All Forum Posts by: Sanjeev Advani

@Anthony Keys this is definitely one of the best places to come and get some advice on real estate! Congrats on getting started.  As far as books are concerned, BP has their own book series that they put out that is highly recommended.  There are many different investing books that are pertinent to different people using different strategies, etc.  What are you looking to do?  Do you have any investment property currently?  

Feel free to PM me as well with any specific questions. 

Best

Sunny

@Mike Franco it sounds like you have a pretty good plan already in place with your purchase and rehab plan, however, I think you might be able to simplify that plan and start buying cash flowing properties at higher cap rates rather than having to fix them up and get returns as well.  

For example, if you take your $1M cash and leverage that you would be able to purchase around $4M in real estate.  Based on that $4M purchase price, you should be able to purchase around 16 homes in Bakersfield producing an average rent of $1700/month/property.  If cash flow is not your end goal, then this could be a good option for you. 

If you are looking for cash flow then a variant of this strategy could also work well in the Bakersfield area.  Since you are also retired, it might be best to give those properties over to management and let them handle the headaches so you can retire in peace and your investments are being watched after until your kids decide to retire in the next few decades.  

I would also look at Bakersfield because of the appreciation potential over time.  Not only are we a fast growing city right now, but one of the larger cities in CA.  With all of the future development coming, I believe that there is a lot of growth potential moving into the future for Bakersfield. 

Feel free to PM me to chat further as well

Best,

Sunny

@David T pisarra - You are definitely going to be in a much more landlord friendly environment than Santa Monica out here in Bakersfield!  If you are looking to purchase a property and you have tenants in that property, but you need to move into one of the units, you can remove those tenants with a simple notice to vacate with the reasoning that you will be moving into the property yourself.  This has to be done once the Tenants lease expires, but it is still possible.  

If your tenant is still in their lease agreement term, then obviously things will change as they are going to breach contract if they leave early, so you will have to allow them permission to leave early with no repercussions, and a lot of the times (as you mentioned) cash for keys is involved.  

Depending on the area, it could be as little as a few hundred dollars for the Tenant to be happy and move, but it could definitely go upwards from there depending on where the tenant will go when they leave your place, how much that new place will cost, and the costs associated with actually getting over to the new place.  On top of that, there is most likely going to be a "hassle fee" that the tenants will charge you because they are having to do something that you want them to do. Feel free to PM me if you want to chat further as well. 

Best

Sunny

@Keaton Smith this sounds like a pretty lofty goal to be honest.  I tend to agree with @Jesse Daconta that it may be hard to cash flow at the rate you are expecting and still be in neighborhoods that would be viable to invest in.  That being said, it is not impossible.  I would say that to mitigate your expectations, I would expect something around a 15% gross return and expenses would be taken out of that.  Even with an expense ratio around 30% you would be left with a total net return around 10.5%.  Bakersfield is definitely an area that is growing and the market is hot right now.  With all of the recent distribution centers and the plans for Bakersfield moving forward, I would not be surprised to see more capital flow into the area.  Most people would not know, but Bakersfield is one of the larger cities in CA and being within such a small distance from LA and the Central Coast I think it is going to be a large hub for people moving forward in the CA real estate market.  Please also feel free to PM me if you would like to chat further! 

Best of luck!

Sunny

@Megan Wilkerson congrats on the complex.  Right now the downtown area, specifically the Oleander neighborhood is pretty hot and people are looking for buildings in that area all the time.  To go into a few questions you asked, it really depends on the mix of the property and the rents that you are currently getting already.  For example, if you looking to put in brand new cabinets and counters, but you still have the old 1940's stove that doesn't work very well then it may not be the best upgrade to do before you update some of the more used systems in the house, but that being said, over time you are going to want to make the units look nicer to attract higher rents and higher quality tenants.  

As far as insights on Bakersfield, the market is hot right now.  Pretty much across the board, which means that if you are looking to sell that you will probably get a really good price, but if you are looking to keep the property the vacancies that get filled will also be highly sought after.  

If you have any further questions about the Bakersfield area you can feel free to look at my previous posts as well, or PM me if you have any further questions!

Best of luck and congrats!

Sunny

@Leland French when you start generating deals give me a call!  Feel free to PM me as well! Best of luck!

@Brandon Carlson I would check out Bakersfield because of the growth of population and job opportunities as well as the development over the next few years.  You can see a few of my previous posts to help along with that.  Feel free to PM me if you have any questions as well!

Hi @Saul Dueñas

Glad to see you are looking in Bakersfield.  There can definitely be a lot of do's and dont's.  Do you have any questions in particular? 

Please feel free to PM me if you would like to chat further.

Best of luck.

Sunny

@Bobby Light if you havent looked at Bakersfield before, I think its a place you should check out.  All of the development going on is going to lead to long term growth, and jobs.  We have so many new large businesses coming to town the potential is really high, and on top of that, you have investment categories for each type of person who is looking.  

You can see a few of my previous posts for reference.  If you'd like to chat further please feel free to PM me!

Good luck on your search!

Hi @Payman A. 

Congrat on this potential deal and if it is something that you like, then I hope you get the deal!  If you are looking in Kern County I would have to recommend Bakersfield because of the new industry coming into town, the development that is going on around town, the low citywide vacancy right now.  We are seeing that clearly this is a place that people will flock to when things happen in the more Primary economies in California, which in my opinion, is a great sign for the stability of the area.  

Congrats again!  If you'd like to speak further about Bakersfield feel free to PM me as well!

Best 

Sunny