Will this work? A creer path to owning cashflow property.

Question

Im starting out on my path in Los Angeles, CA due to density and a predominant rental culture. I need INCOME, KNOWLEDGE and CREDIBILITY that only licensure can offer. I'm considering getting my Real Estate sales person license (credibility) as a requirement to getting my Certified Apartment Manager (CAM) License (income and knowledge). According to payscale.com apartment managers average $36k a year, this would provide me valuable knowledge and a steady income for a conventional loan on a 4 plex

Should I follow this career path?

About me:

I have seven years HOA president experience under my belt. It was a learning experience working with the management company, vendors, a budget, vandalism, property walk throughs, maintenance, getting estimates, getting my hands dirty cleaning up other peoples mess, all for FREE while paying my dues. At some point the inmates want to run the asylum and I sold. I have cash in hand (100k) and I'll want to own a cash flowing property within 3 years.

Fay Chen · Answer

Yep yep. Sounds like it's time to get that real estate license! Go to a few BP meetups and see if you can get together with other aspiring starter and grow together.

You know what would be great? A one-stop shop that combines property management w/ honest handyman + bookkeeping & tax preparation service. That would be great for small investors like me!

Fay Chen · Answer

$36K is not much in LA. If you are looking to own a 4-plex in an area within 2 hr drive (that's about 60 miles), you'll need a higher income for a traditional loan. Since you plan to get a real estate license anyways, maybe work for local active investors. Just be their slave for a while, write a bunch of offers, oversee constructions, and manage properties for them. And you can have your own property management gig and make that $36K/year. I guess what I'm saying is only managing properties is not enough to grow a portfolio here.

Ludmila Hill · Answer

Account Closed you don't need a CAM to be an apt. Building manager. I'm currently the building manager of where I live. I manage a 35 unit building, the owners are a corporate company who owns over 30 buildings in the LA area, totaling just over 2000 apartments, they do everything by the book and it was never a requirement or request for us to get a license. As for the $36k a year, really depends, on paper I make close to that, but I don't see the money, that's only on paper. In reality I don't pay rent and get a small wage. So on paper they deduct the rent and pay me the leftover. But the small wage is not enough to live off of, in my case, my husband makes the bigger income where we can pay for the bills. Anyway, if you want a reference, PM me, I can give you the name of the company I work for and you can send them your resume. Best of luck!

John Van Uytven · Answer

Account Closed

In the end you have to do what makes you happy, it really doesn't matter what we think or say.

Since you asked though, I will give you my $.02

Would it work? sure. Would it make you happy? maybe.

Is it necessary? I don't really think it is necessary.

I don't know about California laws, but are you required to have your license to become a CAM?

I was working as a property manager for 260 units and I didn't have either a license or a CAM cert.

What is your current career?

If not real estate, why do you want to make the career change?With 7 years as an HOA president, I am sure you could get a job without a license or CAM as a property manager.

I don't blame you for wanting to sell.

With your cash in hand have you considered other options?

Have you considered investing out of state?

Investing in notes or being a hard money lender?

You sound like you have a great idea, keep working towards your goals.

Good luck and remember

*DFTBA*Don't Forget To Be Awesome

Account Closed · Answer

@John Van Uytevn House hacking a 4 plex with an FHA loan @ 3.5% down Is what's being recommended by others on BP to get started. From what I've read my documented background may or may not be enough to get a CAM certification. 12 months on site experience is what I read.

http://m.naahq.org/learn/education/certified-apart...

I figure if I can do the job that someday I'll pay others to do, a bank will take me seriously when I ask for a loan because I'll have a real estate license, a CAM certificate and a W-2 for income. Earning more income in Los Angeles is a must, but I really don't know how to do that in the real estate space just starting out.

Note investing is appealing to me, I'm not currently sophisticated enough to that yet.

Jeff B. · Answer

The HOA and CAM would be be useful backgrounds for Buy&Hold investing (where a cash-flow can be generated).  Other forms of REI {wholesaling, flipping, notes} are much closer aligned to Spot Trading.

I got started by renting out my home, and doing a 1031 into a 6-unit.  No RE license, No HOA or CAM background either.  Wife & I are approaching 20yrs in this property and it has worked out well.

James Paine · Answer

Account Closed  I am not sure that getting your real estate license offers credibility.  If someone tells me they are a real estate agent I usually dock them a few points they have to earn back ;)

Account Closed · Answer

Update: I called the National Apartment Association (NAA). I asked the educational rep Stephanie about the Certified Apartment Manager requirements in addition to the 57 hours of training. I let her know I have eight years experience as HOA president, I told her how involved I was in the day to day operations of the HOA, and how I supervised the replacement of all the vital components including pool gate, pool motor, patch and seal drive way, repainting if all the building exterior, letters, rules, notices, irrigation, landscaping, etc. Her response was, "unless you worked for a property management company and got paid for it, it doesn't count". I then realized that property managers must be getting hired without the Certified Property Manager certification they offer at $815. Just an FYI to anyone with HOA experience looking to get certification from the NAA

Account Closed · Answer

@ James Paine That seems like common reaction.

Account Closed · Answer

@J Beard, ESRI (an employer) and the University of Redlands (seasonal tenants) are awesome, views of the hills are nice for an SFR, Redlands is a nice area, with lower density, and growth potential.

Will this work? A creer path to owning cashflow property.

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