All Forum Posts by: Josh Angeles

Hi all, Does anyone know a good commercial lender in the phoenix,az area? We're looking to purchase 2-3 Assisted living facilities and need a person who knows how to work these specific deals. Thanks for the help

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Hey All, First off this community is FANTASTIC!!!! I've been part of a # start ups, tech meet ups, other forums, and the energy, support, & attitude in this forum is phenomenal. I'd like to pull the trigger in the Phoenix or AZ area, but I'm having a tough time finding deals that fit the sound BP REI mold. My goal is to buy and hold to start building passive income. My criteria and general thoughts (this is flexible and fluid) - 1) 2% rule according to the BP book. It doesn't seem to exist in PHX ( it seems the .75% rule is more realistic) . 2) 100k-400k property value 3) moved from SF- I'm loving the people, the sun and all of the outdoor activities. The lower cost of living is great as well. 3)Sources I've met with so far- multiple wholesalers, conversation with a few BP contacts, local investors, and multiple RE agents. ( a lot of the wholesalers I've spoken with have overly optimistic ARV estimates ( i get it they are selling)) 4) Is Phoenix overpriced? Does anyone have suggestion on other markets for buy and hold? I'd like to make an investment on something nearby. But if conditions aren't right I'd rather not force the issue. I'm totally okay looking elsewhere. I know this topic has been covered multiple times, but I'd love to hear some recent thoughts on PHX area. Thanks All!!

@Amit M.I freaking love this community. Amit thanks for decisive advice and conviction.  It's rare to have a forum where people genuinely want to help each case other.  

Amit, thank you so much for the sound advice.  I hope you understand you input helped solidify our decision.  Huge help. I hope someday I'm in a position to give meaningful input (I'm in expert at SAAS sales if anyone wants help in that arena!!) 

@Account Closedgreat graph on rentals. Our propert is in one of the highest rental rate districts in SF. Mortgage is about 3300 + 400 HOA and we are getting 4375. Looks like a hold and see what happens situation for now.

@David Faulkner thanks for the great feedback.  We have lived in it as a married couple for 2 years, so we may take advantage of the tax savings on the sale. 

I was thinking the same thing in regards to a correction. It should effect AZ more than SF (just an opinion).  It might be best to sell and be liquid until a correction or killer deals uncover 

@Matt R. thanks for the graph. If the average holds true, it looks like I have until 2017 (at the earliest)to make a decision before any type of correction. 

I'm new to the BP forum and and I must say.... this is a damn good community.  That said I'd love to hear people thoughts on a transaction I'm having a hard time wrapping my head around.   

Situation: My wife and I purchased a condo in San Francisco (Dogpatch 94107), in 2012. We bought the condo for $519k. Last year we refinanced and pulled our initial down payment. The exact same unit in our building just sold for $930k. There is a real emphasis on development in this area. New hospitals, new restaurants, a few piers are being converted to shopping centers, the Golden State Warriors are planning to move in less than 2 miles away. The area is starting to be the trendy hip area of SF. We are currently renting it out and it covers the mortgage and HOA with a marginal profit. (The condo almost has no/low maintenance)

Some thoughts:

1) Is San Francisco RE unique.  Can valuations keep rising and if there is a correction, will it be minimal in SF?  If there is a correction will rents remain high (the rental market is very competitive). We have friends that have a combined income of $350k and credit score of over 730 and they had a really hard time finding a good rental.  

2) Will the new developments in my neighborhood significantly increase the value of our property over the next 2 years? (Look up Dogpatch SF and you'll know what I mean)  I have a feeling it will be like the Meat Packing district in NYC in the future. 

3) Is now a good time to get into REI in Arizona?

Here are the options we considered:

1) Sell the condo and lock in gains, and wait for a market correction ( it sounds like most guest on the BP podcasts are liquidating or just holding at the current time)

2) Do nothing, cross our fingers and ride the wave. Hoping this condo keeps flying high!

3) Look for REI opportunities and if we find any amazing deals we pull money from our mortgage.

Thanks for any feedback suggestions and connections! Cheers!