All Forum Posts by: Jake Leicht

Hi @Mark Florentino, I might be able to help. Do you have a buyer for the house already? I'll PM you my information. Give me a call or email, please.

Hey @Ben Curry, just shot you a note and a colleague request. I may be able to help you out. I have a few in Albuquerque right now.

Hey @Wes Blackwell, good to meet you sir. I've been buying 3-5 SFR homes every month in the Central Valley, heavily in Stockton and Modesto for the last three or so years. I'm open to expanding out to the Sacramento market so feel free to reach out if you ever want to talk shop or need an experienced cash buyer. I've coached a few RE students in Sacramento and Elk Grove and, although competitive, there are sure some good deals waiting to be found in that area.

Hey Jo-Ann, I am assuming the property was in close proximity to the University of the Pacific? Do you mind me asking whether it was East or West of the University?

I actually do quite a bit of work in that area. You're right - there were and still are a high number of REOs around there. The banks seem to not make many of them available at a given time (which I understand the reasoning behind) but when they do, there is always a pretty good bidding war on them as that area is relatively safe, holds it's value well, and has a high market of first-time homebuyers that are qualified for and looking in that area. I would say that the property that you closed on it a good investment, for sure. Both east and west of the University are appreciating like crazy right now.

Hey there BP community! Where are all of my fellow Central Valley investors that are capitalizing on the Stockton (California) market? I've been doing a lot of business there (Stockton is my hometown) with fix-and-flips and rentals lately and I'd love to synch up with others, regardless of it you've been in the business for a while, if you're a newbie, or even if you are considering dipping your toe in the market and have questions or need recommendations.  

It's been quite some time since the last time I posted on the forums and after taking a general hiatus from using social media for real estate purposes, I feel like now is a good time to return to my roots. I first started in real estate in late 2011 really leveraged social media at that point to create some great business relationships that blossomed into awesome friendships an ended up being very profitable. While the whole starting a family thing took my attention away from my online presence over these past couple of years, I can't ever forget the role that BP and other sites played in my foundation. I can proudly say that I've made good money by partnering with others that I met through the BP community, some that I have thriving business relationships with to this day. Pretty cool!

I have a ton of projects going on in Stockton right now and I have some questions for you experienced "flippers" as business shows no signs of slowing down in the short-term future. And by a ton, I mean about 15+ at any given time. And yes, that is "a ton" to me (don't judge my numbers now, ya hear?!?!). The city has steadily risen to being recognized as one of the Top 15 hottest markets for real estate in the country and I'm not one to pass up picking low hanging fruit. At the same time though, every time in the past that I've improved the ladder that I climb to pick those fruit, the sweeter the fruit tastes once harvested. Make sense? Good. I need some help and direction.

When I purchase and flip homes, I always leverage private lenders and/or hard money to put a 1st and 2nd trust deed on a property. The whole "no money out of pocket" thing is real and can be done. I've made and unfortunately lost money in other investments so having the confidence that I can flip a house to make cash back in any city out there and with minimal hit to my pockets is a huge asset. But with this approach, would it be wise to adjust my the way that I structure funding in order to get my costs down a bit and be as efficient as possible with business? It's a juggle looking at my operations as a business but looking at each property's funding as an individual standalone entity. I buy in clusters so the bigger picture is important to me. Does anyone out there have experience with this type of turning point? Would it make sense to refinance my projects out with a single lender that would approach as a business rather than 15 separate projects? Does this type of lender exist? And is this even a normal question to be asking? Credit is great, business is a good standing S Corp with good financials, results are proven. Is there another level that I don't know about here?

BP, your assistance in looking at this in a more creative way would be greatly appreciated!

Hi @L'aura Bradford, I find deals in Stockton a number of ways. Often times, one of the agents that I work with either sends me over a deal before it hits market or the moment it hits the market. Other times, I get leads from some of the title companies. It just depends on how involved you are with the local professionals. I do have a couple of referrals that I can send your way to help you find the ideal property for your family. Please shoot me an email and I will help out as best as I can.

Hi @Delores Becker, I'm a Stockton investor and haven't been on this site for a while. How has your 2015 gone so far in the city? I've done quite a bit this year and I'm always open to purchasing from wholesalers. Let us know how you're doing and please, by all means, shoot me an email sometime!

Hey guys, thanks for posting about this topic. I have actually been personally purchasing hundreds of SFR properties nationwide from hedge funds and servicers on a monthly basis over the past 9 months or so.

Your assessment of the BS radar going off when you hear someone talk about bulk trades is true, however, that is due to the amount of brokers out there trying to make a quick buck by either remarketing product "posing" as the direct seller or getting a buyer to sign a fee agreement up front and then trying to go up the daisy chain to locate the direct seller. We call these folks "joker brokers" and I definitely get fed up with them as they make the industry very convoluted.

On the other hand, the bulk REO/Note business can also be quite profitable if the proper relationships are secured with direct sellers. My team has learned the hard way that screening, screening, and more screening is absolutely necessary before making the decision whether to enter a business relationship with a supposed seller. If one can get through all of the broker nonsense and get direct to the principal buyers, there is low competition, high discounts, and consistent product coming through the doors.

I have personally made a lot more money in the bulk buying business than in the open market buying one-off properties and have learned quite a bit in the process.

Happy investing!

Hey @Mohit Madaan, I actually grew up in Stockton and although I live in Southern California now, I do quite a bit of investing there. I've done about 20 flips there since April 2012. I agree with Kyle, the city does have a pretty bad name with out of towners, but that has always made the competition a lot lower for us that know the area. With that being said, there are A LOT of folks who have lost money in Stockton because they buy in the right area but on the wrong block. Literally one block could adjust an ARV or a rent rate pretty drastically if it is a gang neighborhood or a rental block.

When I flip, I prefer to stay north of Harding Way and in Central Stockton, I try to stay West of El Dorado St. I have done most of my flips in Central and North Stockton.

There have been a lot of hedge funds and international funds buying up property in Stockton lately and their purchase criteria is simply a very passive cap rate. These funds are bidding whatever it takes to get their 5% cap and in many instances, it has meant that they will bid turn-key purchase prices for properties that are HEAVILY distressed. Because of some of these numbers, I haven't bought much in the city since June of last year.

I'd be glad to answer any questions about location and contractors in the city and help however I can. Feel free to colleague request me or email me directly.

Happy Investing Everyone!

Jake Leicht

[email protected]

@Kyle J., its been a while my friend, I hope that all is well. I too want to know what ended up going on with this property. Is/was it located int he country club area over by UOP?