BRRR In Southern California

[Pete Perez]

Hello BPers!

I am working towards my first investment opportunity. I want to break into the buy and hold world. I currently live in Southern California. I met with a couple different lenders and was pre approved for $250k. My goal is to use the BRRR method to get started in single and multi family long term holdings. I don't have a lot of capital to start, which is why hard money is an attractive method for me.

However, the lenders I met with told me it would be incredibly difficult to find a deal that would pencil given how high purchase prices are right now. They also said I would have a hard time finding realtors who would be willing to work with a newbie. They recommended I wait for the market to correct itself in the coming years and buy when purchase prices are lower. It would be really great if I could hear from any investors currently using hard money to purchase their long term holding properties and refinancing (BRRR). Or even any investors that have the 20% to put down on properties. Have you found this to be the case currently? I am looking to buy in the following areas:

San Bernardino County

• Fontana
• Redlands
• Rialto
• Colton
• Perris
• Moreno Valley
• Yucaipa

Thanks everyone!

Pete

[Michael Roche]

Pete, this may be a crazy suggestion but it is what I did and has been pretty helpful. On my first purchase I did an FHA loan with 3% down and rented all my rooms out and lived in it for free (not worrying about being positive cash flow, although I was). This has given me land lord experience and an opportunity to save all the money I make at work. At 6 moths in I Re -fied to conventional to get rid of the PMI. I have saved about $30k now in a year and a half and im looking to purchase another rental later this year possibly next year with 20% down on something affordable ( probably out of state). If you are willing to sacrifice living with room mates who are paying you monthly this could be a great way to start. you could also, while doing this, save up and reamertise with a lower monthly payment to make the property cash flow for you a little better. These are just some ideas that im kicking around in my own head on what my next move will be. your not too far off from my current situation and I know getting started is hard. Let me know what you think of these ideas.

Michael