All Forum Posts by: Justin Louie

@Ryan Landis

Thanks for reaching out Ryan! I think that after some unsuccessful talks with some agents and real estate brokers, I'm starting to get this same picture. I guess I will need to continue to figure out my best first step, whatever that may be.

@Russell Brazil

I appreciate your response Russell. I have been starting to feel the same way. I don't want to give up trying to find a great start, but I'm also realizing that maybe my criteria is too unrealistic. It sounds like you think it is better to give up on those goals and just get in the game?

@Leslie Pappas

Thank you Leslie! I am not YET an accredited investor so I know I cannot participate in the large syndication deals (as far as putting my money in). I have been working with a local investor on his syndicated deals. Mostly, I'm just trying to absorb as much as i can from that process. I will visit your website and see what's there. 

@Michael Delpier

Thanks for responding! I agree wholeheartedly and my last search over the past 1.5 years too have not really shown me anything worthwhile. It's unfortunate that when I began to get interested in real estate investing, the market seems too hot. I don't want to use it as an excuse, but I'm not sure what else I can do in the meantime. If you're looking out this way in the future, feel free to reach out to me. I'd be happy to be some boots on the ground for you. 

@Fred Weiller

I have just begun my real estate investing career. I suppose you can't even define me as one as I don't own any property. My ideal scenario is to get a small multifamily with FHA or 203k and house hack it. I have been talking with several agents and mortgage brokers trying to see what I can do here. I'm focused mostly in this area because it is where I currently live with my parents, it is where I've grown up and where both my fiance and I currently work. I know cash flow here now is tough and prices are pretty ridiculous, but since I will need a primary residence and I would like to start investing. I figure a house hack is the way to go. I think in the future, I would definitely look at the overall national market trends and find markets that can cash flow much better. However, for the time being, I feel my focus needs to be here.

I have a couple of other threads aimed at getting other responses on what else I can do to get started. Perhaps we could meet one of these days and maybe work together in the future.

@Anthony Addessi

Thanks for responding Anthony! It's good to meet you. I have grown up in this area and I'm looking to make my first investment/primary residence purchase. Ideally a small multi-family that could use some TLC. Specifically, I have been focusing my efforts around the South San Francisco area where I am based for work.  I looked at RWC for a little while, but I think I missed out on the

What kind of investing are you involved with? B and H? Flipping? Syndication? and if you don't mind me asking, how are you finding your deals? I haven't outreached to the community yet, but based on the MLS and the recent sales, I fear I'm in a tough spot to get started. I've also been doing some driving for dollars and have a few properties that are interesting, but again, I haven't reached out to the owners yet.

I feel that I am not the only one in this cycle and I would like to hear your thoughts on the matter:

Goal: I would like to make my first purchase that can be both a primary residence and investment (ideally househacking a small multifamily property). I know there are options such as out of area investing or syndication, but I need a place to live and would rather not waste my money on rent.

Barriers: 
- Low down payment for my target area means seeking FHA or 203k financing
- Other low down payment products are starting to flood the market, leading me to believe that banks have money to lend and people want to buy a house, (lucky me!)
- Large student loan debt makes qualifying for financing harder due to DTI ratios.

Conundrum:

If I am seeking a property for personal residence and investment, I assume most private lenders wouldn't be as happy about less money coming in (since I'm living there), and wouldn't want to loan.

If I want to pursue more conventional financing, I would need to find a property that doesn't require much rehab, which means lower chance to build a lot of equity.

If I find a property with a chance to build in a lot of equity, the property would likely not qualify for conventional financing leaving me with the need for private money or hard money to acquire it.

Hard money would likely be way to expensive for a house-hacking venture. I would feel bad about taking private money without any experience under my belt. 

This means I would need to find either an absolute STEAL of a deal in a currently very hot market, which I cannot seem to find on the MLS or real estate shouldn't be my main concern now.

Solution: Unknown

I know I can continue to work and improve my financial baseline and EVENTUALLY, this conundrum will work itself out. However, what can I do NOW to get in the game? What do I need to change first? 

@Allen Fletcher

Thank you, and I absolutely agree. Persistence is key and I want to say that I have it, but I fear if I don't find a glimmer of hope, persistence is going to be a lot harder to keep. I have been looking through those sites to see what is available and that is where most of my information comes from. Hopefully something will come up soon and I will be able to take advantage of the opportunity.

I couldn't find a specific forum for the greater peninsula area. I feel that many of the local investors are investing mostly out of state or at a distance. With only 1 or 2 so far that I've met that invest here in the peninsula locally (not necessarily San Francisco).

I was hoping to see if anyone on here is actively investing in San Mateo County. I would love to talk to and pick your brain (or at the very least, just see if anyone on BP will see this thread and actively invests in San Mateo County).

Thanks!

Hi all,

First, just a little background. If you want to see my question, skip to the end of this post. 

I have been continuing to learn thanks to BP: the podcasts are amazing and the content is so insightful.

Lately, I have had a bit more time to really sift through some personal issues and realized really that my real estate hopes and dreams have been nothing more than that...hopes and dreams. I am working to make a commitment to this thing and I know I'm moving in the right direction as slow as it may be.

I have taken a bit more action and have reached out to many agents and mortgage brokers in my area. Some of of previous posts explained my interests and plans, and I had decided that trying to house-hack a small multi-family to be my ideal first step to make my first purchase both a primary residence and investment property. A few things: In my area, the market is extremely hot and I'm seeing multiple bids on properties with closing way above asking price (with many all cash offers and few contingencies). I haven't found anything yet that seems reasonable for my situation. FHA or 203k would be wonderful given I find the right property.

My question: Most of the agents/mortgage brokers in my area that I've spoken with almost write me off because of my situation. I've tried to have them level with me and I think the gist of it is that because I am going to need an FHA or 203k, they don't want to work with me because the hopes of getting that offer accepted are little to none. Why would a seller take the buyer who doesn't want to give up contingencies and has to get 95%+ financing when they can turn around and accept an all cash offer? What would be the best next action? Continue to network until I find someone to work with me? Am I being too naive in the current market conditions? Maybe it's best to sit on the sidelines and wait to get in?

@Account Closed I know I'm a newbie. So thank you, and I appreciate the comment. It is a tough road ahead and the more I learn, the tougher the road seems. I'd love to hear more about what you're doing and how you're doing it. I think I recall you mentioning that you're part of a San Jose Meetup. I've been trying to make it out to one of them and I hope that I'll get to talk to you one of these days. 

Also, you say that newbies have to get in line behind the veterans and put in our time. I get it. I agree with it. I'm all for it. As someone who went though the newbie phase, what did you do to graduate? I'm willing to put in the time, but I want to try to and use that time as efficiently and effectively as possible.

I know this post will probably not help much, but I'm feeling the same way @Jonny C.. I'd like to employ some of the strategies in @Brandon Turner's book but the bay area is a tough market to seemingly find things that can fit those strategies. Or maybe I'm just too much of a newbie to see it all.

If at all, here's to moral support and to some luck and hard work to yield some good investments for all of us in the bay area.

@Account Closed I'm also considering things much further away from the bay right now. Just started to do a little more research on areas that may fit withing a 2 hour driving (ideally not that far). Maybe it is just that time that we have to do what we have to to find something good.