All Forum Posts by: Tim McGarvey

A few years ago, I co-signed on a mortgage for a family member when they refinanced their property (income was not high enough to qualify on their own). During this process, I was placed on the property deed. Now, the property has appreciated significantly, and their income is now high enough to qualify on their own. They plan on re-financing again and removing me from the mortgage. The family member has also recently married so they planned on replacing me on the deed with the new spouse. However, we want to make sure this is also the correct overall strategy from a tax perspective and that the property will not be re-assessed during this process.

We plan on working with a local CPA / attorney on this strategy but want to get some general feedback on: Is there any risk of property tax re-assessment while going through this process? Doing the refi and the title transfer at the same time seems like most logical, is there any drawback to handling this way versus doing them individually? Any other factors that should be considered during this process? (Property is in Alameda County, California)

I recently closed on a 4-unit multi-family complex in Oakland, CA. After about 12 months of studying and another 6 months of placing offers (I was out-bid on about 20 places), the stars finally aligned and I was able to complete the deal. I'll be "house-hacking" the property and making various improvements to the unit I'll be occupying as well as the building facades, and backyard. Closing my first deal in the fiercely competitive Bay Area seemed impossible at times, but persistence paid off! Already looking for the next project ;). 

Thanks @Joshua Dorkin and @Brandon Turner for all of the free, brilliant content in this community. It has truly changed my life and put me on the road to financial independence. 

Private message me for details about the deal if you're interested. I'd love to connect and partner with other investors in the area doing the same thing.

Direct Messaged you @Jason Hsiao!

Hello,

I wanted to introduce myself to the SF group here. I'll be moving to San Francisco in a few weeks from the South Bay and am looking to get my foot in the door with some of the BP members up here.

I work as a Project Manager for a general contractor so I have experience managing project budgets, schedules, and on-site contractors. I'm looking for a partner in SF to work with (and learn this market from) on some deals. Let's meet up for coffee or lunch and see how we can help each other out!

Thanks,

Tim

@Account Closed I'm interested in investing/living in Oakland but based on my research (similar to what you describe above), it seems we are at or near the top of an appreciation cycle. How would you recommenced a new investor to get active in a climate like this? Be patient and sit on the sidelines for a while? Out of area/state until the dust settles in the Bay Area?

@Ori Skloot Newbie question here. What are the benefits to raising private money to make the initial purchase vs using conventional financing? I guess why wouldn't you have used the same conventional mortgage you refied into to make the initial purchase? I'm assuming that having the full purchase about in cash enabled you to do this deal.

I just completed running a list of addresses (found driving for dollars) through Santa Clara County assessor's office system to find information about the owners. Quite a few (maybe 15%) of the owner's names say "Trustee" next to them. What exactly does this mean? That the home was foreclosed on and the Trustee took ownership? Is it worth my life to market to these houses? Do the trustee's have authority to make any decisions about the home?

Lot's of questions, any advice would be much appreciated. 

Dylan Grabowski I'm facing the same dilemma right now in the South Bay. Looking for a duplex for my first purchase but having trouble finding something that would even come close to cash flowing. The most frustrating part is that I would be able to afford multiple investment properties in other markets but am barely able to get started here on the lowest end properties out there. I'm starting to put together some campaigns to find FSBO and off market deals in my area. Wish I could be of more help, but just know you're not alone!

@Tyler Turpin, I have the same question as @Rob Tossberg. Did anyone check up on your residency or how did you validate that you did or did not live in the property after 6 months? Any sort of fine or spike in payments as penalty for leaving early?

*DISCLAIMER - long post ahead* (bear with me and I hope I'll make it worth the whole 3 minute it takes you to read)

Let me start with a quick story. Last August, I took a 3-week trip to Europe (Copenhagen, Budapest, Athens, Santorini, and Belgrade to be specific) with a group of close friends. It was undoubtedly one of the greatest experiences of my life and something I know I will remember for the rest of my life. The entire 13-hour plane ride back to San Francisco I had burning question in my mind; how to I create a lifestyle where I have the freedom to take a trip like this whenever I want to.

As soon as I arrived home I began to heavily research how to get started in different types of investing and creating passive income streams. I stumbled upon Bigger Pockets. I had been interested in real estate since college but had never taken any steps forward to get my investing career started. After spending a few hours on the site, there became no doubt in my mind that real estate would be the tool I use to achieve my financial freedom. Boom, time to get started.

Which leads me to my problem. The Bay Area is a very tough place to get started.

In the majority of markets in the United States I would be able to make my first purchase tomorrow and dive right in. I'm currently in the process of building capital for a down payment on a multi-family unit in the Bay Area (currently living in San Jose but move around semi-frequently for work). Over the last 6 months I have read dozens of real estate books, listened to 200+ podcasts, scoured for deals online, and met with handfuls of local agents. I don't want to say my learning has plateaued, but there is only so much you can learn without actually having done deals. I want to accelerate my learning and preparation by leveraging the knowledge of someone who is successful at real estate investing in the Bay Area while I prepare to purchase my first deal(s).

Here's why I would be an asset to your business:

I have a 4-year degree in Construction Management with minor in property development from Cal Poly, San Luis Obispo. I graduated school with 30k+ of student debt which I have paid off in less than 3 years. I work as a project manager for a large general contractor and have quickly accelerated to be one of the youngest in my position at the company. I consistently and eagerly take on new challenges. Nothing has ever been handed to me and I have worked hard to earn the success I have created for myself. If you know me at all, you would understand that I take care of my business of the mindset, "don't tell me what you can do, show me what you can do". (Obviously you have not met me so this is a bit of Catch 22 and extremely strange for me to be talking about myself at such lengths, but without having met you, this is the only way for me to capture your attention).

What I'm looking for:

-An experienced successful Bay Area real estate investor to shadow

-To trade hard work for your expertise and experience

What I can't offer:

-Experience purchasing properties

-Large amounts of capital

What I can offer:

- Sweat equity - (driving for dollars, phone calls, deal research/analysis, etc)

- The ability to solve complex problems and get sh*t done - my job depends on it

- Attention to detail - I'm meticulous

- Experience managing construction budgets upwards of $100m

- Field experience managing general/sub-contractors

- Creating and executing master and micro-schedules

- Energy, enthusiasm, and the hunger to become great

- Anything else you need may need - let's be creative and discuss

If you made it to this part, congratulations and thank you for listening to me. I'd love to meet up for a coffee and talk about how we may be able to help each other. Please private message me and we can coordinate from there.

Tim McGarvey