All Forum Posts by: Joe Wortham

Great post! I’d agree with both prior replies. You’ve already taken the right steps. You took action. I would also agree there is likely more to gain from long term appreciation than rental cash flow, depending on what you paid for the property vs market value of course. However, if there’s room for improving the duplex like adding more bedrooms or a third unit then that may be the ticket to increasing the cash flow. 

Best of luck! 

@Murphy Quinn

Hey there! Congrats on picking an area to invest in. I too live in the South Bay Area. I'm a firefighter and my wife and I are realtors. What's your investment goal or strategy going to be? Flip, BRRRR, SFH, Multi, Buy and hold? This would be an ideal thought to start with to narrow your search even more. Salinas and Watsonville areas are probably some of the lowest price point homes in the area along with Hollister and Los Banos so that could be beneficial. As a pro member I'm happy to share results if you want to run numbers on something you find.

Good luck!

@Henry Clark

I’d love to mention it to any of our contacts going out of state. I’ll look up the location from your message.

As far as people leaving California to go elsewhere, I believe the numbers of individuals in 2020-2021 were higher for those that are leaving. However, the RATIO of those that are leaving to those that are coming in from out of state is the same as past.

@Henry Clark

Thank you for your in depth response. That was gold. Everything you said makes perfect sense. I definitely have some homework to do. I’m really thankful for your time spent on this discussion.

If I can repay you or pay it forward in any way please just let me know.

Good morning BP,

I am looking for some advice or direction on how to structure a deal. I want to buy and develop a small commercial lot. The property has been listed for some time now. After a conversation with the sellers agent I believe there is interest to do a joint venture.

My plan is to use SBA 504 loan for the real estate purchase and development. However, the lender does require approximately 30% down. I believe I can get the seller to finance/ seller carry the 30%.

If I can achieve this 30% are there any suggestions on how to structure the next phase moving forward?

Much appreciated, thank you!

Hey BP,

I’m looking for advice.

I have a neighbor who would like to list his vacant property next door. I am wondering if it would be a good idea to buy it myself to preserve views and possibly cash flow from RV parking or rental or just let it go?

I’m in the Lakeway, Tx area.

Thanks for reading.

I’ve lived in Gilroy for many years. It is definitely growing and values are climbing steadily as affordability becomes more scarce. Morgan hill as well although it remains slightly more expensive as it is closer to San Jose and jobs by a fraction.  

I’d consider a little further outside of the Bay Area or teaming up with other investors to conquer your first deal. 

Hey there Bay Area BP. I'm looking for VA lending for a commercial property. Looking to start and run a new business on the property. Would a VA SBA 504 loan work for this type of deal? Are there any local lenders out here with a product that fits this deal.

Thanks in advance!

Investment Info:

Single-family residence fix & flip investment in Gilroy.

Purchase price: $505,000

Cash invested: $100,000

Sale price: $700,000

This is a almost 100 year old property that is zoned in a transitional district. That means it can be SFR, R2, Mixed use or commercial. This was almost 1100 square foot 2 room office space with no kitchen and half bath without a shower. For the sake of the easiest rehab lending we chose to go the SFR route. 6 months later it is a 3 bed 2 bath with full kitchen. We plan to later add another dwelling in the rear of the property. Thanks BP for the education and information!

What made you interested in investing in this type of deal?

Price and opportunity

How did you find this deal and how did you negotiate it?

Found this deal on the MLS

How did you finance this deal?

Financed through a renovation loan.

How did you add value to the deal?

My wife and I are a real estate team so our commission went into the initial investment into the deal.

What was the outcome?

Completed renovation and higher value.

Lessons learned? Challenges?

Staying on budget was a challenge but we did it.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I myself and my wife are a real estate team in the South Bay Area. Joe and Tari Wortham at the Realty Society in gilroy.

Investment Info:

Single-family residence fix & flip investment in Gilroy.

Purchase price: $505,000
Cash invested: $100,000
Sale price: $700,000

This is a almost 100 year old property that is zoned in a transitional district. That means it can be SFR, R2, Mixed use or commercial. This was almost 1100 square foot 2 room office space with no kitchen and half bath without a shower. For the sake of the easiest rehab lending we chose to go the SFR route. 6 months later it is a 3 bed 2 bath with full kitchen. We plan to later add another dwelling in the rear of the property. We considered fix and flip but want to hold on to this one as it is in a downtown setting and we see future value in the area. We will move into it so I'm calling it a BRRRR. Thanks BP for the education and information!

What made you interested in investing in this type of deal?

Price and opportunity

How did you find this deal and how did you negotiate it?

Found this deal on the MLS

How did you finance this deal?

Financed through a renovation loan.

How did you add value to the deal?

My wife and I are a real estate team so our commission went into the initial investment into the deal.

What was the outcome?

Completed renovation and higher value.

Lessons learned? Challenges?

Staying on budget was a challenge but we did it.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I myself and my wife are a real estate team in the South Bay Area. Joe and Tari Wortham at the Realty Society in gilroy.