All Forum Posts by: Brent Tarnow

Hi Leo,

@Julie chroust is an incredible lender, and a terrific person. You'll be really well-taken care of, especially because she is a leading FHA lender in the Bay Area who understands the ins-and-outs of 203Ks. You won't be disappointed!

Brent

Hi @Sud Raj, I've invested in Oakland over the last couple years and have found it worthwhile so far.  I don't think it's necessarily "too late," as there are opportunities in any market.  We're probably not going to see the massive appreciation that took place over the last 5-10 years, but there are still cash-flow + modest appreciation opportunities out there.  

I've focused mostly on North Oakland -- Longfellow, Temescal, Bushrod -- but I would also consider looking around Lake Merritt.  For millenials or tech workers, it's probably important to be around BART and/or casual carpool to get into the city.  I think the neighborhoods close to transit will be slightly more resilient that those further away, since you will be betting on the Bay Area (and access to SF) rather than Oakland remaining hot in its own right.  

Good luck.  Let me know if you ever want to connect to discuss investing in Oakland. 

@Virginia F. Sorry for the delay.  I just messaged you.  Let's definitely get together soon!

Hi @Dante G., sorry for the delay in getting back to you.  Had my first kid last week and obviously got a little distracted!

I second (or third, or fourth) the advice you got from @J. Martin and @Arlen Chou.  I was pretty certain I would enjoy living and investing in North Oakland, so my wife and I rented here for a couple years to explore the neighborhoods, understand the nuances between those nuances (or even between blocks within the neighborhoods).  We tried to understand where things were and, more importantly, where they were headed.  

If you're not ready for the type of reconnaissance that J. and Arlen suggest, or moving into a neighborhood, you can still get enough information to decide if you'd want to live there.  I, for one, went to every open house I could, even if I had little to no interest in the building.  I wanted information.  I set up as many one-on-one showings I could, preferably on off hours so you can really get to know the seller's agent.  Coincidentally, that fortuitously lead to my first off-market deal.  Also, go to broker's open houses as well, usually mid-week, if you can swing it.  The hard sell is not on, so you can usually pump people for information, meet the seller's agent personally, and talk to other brokers (who, you might expect, have their own deals and information).  

And if store clerks and mail men still seem a bit of leap right now, you can still pump your friends and friends of friends who live in those areas for their thoughts.  That often gives you a lot to work from.

Sorry if this isn't as detail or helpful as you might like.  But I love connecting with other Oakland investors, so let me know if a call/coffee/beer sounds good. 

Good luck!

Brent

Hi Charlie,

Welcome to BP and the real estate investing community in the Bay.  Those are good questions you ask, and I'll tackle just one of them -- how do new investors get their start?

Like you, I live in the Bay Area (North Oakland) and I wanted to make BRRR work here somehow. I thought it might be too expensive so I started looking around parts of California I was less familiar with -- Stockton, Modesto, Sacramento, etc. And after spinning my wheels for a few weeks, I came to the conclusion that I was better off becoming an real expert in one place that I knew really well and wanted to actually live in. So I got as deep into the Oakland market as I could -- watched it every day, went to all sorts of open houses (including buildings I knew I wasn't interested in). I also studied FHA loans and 203Ks to know what my options would be to NOT put down 20%. And you know what? There are plenty of deals here in the East Bay that will cash flow from Day 1 and provide interesting value-add or forced appreciation opportunities. You just have to be diligent and patient.

Within 3-4 months, we found our first duplex off-market, negotiated a good price, and made an FHA purchase with 3.5% down. Nine months later, we refinanced out of our FHA (and pesky mortgage insurance) and moved on to our next building -- a nearby 4-plex. We also bought that through FHA. All units in both buildings were vacant. And in the meantime, we took out a HELOC on the first duplex so we have a good chunk of change to go after the next building. I also got my real estate license in California (I had one in IL) so I could handle my own transactions, and others if possible.

I don't write this a pointless "success" story.  (And who knows how these investments will go in the future?)  I write this because it's annoying to hear people say that it's impossible to invest in the Bay Area.  You can.  You don't have to go out of state or out of your local market. And you can do it with 3.5% down, and cash flow, and have a pretty good cash-on-cash return.  Will it be as great as other markets?  Maybe not.  Is there a slightly higher barrier to entry?  Sure.  But the Bay Area is a unique place where there will always be demand, and that makes me more comfortable as a landlord and investor.

I'd be happy to grab a coffee or beer and hear more about what you're trying to do. I've found it really fulfilling to invest in the place I want to live and be part of the community for the foreseeable future.  I'd love to help you in any way I can.

Brent

Just sent you a PM.  Would love to connect

Hi, I'm looking for a good, affordable handyman in north Oakland, California.  We just have some odd jobs that include easy electrical (not rewiring the whole building or anything; basically installing lights), drywall, etc.  Any recommendations for good handymen in the Bay Area would be appreciated.   Thanks

Brent

Thanks Carolina.  I'd appreciate if you could shoot me his number. 

Brent

Have an interior paint job at a building we just purchased.  Open to trusted referrals.  Thanks!

Oakland, San Francisco, Bay Area

Hey @Calvin Kwan, thanks I'll reach out to Patrick.  We just bought at 58th and Shattuck -- how about you?

@Robert Marston and @Ryan Scott Isacksen, thanks -- I gave Plumbing Ministry a call and we'll see how it goes.

@Chris Mason, as always, thanks for the advice.