All Forum Posts by: Lindsay Ferlin

Thank you Scott!

Hello, I am in the process of becoming an agent. I am interviewing with a brokerage and they have requested a CV. Since this is my 2nd career, I am wondering how much information about my first career (psychotherapist) should be on my CV? Also wondering if I should put the purchase of my own home on my CV? It was a fixer and we used FHA 203k financing so I have experience managing that project though I was not the agent when I bought my home. Also wondering if I should include some office arbitrage deals on my CV? Thanks for any input!

I would say keep as many original details and charm as you can! Those kinds of things can't be recreated. As someone who has been looking at homes in the Bay Area over the last year, the homes with original details stand out (and sell for more) among the generic flips (grey wood laminate, recessed lighting, white cabinets and subway tile and all beige bathrooms). All of the soul gets sucked out in some of these flips. From what I can tell people really will pay more to have original details both in rentals and sales at least in the Bay Area. Not sure about other areas. 

@Frank Wheeler I also visited a house on Parker in Eastmont. That block seemed nice and quiet and it appeared that most people owned their homes. I talked to a neighbor there and he said people looked out for one another. Another quiet block was 77th Ave in Eastmont. 

Hi @Frank Wheeler, the place I was looking at in Castlemont was on Auseon Ave. It seemed liked a quiet block but I only visited twice in the afternoon. When I went to visit with my partner we noticed a street memorial with candles and such a couple of blocks away. It seemed like someone might have been shot there recently. While our block seemed calm the surrounding blocks seemed more chaotic with houses in poor condition etc. Ultimately my partner didn't feel comfortable with that house. Now we are in escrow on a HUD property in Allendale. Turns out it is a complete fixer (more than just the cosmetic work we anticipated) so have just begun the 203k rehab loan process. We will see how that goes. Where are you looking now?

@Tobey Grey what neighborhood did you end up buying in? I'm currently looking at Castlemont. 

Investment Info:

Office Space commercial investment investment in Berkeley.

Cash invested: $40,000

After the success of my first deal I realized that I could repeat the process in a building that I was not working in. I found an office suite that was being leased for below market value, I added value through rehabbing it, and then I subleased it out at above market rate. Note- the building owner is aware of my activities and I received his permission for all the work I did.

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

The Bay Area is a difficult market. My short term goal was to increase my income so I could increase my savings rate. I needed to find a way to create passive income as I already work full time. My long term goal is to save money to begin investing in real estate.

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

I found this deal on Craig's List. The office suite was renting for below market value because it was very ugly! I saw an opportunity to create a lovely space for therapists to work. There was not a lot of negotiation. I offered to pay the rent they were asking, I made sure it was stated in the lease that I could sublet. I pointed out that was going to add value to the owner's property by rehabbing it for him.

How did you finance this deal?

I used cash. I had some cash on hand, my spouse had some cash on hand, I borrowed some cash from family and we used some credit cards.

How did you add value to the deal?

The office suite was initially 4 offices with a big open space. It had foggy windows you could not see through, ugly damaged drop down ceiling tiles, and florescent lighting. We added a wall to create five offices, we took down the ceiling and drywalled the ceiling, we changed the glass in the windows so you could see out of them, we swapped out of the florescent lighting for lovely dimmable lighting, and we painted the entire suite in lovely colors.

What was the outcome?

We were able to rent out all of the offices for above market rate because the offices were beautiful. We spent 40k on holding costs, attorney fees and the rehab. After we recoup our investment we cash flow $3000 a month on to infinity. We have a long term lease with the right of first refusal. The tenants have signed long term leases. We do not have many costs associated as we do not own the space. When something like the faucet needs repair, the owner does it.

Lessons learned? Challenges?

Not all building owners are tuned in to the market. Some are just lazy and don't care about their property or adding value to their property. I have something to offer in this regard. I also learned that I can add value by creating aesthetically pleasing spaces. Additionally, holding costs were more than I expected them to be, contractors are more expensive than I thought and the work took much longer than I anticipated. Opportunities abound if you are paying attention and being creative.

Investment Info:

Office Space commercial investment investment in Berkeley.

Office Hacking! This is an unusual deal as I do not own the building. I am a psychotherapist with a full time private practice. In the fall of 2018 I was give the opportunity to become the master lease holder on the psychotherapy suite I was already working in. I was able to update the offices and rent them out at a profit. This enabled me to use my office for free while cash-flowing $400 a month.

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

I was initially motivated by the idea of reducing my monthly expenses. Finally after renting my office for about 7 years I was presented with the opportunity to eliminate the cost of renting my office. The timing is interesting as I had just began listing to both of the podcasts Bigger Pockets produces. I think that listening to these podcasts helped me seize the opportunity I was presented with.

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

I was already working in my office when my suite-mate decided to find a different space. This allowed me to take over the lease, update the offices and rent them at a profit. When another office in the building became available I jumped on the opportunity. I leased the space from the landlord, rehabbed it, furnished it and now cash flow $600 a month for that particular office bringing my total cashflow from this building to $1000 a month.

How did you finance this deal?

Cash

How did you add value to the deal?

Cleaning, junk removal, paint

What was the outcome?

I was able to use my current office for free and rent out 3 offices for above market value rates because of my connections to other therapists and because I was offering a nicer product than was available elsewhere.

Lessons learned? Challenges?

Things are possible in the Bay Area if you are creative and persistent.

Investment Info:

Office Space commercial investment investment in Berkeley.

Office Hacking! This is an unusual deal as I do not own the building. I am a psychotherapist with a full time private practice. In the fall of 2018 I was give the opportunity to become the master lease holder on the psychotherapy suite I was already working in. I was able to update the offices and rent them out at a profit. This enabled me to use my office for free while cash-flowing $400 a month. When another office in the building became available I jumped on the opportunity. I leased the space from the landlord, rehabbed it and now cash flow $600 a month on that office bring my total cashflow from this building to $1000 a month.

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

I was initially motivated by the idea of reducing my monthly expenses. Finally after renting my office for about 7 years I was presented with the opportunity to eliminate the cost of renting my office. The timing is interesting as I had just began listing to both of the podcasts Bigger Pockets produces. I think that listening to these podcasts helped me seize the opportunity I was presented with.

How did you add value to the deal?

Cleaning, junk removal, paint

What was the outcome?

I was able to rent out 3 offices for above market value rates because of my connections to other therapists and because I was offering a nicer product than was available elsewhere.