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

[Account Closed]

My partner and I went out to lunch with one of our agents who sold us 2 buildings last year. He asked how much do we cash-flow on the buildings? We looked at each other and said we didn't know. You've gotta be kidding me was his reply. We said nope. That prompted me to run some numbers. Here they are:

$2.25M invested in 5 deals totaling 36 units

$1.2M cashed-out (the proceeds went back into new deals of course)

$1.05M cash still tied up

$6.475M in total acquisitions

$8.9M appraised value

$110k/year net cash-flow after all expenses and reserves

$9.9M estimated value once fully stabilized. 

This is for 1.5 years worth of work. First acquisition was in contract in Feb 2015 and closed in May 2015. Last acquisition was closed in May 2016.  All deals are right here in San Jose.  This is for individuals who say there are no deals in the Bay Area.

I've shared details of the deals with some close BP friends. In fact, I've given them a tour of these buildings.  Of course I will not debate with people who say there's no cash-flow in the Bay Area and appreciation is speculation. I'll let the results speak for themselves. 

[Arlen Chou]

@David Zheng why are you throwing shade at somebody you don't even know? @Account Closed is tearing things up in the SF Bay Area the old fashioned way: through excellent capital raising skills and honest relationship building.  The guys seriously knows how to make money grow, find and analyze deals and frankly put most of us, including myself to shame.  Spend some more time and look at all of the guys investing in CA and making serious money.  @J. Martin is another great example of somebody who is just blowing the doors off of everybody in a very short period of time, and doing it here in the SF Bay Area. The guy started out in the red just a few years ago and is so deep in the black now he retired this year! He even has the time to put together one of the best REI Summits around. I would highly suggest you invest the money to come out to the next summit and meet some of these movers and shakers before you make general statements about the skills of people making serious coin in CA. If you do come out, I will buy you a beer and personally introduce you to some of these successful guys so you can get a flavor of the knowledge and skill required to make it big in this market.

-Arlen