All Forum Posts by: J. Martin

ATTENDEES SO FAR.. THANKS FOR GETTING YOUR TICKETS! 
1) TAG A FEW FRIENDS PLEASE, and your favorite speaker
2) Click "attend event" at the event headline at the top of this page, so people can see your profile..
3) Add the Summit URL to your BP profile with a shout-out if you really want to help out ;)

IT'S GOING TO BE AN AWESOME TIME!!!
First, to my moderators.. Thank you!

@Arlen Chou, @Shane Pearlman, @Johnson H., @Jeff Pollack, @Christopher Porto,
Attendees, stoked to have you all out! And a special shout-out to @Sergey Tkachev! You too @Troy Fisher! Thanks for helping spread the word! And of course @Daniel Hernandez, @Al Williamson, and @Michele Ling for helping on planning :)

@Benjamin S., @Jose Belman, @Brandon Foken, @Danny Duran, @Account Closed,  @Timothy Farrell, @Charles Ma,  @Raimondo F., @Anna Myers,   @Matthew Ryan, @Account Closed, @Tony Rishell, @Nawien Sharma, @Omi C., @Matt Mason, @Julia Latreille-Favre, @Ben Dunning, @Doug Chinn, @Ofer Dallal, @Debby Chen, @Bing Lee, @Tim Kunz, @TOny Y, @Ryan Arth, @Stan K., @Ganesh S., @Peggy Liu, @Kathy Kalaba, @Neil Evangelista (thanks for help volunteering!) @Igor Zaytsev, @Amar(deep) Sandhu, @Rahul Bhatt, @Penn Viengxay, @Jody Ryden, @Sandeep S., @Raman Bindlish, @Sandeep Arora, @Andrew Cabello, @Katie P., @Warren Tseng, @Enrique Saucedo, @Faiz Sadez, @Kali Braunschweig, @Michael Merritt, @Gabriel Baltierra, @Richard Townsend, @Aaron Henretty, @Charlie Brown, @Navraj Bawa, @Avineet Garg, @Amar Sandhu,

And quite a few others from outside BP.. ;)

We'll have 300+ attendees from around the Bay Area, CA, and country, in addition to about 30 awesome speakers to connect with! So don't miss it!!

www.sfbaysummit.com

@Noam Birnbaum,

Have you gone down to the planning dept at Frank Ogawa and talked to them? They'll show you the zoning, set-backs, FAR, and a bunch of the other requirements you'll need to fit within. It's the best place to start.

I agree with @Ryan Hopkins on his advice, and don't forget that you will probably be adding more value to your property than the construction cost. You can probably even finance it, and earn great positive cash on cash on the rental. What neighborhood of Oakland is it in? Just looking at the payback on the capital, without added value to the property is only half the equation.

You might be able to find a builder out in Stockton that will commute in.. But hard to find good work at a decent price.. @Nhi Nguyen, @Christopher Porto, @Shiloe B. might have some ideas on building costs..

 I also put a backup lockbox with keys at each property for the lockout issue, since I don't have electronic locks on every gate (preferable), like Al said. This has to be one of the most common issues...

Also, it seems that smaller apartments and room rentals tend to have less of the "group" issues, like parties, people being loud, etc. I have been very fortunate on this side.

Also, setting it up more friendly for business travelers (like documenting fast wifi upload/download speeds, having a good desk space, possibly wired internet also, an inexpensive printer, etc.) And renting to longer term travelers (weekly, monthly.)

Not sure many of these are feasible in West Oakland and North Oakland where I think you have most of your stuff Juan..

@Raquel Pea, how about you..?

@Troy Fisher,

Bringing down the Seattle / Washington State REI train to the Summit!!! (literally or figuratively) Awesome!! I love it! @Samantha N. , you won't be able meet all these speakers and attendees in one place for the rest of your life!! Hope you can make it :)

@Karen L., yes the tickets went up from $245 to $275 for the rest of June only (less than one week!), then will be more!!! Typically, a one-day event is $300-600, so its reasonably priced I think. More importantly, it's worth your TIME. One little idea, strategy, or connection should make you tens or hundreds of thousands of dollars or more (that could be a deal or two). Either way, you'll build relationships, learn what very successful investors are doing, and have a great time :)

Did you see the lineup of awesome BP podcast interviewees..?

www.sfbaysummit.com

And just added @John Fedro on mobile home investing, a tiny home community builder, syndication lawyer, and a few more to be announced!!

CHECK OUT THE CHARTS SIX MONTHS AGO VS TODAY, BELOW

https://www.biggerpockets.com/forums/311/topics/26...

@David Faulkner

You hit the nail on the head with low affordability with low rates, and something has to move if things continue like this - but that's mostly in the Bay Area and other high-price metros, whereas nationwide affordability is not as bad.

I appreciate the concern @Rich Baer, but I'm a bit more in @Jay Hinrichs camp, that there is all kinds of money available for well-qualified borrowers, but the underwriting is still much better than pre-crisis, and the credit is not as widely available..

It is true though that financing terms are getting looser. SF Credit Union is providing high-balance 0% down loans for SF owner-occupied purchases (to well qualified borrowers). There are some prime minus 1% HELOCS available up to 90% in the Bay Area, and they will even count some of your vesting stock options as cash flow towards your DTI! (But they want you to have tons of cash reserves/liquidity and net worth). @Minh Le shared a lender with me who is doing 70% LTV investor loans, stated everything / no doc (in CA, and at 7+%). That's getting a little closer to what it used to be, although a lower LTV..

Nationwide Employment

Employment is still growing, and home price appreciation nationwide is more in line with prior cycles, rather than the last boom where you can see appreciation was off the charts.. Employment growing at about 2%, and home price appreciation around 5%, after accelerating, then flattening out.. However, you can see the appreciation is in line with prior normal cycles, although employment growth and economic conditions are not as booming, so there may be more of a disconnect between economic reality and home price appreciation if that continues.. 

Bay Area Jobs, RE, & Economic Conditions

You can see that economic conditions, employment, and RE prices seem to all be decelerating from their peak growth. Numbers are still positive, at a slower growth rate than previously, but still healthy. We'll see if they continue their deceleration. It would be very tough to see one of those 100% increases you see after unemployment is at its highest, since we have unemployment reaching its lowest levels now, where prices tend to flatten, decline, or pause in succeeding years..

CA unemployment

CA unemployment usually only gets as low as about 5%, and we're just about there!

Nationwide Employment

Employment is still growing, and home price appreciation nationwide is more in line with prior cycles, rather than the last boom where you can see appreciation was off the charts.. Employment growing at about 2%, and home price appreciation around 5%, after accelerating, then flattening out..

Bay Area Jobs, RE, & Economic Conditions

You can see that economic conditions, employment, and RE prices seem to all be decelerating from their peak growth. Numbers are still positive, but at a slower growth rate than previously..

CA unemployment

CA unemployment usually only gets as low as about 5%, and we're just about there!

I'd rather be buying real state when the line is up towards the top of the chart, than when it is near the bottom right, and is going to have to flatten, then head towards the top right part of the box.. See how it goes..?

https://www.biggerpockets.com/forums/311/topics/26...

@Scott Spicer,

@Johnson H. and @Jeff Pollack also have great meetups in San Jose, and Johnson is hosting my SF meetup while I'm gone..  and yes! The Summit in August is going to be awesome!! Thanks for the shoutout @Chris Mason and @Ryan Landis. ! There will be investors from all over the Bay Area, CA, and around the country - so in state, out of state, notes, mobile home parks, tiny home communities, flipping, multifamily, etc will all be covered! Come out and meet some locals! :)

 I bought the 4plex on New Years' Eve 2012, so prices were lower.. Yes, it needed about $30K of work. All units were vacant. You can still buy at about the 1% rule in Richmond on 4plexes though, after you increase rents.. today!!!

I'm also doing some furnished rental stuff, so that helps a lot ;)

 To find out what kind of loans you qualify for, you need to speak with a mortgage broker or banker. I have a broker I use that shops my loan around to different banks. Guys like @Chris Mason on BP know their stuff well. But you really need to provide your documentation to fully know what you will qualify for. Regarding downpayment, fortunately, SF Credit Union is also doing high-balance 0% down loans for homeowners in SF!! So never fear!!! lol

And if you will have a high-paying job, you should be able to save up $50K (or borrow from someone and backfill it..) Then rent out some bedrooms in your place, and you're set to go!! ;) Where there's a will, there's a way :)  Hope to see you out at the Summit in August also! :)

 Hi Peter, I'm traveling around the US right now and will be back next month, or I would sit down and have some coffee with you ;) But feel free to give me a ring or tag me on the forums. I own properties in the East Bay in Richmond and Oakland. Folks like @Andrew Fingado are buying in Stockton right now, although I think @Erin A. might be doing something else out that way..

@Al Williamson and @David Oldenburg run meetup groups in the Sacramento / Roseville area, which is another popular "out of bay area" investment. And there are still people snagging deals up there (and here, but harder - talk to Arlen and Minh!!)

If you're talking more about Wisconsin, @Dawn Anastasi knows Milwaukee really well..

The kicker is that all these people will either be speaking or attending the Summit, so you can talk to them all in one weekend!! ;)  Glad you're excited about it too!! Really looking forward to it!! :)

Gloria, have you been out to @Johnson H. or @Jeff Pollack 's meetups in San Jose? Hope you can make it out for some networking with the rest of us!! :)

@Justin Louie,

I've been working with some investors like @Arlen Chou and @Anthony Addessi down on the peninsula, and while prices are high - let me tell you there is lots of demand in all kinds of different areas of the market, and there are investors squeezing out cash flow in the area by finding the right below-market-rent properties, remodeling, and riding the wave...  @Account Closed 's meetups are worth going to down in San Jose.

Ironically, all these guys will be out at my Summit in August, along with a lot of the awesome BP podcast folks, so hope you can make it out for the weekend! (hopefully Minh too, although he's still in bday limbo ;)