All Forum Posts by: Tim Jones

https://www.biggerpockets.com/forums/521/topics/369509-merced-meet-n-greet?page=1#p2342058

Not sure what I did wrong but I created the event in the Networking area but it didn't take. Here's the details of the meet up:

https://www.biggerpockets.com/forums/521/topics/36...

I was trying to answer from the perspective of someone with 60k who feels priced out of the local market. I would definitely stay local if I were him AND could do it with that money. I definitely believe that there are opportunities in the SFBA but it might require a group of like-minded investors to pull it off. That may be something he likes and that's why I suggested it; It's just not something I would want. As for SAC, I'm not able to speak intelligently about the area so I said nothing. I don't think that Merced is the best, but it's local to me and that always helps a little.

I agree with the 15 year horizon...the UC still needs to be built out, HSR needs to link Merced to the SFBA. Who knows, maybe Elon will have his Hyperlink up by then. Thank you for your comments. It's dialog by experienced members that makes this place so special.

TJ

Yes!

Araceli Gomez

Coldwell Banker Gonella Realty

Young and hungry, very detail oriented. You'll have to Google her as I cannot post contact info outside the marketplace.

TJ

Hi Andrew,

I'm a San Jose native but have lived in Merced for the past 15 years so I have a pretty good idea of both markets. In my limited time with BP, I have come across many SFBA people in your situation.

It appears that you have narrowed your strategy to multi-family buy and hold, which I think is great! Keep in mind that I'm also headed in that direction so please allow for some bias...

Matt Hoyt is correct in that you should be able to just drive over for the day and handle your business, e.g. repairs, can't get a hold of your tenant (late rent), etc.

Robert Musallam also makes a great point in that you should be running the numbers on tons of deals to improve your comfort level. When looking out of your area, you need to know what is common for the tenant to pay and what the landlord pays in terms of utilities. You should also have a decent idea of contractor rates because repairs are a given. This info will assist you in filling in those calculators.

So now that Captain Obvious is done with that, let's discuss what you really are looking for.....what to do and why?

The way I see it, you have two basic options (for the record, there are probably 15 more options that a more experienced person could offer).

1. Buy multi-family in the Valley. You need to be able to say, "I got people" ;) I'm talking about a team in place in your given area. You'll need boots on the ground so networking in that area is a good idea. The team could be a joint venture partner who handles all the details or your own team that you manage (RE Agent, contractor, PM, etc). There are NOT a lot of multi-family properties near the UC; a huge one is about to be built at Yosemite & Parsons. If you're trying to capture the student market, SFR might be for you. I think that purchasing in the San Joaquin Valley is a good option for you as rents are increasing and the UC is pushing demand locally . As you stated, the price point is nice too. Your 60K gets you in the 240K neighborhood, assuming 25% down, etc, etc.... If you were interested in a partner that also had cash, maybe look into commercial multi-family (5+ units). You can find these on loopnet.com

2. Buy multi-family in the SFBA. Joint venture with another SFBA investor or two and get something local there, such as the Oakland/Hayward area. Are you involved with your local REIA? I noticed that Vandana Rao said she is in the same position as you. As stated before, I see that a lot. The reason I would not do this is because I myself would not like so many partners involved in a deal. I'm a hands-on kinda guy. If you are OK with maybe 3 other partners, this could be a viable option for you. Just make sure that everyone is one the same page as far as responsibilities are concerned. Definitely put it all in writing.

Either option requires you to get out and meet some people face to face. You need to be comfortable with anyone you desire to do business with.  I posted a Merced meet 'n greet on this site; it's Saturday, Nov 12. It can be found under the Community tab in Networking events.

If you need a local realtor, I have an exceptional one for you. If you want to know about any given neighborhood, let me know. I used to run 911 calls all over the city and have an in depth knowledge of the place. Although I have some money, I'm open to joint ventures and may entertain the idea of rehabbing and managing a local property. I'd also be interested in 5 to 25+ unit buildings.

In any case, good luck! Sorry for the exceptionally long post...hoping some of it was helpful to you and others.

TJ

Oh, too bad. You're one of the ones I was hoping to meet! In any case, I'm really quite flexible on the dates and times. I was just taking the bull by the horns and setting something up  and then checking to see what everybody else's schedule was. We'll see what the overall response looks like and go from there.

TJ

Hey everyone, 

Let's get all the area BPrs together for an introductory luncheon. No fees or sales pitches, let's just figure out who we are & what potential partnerships/relationships can be formed. Hope to see you there! 

Don't forget to screen thoroughly inheretted tenants. Sometimes sellers will throw anybody in there to make the deal look good, especially in a D property. 

Welcome to BP guys!! 

Step 1: Read, read, read!
Step 2: TBD