland, CA
  • Posts 3,834
  • Votes 2,925
Originally posted by @Chris Clothier:

Just wanted to throw a quick note out to the readers here on BP and those searching or asking questions about Turnkey companies.

I have met with dozens across the country over the last few years and many that are no longer in business.  There are some that I am a big fan of the owners and the business because they do things the right way and I believe that if they follow their paths and stay true to their actions, they will continue to grow and prosper.

I had the pleasure of spending some time with @Engelo Rumora in Oakland a couple of weeks ago at @J. Martin 's real estate summit, which was a fantastic event btw.  

I came away impressed with Engelo's passion and commitment to doing things the right way.  I found him sincere in his desire to truly deliver what his clients' expect.  Without a doubt, he is willing to work and work and work and absent any real secrets to success in this business, that is a huge differentiator.

We had a lot of time to talk about best practices, what we've learned after 13 years building Memphis Invest, how we manage almost 4,000 properties and the challenges he is going to face as his company grows.  I was very impressed that his true to desire was to build a great company. 

When I finally landed back in Memphis a few days later he had sent a thank you gift for taking the time to hang out and share.  A class move for sure.

So this is unsolicited and, although I have not been to Toledo yet to check out the operation in person, I will be heading there soon to check out the great things he is doing and put my eyes on his business.  From a purely personal standpoint, Engelo is a stand-up guy who I believe is going to keep building a high-quality Turnkey company.

For the readers, take that .02 for what it is worth when you are investigating Turn-key companies to work with.  

Chris & Engelo, you two are great! And this is why I love BP and the investors on BP so much.

Everyone flies out to Oakland to share and discuss at the Summit. Some have similar businesses. We're all in real estate. But it's not a fight to beat each other out. It's a network of partnerships, knowledge, and resources to find what's best for each person. To share. To grow. To learn.

Honored to have been a part of the process to bring everyone together. And to be among the likes of all you stand-up business people :) 

You're both more than welcome back for the next Summit! (if I can afford Engelo's future speaking fee on my $0 speaking budget  ;)