All Forum Posts by: Scott Raley

If your home was in a better area of San Jose I would recommend the 2nd story addition. But based on your location and the projected budget, it seems like alot of risk and effort for not much reward.  You really have to assess if you need the extra square footage or not, especially if you have a growning family. 

If you don't need the extra square footage, I would recommend going for the sloped roof option at 20K. This seems like a reasonable cost and a great way to upgrade your home and set it apart from other homes in your neighborhood. Plus you have greater cost controls on this project. If you  have  ever done a major home addition/remodel  you know there are plenty of surprises and budgets that  blown up, especially if its your own home you plan to live in. 

Good luck !

I suggest you consider teaming  up with a seasoned, successful agent who specializes in real estate opportunites for investors. You can do it on a  per transaction basis and therefore not be married long term  to this agent.  This was a strategy I used when I first got into buying and selling real estate for others. Here are a few advantages to this arrangement in my opionion: shorter learning curve, more likely to close transactions , bringing greater  knowledge and credibility to attract new investors, two heads are usually better than one. If your hard working, enthusiastic and committed, you will have no problem finding a great agent to help guide  and partner with you.

The only downside is you will have to share your  commission. That sum is negotiable but most mentors in this relationship will ask for 50%. You will also be the one bringing in the investors. Make sure you have a clear understanding of how you will work (split commissions) with those investors should they end up doing several transactions. 

Knowledge is power  and investors want power agents. 

I  personally would invest in  the SF Cambrian home  and the duplex in San Jose or Campbell. I would be very strategic in the neighborhoods you invest in.  I  would search for rental property located  west of highway 87 and  be very careful of older, often non conforming property in downtown San Jose. 

Your properties will cash flow better but you will likely give up some appreciation by not investing  in the prime areas of Sunnyvale, Mt. View or Los Gatos. There are some outstanding pockets in Cambrian, especially in the 95124 zip code, that I believe are very fairly valued and have a great upside.  

I have an off market home in a terrific area of  Cambrian that  I'm  getting ready to do a major renovation on.  Plans are approved for a 4 bedroom, 3 bath,  1760 SF home on a 7400 SF lot. 

Shoot me a message if you want more information. I also have a Rental Investment Worksheet I can send  you to help with your analysis.  Good Luck !

Thanks for all the positive suggestions. I'll reach out to some of these companies and see who is the best fit. 

Looking to move funds from a traditional, institutional SEP-IRA account into a self directed SEP-IRA to invest in Real Estate or Deeds of Trust. I'm seeking a firm that offers outstanding service, expertise and one that can guide me through this labyrenth of information. The government and institutions do not make this transitiion easy.

I'm currently invested in RE doing flips  and doing private money financing so I'm looking to more of an active rather than passive investor. 

Any quality referrals  for firms or individuals serving the South Bay Area in Northern California would be appreciated  

I do agree to some extent with your comment Scott Carder. Let me start by stating, I'm a huge believer in personal responsibility. But the financial melt down  began on Wall Street and the halls of Congress. Many of the worst loans; negative amortized, balloon payment loans, etc were presented as viable  loans to people who could not afford them. Many borrowers  were sold on the promise that real estate values would  continue to go up and that they could then refi into  better loans in the not too distant future.  If someone is willing to lend you money to buy a house (the american dream) with poor credit,  little or no money down, and no verification of income,  alot of people will grab at that opportunity.  I call it preditory lending fueled by greed on Wall Street and orchistrated by a government asleep at the wheel who eased lending guidelines in the name of "fair opportunity". Not everyone can afford to buy a house and alot  people were buying houses they had no business buying. 

These poor quality loans proved to be the sunami that  everyone around the world felt the affects of. Roughly 5 trillion dollars of wealth were wiped away. Our National Debt stood at 9 Trillion in 2008 and it now stands at 18 Trillion. The taxpayer and the little guy once again get the shaft , while Wall Street laughs all the way to the bank

Congrads to you Bao on acting on your dream, making a plan and executing on your plan. 

Rob,

I would start with asking yourself a few questions. What are your goals in real estate? What are your talents and gifts and how do you plan to use those to be a successful real estate agent  or investor? What excites you about doing real estate deals and transactions ? Are you looking to buy wholesale and do flips or buy and hold?  Are you looking to help friends and family buy and sell real estate?  

You also might consider doing the "Franklin" method of decision making. Take a blank piece of paper and draw a line down the middle. On the top left put PROS, on the top right of the CONS. Then spend some time writing out what you see as the advantages (Pros) or disadvantages ( Cons) of getting  your real estate licence. Alot of people  on BP have provided some good information for you sift through and generate some ideas and hopefully some goals.  Do this exercise over a period of a week or so. If you write down  15 pros and only 3 cons ......that should tell you something. 

My vote would be to get licenced. If you do one deal a year it's worth the expense of holding a licence. Plus once licenced you then have the option to find and join the office of a good broker/investor, who can mentor you. Yes, as a licenced agent, you have to be very careful around disclosures, reports and making sure you do your due diligence. Yes, you are held to a higher standard in a court of law. But, being an agent can give you a deeper understanding of contracts, how to generate real estate leads and most importantly, in my opinion, finding out about off market deals before they hit the MLS.

Below is a link for information on a  RE meeting that meets once a month in West San Jose ( Harry's  Hofbrau  Restaurant)

http://www.meetup.com/San-Jose-Real-Estate-Network...

Drop in admission is $15 unless your a member. I've found this meet up is  friendly to new or seasoned  investors, presents  relevant  speakers and offers RE market updates and networking opportunities. 

Play the next hand.  Think of this first effort as a lesson and not a failure. 

In my opinion, the NW within the Redmond / Seattle market looks very promising  to invest in the next 5-10  years. 

A very critical questions is how long you  plan to be living in that area. If you plan to be there 3-5 years, I would look to make a purchase. 

I like this area for the following reasons:

Good job market, pacific rim access for new  immigrants and investors funds who like west coast investments, still affordable housing relative to other west coastal markets ( Bay Area, LA, San Diego, Sacramento, Phoenix) The fact  that its  a cool (no pun intended) place to live for millenials make this a huge positive play. This is a long term growth area as people flock to both jobs and quality of life. If you invest in Seattle proper, understand about 75% of the homes were built before 1960 , so be prepared for lots of potential repair issues.