How the Coronavirus will affect Bay Area Housing Market

I live here unfortunately and not willing to do RE business remotely.

.

Close down RE business and put into S&P. Retire to somewhere cheap. Depends on your lifestyle, Mediterranean, New Zealand, Singapore, Bali-Indonesia, …

1 Like

I have young kids in school. 10 more years to go before I can think about moving away.

2 Likes

What about your $30m in apartments generating $1-2m
in revenue. Hire a PM and live anywhere?
“I you are smart, you can cash flow and make money in Bay Area in RE. I invest in large multi family properties. The ones I bought in 2014 etc. are of course very profitable but even the ones I bought in 2020 are great. I bought around 20M worth of properties in 2020; I put 30% down and 2-2.5% mortgage. I put in another 2.5M on extensive renovations. Total rents when I bought was about 90K per month. Now the rents are sitting at 145K per month, almost 45% of it is pure profit (tax free). Based on my analysis the value of the 22.5M properties are now easily 30-35M, so I can do cash out refinance when rates come back down. So both solid cash flow and solid appreciation, if you are smart.”

Smart or BS… which is it? Just sell …get maybe $20m after tax and live anywhere in the world. now that’s smart. Personally I chose Tahoe. But I can live anywhere. You have to choose somewhere. Don’t need to settle if you don’t like the BA. I have one friend that just travels . Has three homes in Europe but travels constantly. Another has a house in the East Bay but prefers to travel all over the world in the family sailboat. The goal is financial independence. Once achieved the options are endless. I am done with traveling. Been their done that.

People in the BA are very lucky to have affordable options nearby. And out of state. Like the Nevada side of Tahoe. Gold Country. Sacramento.
Very happy up here.

One kid in high already and not willing to move. Plus PA has good schools and good diversity and wife is intent on staying.
I just don’t understand people who use PM and treat RE as passive. They will be better off investing in an index fund. To make real big bucks in RE you have to put in some sweat and Bay Area so far has been good to me. I have few projects in pipeline so do not want to move yet. But future looks bleak for new entrants and for those who do RE passively.

Another plus is a good lifestyle coaster tech job in Bay Area which pays mid 6 figures for very little work and hassle (<10 hrs a week)

3 Likes

This is just general not specific advice…

Just relax and enjoy it. Don’t worry about others joining the rat race. That’s their problem. At some point transition to passive investing. Or transfer to partnerships and private REITs … or pay the tax, and buy into an index fund. Making money is fun. Spending it is more fun.

1 Like

.

I suspect many tech jobs in large tech companies are like that. When employees are talking work-life balance and doing activists’ movement, have to be quite free. The really busy ones have no time for such activities.

4 Likes

I need a job like that…:wink:

3 Likes

Sounds too good to be true. This guy is rich. Lives in PA. Makes $1m a year. And yet he’s unhappy, especially with living in the BA. My unsolicited advice… is move.
I wonder if the tech companies have a lot of middle aged over priced unproductive bored employees like him. I wish I knew which ones… if I did I would dump or short their stocks. 10 hours a week and all the free time in the world to management $30m in RE assets? Hardly believable.

1 Like

GOOG, well known, you are living under a rock. TSLA, Elon Musk said 20% are like this.

Is Elon one of these? Seems to more interested in space and making babies than one boring car company. Google is on my list to dump when and if I do tax dumping in December to balance the winners and losers
I think Elon would be happier and more productive if he stepped down as CEO. Stopped making up lies about FSD and just spent his time inventing cool things for the future. I met an FSD engineer and a another Waymo employee this week. They both said they concentrate on small steps forward. The real thing is a way off fantasy

1 Like

.

Clearly he is bored with TSLA. He has to unload boatloads more before passing the baton. He is more interested in SpaceX. He is probably planning to live like J Bezos.

I bet any 25+ year old large tech company has at least 50% of mid rank staff like me. Perhaps excluding AAPL, NVDA.

2 Likes

Half of that from w2.
Not really unhappy, just bored and frustrated by state of affairs in Bay Area.

2 Likes

It is other side is always green kind of thought process.

Any job that pays above 100k, the employer gets at least 10 times return without which no one hire such place.

  1. I was working in big company more than 50000 employees strength. At one time, I have a got a call on Saturday 11 PM to attend a call and the meeting went until 4AM. Finally, I asked the program manager why do we have 5 hours call at Saturday, he replied we need to give status report before 5 AM to CFO !

  2. My manager gave a Xmas party one Friday 9 pm, we were two people in the same project, came later around 9:30 pm for that party. My manager was smiling at us and asking us “Are you coming from office?”, we said yes. Others were pulling my manager these guys are fooling you…like that, but my manager told them we were right. They never believed us and thinking my manager was just like that supporting us.
    One of my friend challenged me , “What kind of urgency you have when we have xmas party…blah…blah”. Then, I was looking at my cell often for mails. Again my friends mocked at me and asked me to put my phone off and join the party. Again my manager, who knows the truth, told them, Let us excuse two of these guys, but all colleagues wanted us to stop scanning phones, then we switched off to join the party.
    Within 30 minutes, my manager got escalation call, and he asked us to look at the email and respond. I showed my friends (who challenged us) the emails and people are waiting for us. Still they did not believe that we need to work on late night. At around 10;30 pm. I sent an email to my VP to provide me approval to go ahead. Within 5 minutes my VP replied with approval with a note “Urgent, we assured CFO it is going live tomorrow 5AM” that I showed my challengers why we came late.

My life was hell like that for 4 years, 24 x7 basis.

  1. In another company, we were supposed to work 9-5 as per norm, but we were working 6 AM till 3 PM daily for six months. I was fed up with such stressful job and resigned after 6 months. Even though my company was ready to give us more pay, we (myself and my partner) resigned without having next job.

  2. My friend (General Manager) came from Dubai to see his son working in tech company. He stayed there for 30 days, but hardly talk to his son as his son was always in meeting 24x7 basis. He felt bad and was telling me “Why he needs to spend such continuous meeting, as a manager, while I am GM and do not have such meetings last 20 years?”. I told him it is common as I know the truth.

Such life is very common in all tech companies, ranging AAPL to down bottom, without which they do not have any growth at all. Money won’t come easily without hard work, be it individual or company !

You work too hard man :smile:

1 Like

.

I have been lazing around for the past 20 years and my NW compounds at 18%. You should learn to let money works for you, not you work hard for money.

My experience is…

make no money.

This is now when I felt financially free stage.

I just showed an example of tech is easy job. I knew two of the VPs from bay area companies, they start work by 6:30 AM and stop by 11 PM. They earn at least half million/year, but their life is also like this. In addition, being high earners, they have high risk of firing.

In short, if techies does not work, how company make billions?

Just FYI: Whatever I heard, the techies life in AAPL is stressful without which they won’t be able to make such a big money !

My friend’s son story, he was working at TSLA pre-IPO until recently, now they sold some stocks and got 2.25M home full cash. This is the lucky part of techies ! He was working madly for almost 7 years!

3 Likes

Good ending to the story for your friend’s son.

In Bay Area the # of people whose startup’s valuation is zero is 10x than the ones who made money, and ratio to people who made money working for a company such as TSLA is probably 50x-100x.

Statistically, what is the % of startups that don’t have to shut shop as compared to ones who make it?