All Forum Posts by: Zap Martin

Hello and welcome @RM Smith!

San Diego is beautiful! I've been here since college and then worked for the city of San Diego until I was able to leave my job to do real estate investing full time! There are a handful of areas that I think are great for buy and hold in San Diego where equity should rise. I hesitate to "predict" because anything can happen at anytime. But some things to keep in mind are:

(1) Buy right - no matter if you're in Logan Heights or Rancho Santa Fe, you want to make sure you are purchasing a deal at a discount if the purchase if for an investment property. 

(2) Chat with an appraiser - these guys (and girls) are perhaps the most under utilized people in the area. All they do ALL DAY is analyze property values. I work with a handful if you want some names and numbers. 

(3) Research - Taking a look at home values in a particular neighborhood over time will give a "big picture" perspective. Also, it's important to note the difference between *appreciation* and *inflation*. Without turning into an Econ Professor, make sure you are tracking both. 

(4) Have an exit plan - If you know how you want to exit the deal, that will help you. For example, I am working a subject-to purchase in San Carlos that started out as an offer on a flip. However, after realizing the seller didn't need all of the cash for the sale, I was able to change my plan and we're working out the details of this deal right now. A wholesale vs. flip vs. rental vs. value-add vs. lease-option sandwich... all of these are potential strategies to use. 

Best of luck and let me know if I can help out with anything here in San Diego!

Zap 

Hello @Alexander Holmes !!

I like your story. I moved to San Diego for school (UCSD), graduated and worked for the city of San Diego. Like you, I wanted to start real estate investing. And while working for the city, I did start investing... in 2007. My first property (I partnered with a friend... who later became my wife - so be careful who you partner on deals with!) was in Mission Valley. We got it for 420K (appraised at 470K). However, we didn't know the market was going down. 

Oooops. 

Luckily my Economics Degree and shadow experience with other investors help me buy it right, and we didn't loose any money when we sold it (I was cash flowing through rent WHILE we rehabbed it #doubledip).

Fast forward a few years, I bought a few more deals (mostly out of state) that were minor fix-n-rents. They all cash-flowed well. Fast forward to 2015, my wife and I were able to "retire" off of business/passive real estate income.  We decided to move to south America for a year (Paraguay) so she could live her dream of helping kids with special needs in Latin American countries. It was AWESOME. (One or both of us have gone back 1 to 2 times a year ever since). She's since added Peru and China to the places we travel to help. (Google "Zap and Linda Martin" for more of the story). 

We returned to the USA (San Diego) in mid 2016 and lived the retired lifestyle (wake up at 9am, cook & eat breakfast, check Facebook/Instagram/Snapchat for 2 hours, take a nap, wake up at 3pm, work out, take a shower, eat dinner, hang with friends, repeat). I noticed I was doing the same thing whether I was in Rio de Janeiro, Asuncion, Lima, Nashville, or San Diego... and being in my 30s... that got boring quick. 

So I got my real estate license to do more investing local. My goals is to (1) help newlywed couples with finances (2) help more kids with autism/special needs and (3) retire my parents... 

Long(er) story short, I'd love to chat about your deals and learn from you, while giving you my 2 cents. 

Zap

@Chris Faye

Hey Chris, can you elaborate? 

Hey @Jason L.

Great problem you have (300K and where to put it)! 

I treat my money like employees and put them to work. Whether near (bay area) or far (Jacksonville) as long as your money has a plan to duplicate/replicate, it's money well spent. 

I own (or have owned) investment properties in Southern California (San Diego), Nevada (Las Vegas), Missouri (Kansas City), Jackson (Mississippi)... and I bought in each area at a different time based on market flow/conditions; but each property I own (whether condo, SFR, duplex, etc.) is working. I've had investments in state and out of state that didn't perform. I "fired" them... At the end of the day, the money that works the hardest gets to keep it's job.

If your money won't work hard for you in San Fran, then keep looking for a "job" for it in other places until it can work hard for you.

My thoughts :) 

Feel free to reach out if you want more details/ideas on how I search for locations.

Zap

@Jordan Sunshine @Alan Kahanu

Hey Jordan and Alan!

I will be looking at some properties in Hawaii (Maui) and would love to pick your brain about Maui... either what you know or perhaps people you've worked with?

Zap

@Account Closed

Awesome that you and your husband are looking to take things to a higher level. A couple thoughts

(1) Regarding Comps - you can use Zillow / Redfin / Trulia / Realtor.com / etc. for comps or you can get your Real Estate license and use the MLS. However - I've found that how you comp is more important than what you use to comp. Many people draw 1/2 mile circle around their property and look for listed and sold properties. What we should be looking for is similarities in: square footage, amenities, view, age of house, rehab styles (all rehabs are not equal), alley vs no alley, through street vs cul-de-sac, corner lot or no, east facing vs. west facing, and 15 or other criteria that affect value. Most people only consider proximity - which is not enough to get solid ARV.

(2) Finding Realtors - the best Realtors for investors are Realtors that invest themselves. 

Some questions you want to ask are:

- Describe the last deal you did (you will learn a lot about what they know by having them talk about what they do)

- Can you give me the name of a few contractors you've worked with

- Can you give me the name of some hard money lenders you've worked with

- Explain how you arrive an your ARV?

I know a handful in the greater Denver area and give you a few names.  Drill them with these questions and you'll notice the difference between investors that have a real estate license vs. Realtors that say they are investors. 

Zap

Hey @Dan Tsunekawa

Looks like everyone has given real good advice. 

I am an investor that lives in California (San Diego) and has had and currently has investments out of state (Nevada, Missouri, Mississippi). I use the triple check method when dealing with out of state purchases. 1 - Check with property management companies and ask them for Investor friendly Realtors. 2 - Check with Realtors and ask for property management companies. 3 - Call Contractors/Inspectors and ask which Realtors & Property Management Companies work with investors.

What I've found is that after I spoke with multiple Realtors, Property Managers and Contractors, I would start hearing common names and automatically narrow down my search for who knew the area and had experience working with investors. 

By the way, I work with a team of investors down here in San Diego that may be interested in the property you are selling? I can also introduce you to a couple investors in Houston as well. 

Feel free inbox me if you have any questions!

Hello @Jennifer Lamb!

What a coincidence! I am an investor, also licensed agent in CA working in San Diego; AND.... doing deals in Kansas City, MO! I would love to chat about areas, contacts you have out there, contractors, etc. in Missouri. I just bought a duplex in Independence, MO and looking for other similar stuff. 

I also do deals in San Diego, so we can talk about San Diego too!

I look forward to connecting with you!

Zap Martin

Hey @Damien Dear,

Delving into the world of real estate investing (actually DOING it) is much more difficult than reading about it, watching it on TV, etc... 

Hopefully someone in LA can let you take a look on some of their projects and let you ask questions and "shadow" them for a day or so?

I'm not sure how flexible you are with traveling, but I have a deal going now in San Diego (fix and flip) I could invite you to tour/walk through... I also have a pending one in Las Vegas (it's in escrow) and another active one in Independence Missouri (that's kind of far though). And I don't actively look in the City of Los Angeles, but often come across things in Orange County that if I take on, I could let you walk through and ask questions as well. 

I might charge you an In-N-Out burger, but that's it :)

Inbox me if you're interested.

Zap Martin

@Andrew Harker

Yes... although I would call myself a full-time investor that is also licensed. I use my license to work with investors to find them deals. It works out nice, because 95% of real estate agents are not real estate investors and don't understand how to work with an investor (wholesales, double-closes, rehab cost analysis, familiarity with Case-Shiller index, etc...)