Are There Still Many Motivated Seller's in West Oakland, CA?

[Raquel Pea]

Hello BP,

I currently work with a Bay Area Wholesaler, and soon I hope to start up my own wholesaling business in order to raise funds for investing. Here is my concern: I am not confident there are many motivated sellers left in West Oakland, which is where I would like to concentrate my efforts. The market here is so hot! It seems the majority of homeowners here are aware of the gold nugget they have in their hands, and will not settle for anything less than market value. Home prices are rising fast, Victorians are being flipped left and right, and the West Oakland Specific Plan will be underway soon.

Since I would like to focus my energy in West Oakland, would it be wise to get my real estate license and become a salesperson rather than seeking highly motivated sellers in hopes of wholesaling properties? 

I do understand that no matter what path I chose, there will be lots of hard work and sweat equity involved. I do not want to know the "easier" path, but rather the more efficient path with regards to doing business in West Oakland.

This is the market that interests me most, and I would like to focus on understanding my niche market to become an expert in my area.

All the best!

~ Raquel Pea

[Raquel Pea]

@Rob Hoffman Glad you decided to join the conversation and found the information useful!

With regards to how West Oakland's gentrification will affect greater East Oakland's development, it very hard to tell... But here are my two cents:

The majority of gentrification seems to occur where two things exist: 1) An excess of deteriorated homes in a central location and 2) Availability / proximity of professional jobs located in central business districts. Check out this East Bay "Gentrification Heat Map" by UC Berkeley Researchers below. Every pocket of gentrification (dark purple areas) can be seen to occur near a BART station or with easy access to a major highway.

It's obvious how West Oakland fits this criteria. Embarcadero, the financial and business heart of SF, is a mere 7 minute BART ride away from West Oakland BART station, and Downtown Berkeley a 14 minute BART ride away. West Oakland also has direct access to the bay and thus the San Francisco Bay Ferry, and for those looking to drive to work, the 80, 880, 580, and 980 are all a short scoot away. 

East Oakland, on the other hand, comprises a very large and spread out area, as seen in the highlighted area below. Within East Oakland there are distinct areas like San Antonio, Fruitvale, Central East Oakland, etc.

I believe the areas within East Oakland most likely to be developed are the Fruitvale area near the BART station and the area inland of the Coliseum BART station. In fact, both of these areas already see the beginning of gentrification. There are development plans covering hundreds of acres in the Coliseum area which include new stadiums, tech offices, luxury condos, hotels, and retail space. The hope is to create 30,000 new jobs in the area, and boost economic growth. Keep in mind, though, that East Oakland is still in the very early stages of gentrification. Here is the Coliseum Specific Plan project description:

You can read more about it here.

Of course, there is always worry and backlash when it comes to gentrification. Just like West Oakland, the process of developing areas within East Oakland will be arduous and cyclical, and for good reason. The inhabitants will want to see that their cultural history is preserved, that "Big Box" retailers and business do not take over their home town or overthrow the small business that define the area, and that ultimately they are not displaced to make room for the capitalist world.

I'm not really sure what to expect in regards to when East Oakland will see major changes or an influx of investors, but it is sure to happen in areas with access to major modes of transportation, most importantly BART, and where there is potential to develop deteriorated homes and infrastructure, ultimately drawing in investors such as ourselves!

Again, just my two cents. :) Hope this helps in some way or another!