Having a tough time getting started in Los Angeles

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Having a tough time getting started in Los Angeles

Gerrell King
Los Angeles, CA · Member since 2017 · 23 posts · 2 votes

Hi everyone, I'm been pulling my hair out (not literally) trying to figure out where to get started with building my business.  I'm based in Los Angeles and originally from Bakersfield, which I visit often.  

My biggest problem right now is choosing a market and being able to afford marketing costs.  I've been researching what to do and hear so many different things.  Some say get a website and business cards, others say don't waste your time on websites and cards and focus on finding deals.

From what I've heard, direct mail is the best way to find deals but even that approach can be pretty expensive here in LA since it takes months and a massive volume to get the phone ringing.

I've considered marketing in Bakersfield but if I do, I've been told I'll need to be able to drive there asap if I book an appointment, and that isn't always possible being that I work full-time.  

I'm ready to get started but don't want to spend my time doing the wrong things and wasting money.  

I have a budget of $500/mo.  Anyone in LA have advice or input on what's working for them?

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Andy Cross
Wholesaler · Culver City, CA · Member since 2015 · 185 posts · 56 votes
8y

Hey Gerrel,

Yea...LA is not the best place to get started (IMO...some would say it doesn't matter the market...but it does). With the new stadiums and the looming Olympics...this market, to me, is for those with capital, and lots of it.

I live in the LA area, however, I focus my attention on the Antelope Vally (Palmdale and Lancaster to be exact). Far enough away to find deals, but close enough to set appointments and get to them within an hour and a half (if you can get away from your FT job). 

Definitely get the cards (you cannot network without them), and the website (if only a single-page landing page). To those that say you should only focus your time on finding deals, those two items can be produced in a day. There are 6 other days in the week for lead generation.

I'm going to follow this post to see what others say. 


Originally posted by @Gerrell King:

Hi everyone, I'm been pulling my hair out (not literally) trying to figure out where to get started with building my business.  I'm based in Los Angeles and originally from Bakersfield, which I visit often.  

My biggest problem right now is choosing a market and being able to afford marketing costs.  I've been researching what to do and hear so many different things.  Some say get a website and business cards, others say don't waste your time on websites and cards and focus on finding deals.

From what I've heard, direct mail is the best way to find deals but even that approach can be pretty expensive here in LA since it takes months and a massive volume to get the phone ringing.

I've considered marketing in Bakersfield but if I do, I've been told I'll need to be able to drive there asap if I book an appointment, and that isn't always possible being that I work full-time.  

I'm ready to get started but don't want to spend my time doing the wrong things and wasting money.  

I have a budget of $500/mo.  Anyone in LA have advice or input on what's working for them?

2Reply
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  • Max Gradowitz
    Bakersfield, CA · Member since 2016 · 378 posts · 307 votes
    8y

    Los Angeles is likely oversaturated of a market for direct mailing.  Bakersfield would be much easier, but it's still very saturated here as well.  I would consider some of the smaller outlying towns in Kern County perhaps.  Longer days on market if you are flipping, but considerably less saturated with other direct mailing.  Something to consider...

    0Reply
  • Andy Cross
    Wholesaler · Culver City, CA · Member since 2015 · 185 posts · 56 votes
    8y

    Hey Gerrel,

    Yea...LA is not the best place to get started (IMO...some would say it doesn't matter the market...but it does). With the new stadiums and the looming Olympics...this market, to me, is for those with capital, and lots of it.

    I live in the LA area, however, I focus my attention on the Antelope Vally (Palmdale and Lancaster to be exact). Far enough away to find deals, but close enough to set appointments and get to them within an hour and a half (if you can get away from your FT job). 

    Definitely get the cards (you cannot network without them), and the website (if only a single-page landing page). To those that say you should only focus your time on finding deals, those two items can be produced in a day. There are 6 other days in the week for lead generation.

    I'm going to follow this post to see what others say. 


    Originally posted by @Gerrell King:

    Hi everyone, I'm been pulling my hair out (not literally) trying to figure out where to get started with building my business.  I'm based in Los Angeles and originally from Bakersfield, which I visit often.  

    My biggest problem right now is choosing a market and being able to afford marketing costs.  I've been researching what to do and hear so many different things.  Some say get a website and business cards, others say don't waste your time on websites and cards and focus on finding deals.

    From what I've heard, direct mail is the best way to find deals but even that approach can be pretty expensive here in LA since it takes months and a massive volume to get the phone ringing.

    I've considered marketing in Bakersfield but if I do, I've been told I'll need to be able to drive there asap if I book an appointment, and that isn't always possible being that I work full-time.  

    I'm ready to get started but don't want to spend my time doing the wrong things and wasting money.  

    I have a budget of $500/mo.  Anyone in LA have advice or input on what's working for them?

    2Reply
  • Gerrell King
    OP
    Los Angeles, CA · Member since 2017 · 23 posts · 2 votes
    8y
    Thanks Andy Cross that’s a good. I’ve definitely heard “the market doesn’t matter” plenty of times yet I’ve never met anyone that is successfully doing business in LA. The one person I do know has been flipping for 20 Years and has foreign investors as partners and they only flip apartment units. Nonetheless, I ordered my business cards last night and bought my domain name. I’m gonna take your advice and build a simple website. What are your thoughts on marketing outside of LA County?
    0Reply
  • Andy Cross
    Wholesaler · Culver City, CA · Member since 2015 · 185 posts · 56 votes
    8y

    Hey @Gerrell King , I say go for it. Again, as long as you can get there in a reasonable amount of time. Or, if you have contacts outside of LA County that you can JV with, they can help you with those leads as well.

    I'd consider San Bernardino and Riverside Counties if I knew about those areas. I choose to stick with markets I know about. I'm even considering Chicago; a lot of activity happening out there.

    0Reply
  • Gerrell King
    OP
    Los Angeles, CA · Member since 2017 · 23 posts · 2 votes
    8y

    @Andy Cross That's interesting that you say that.  I have a few friends that live here in LA but they've been buying properties in North Carolina and Georgia.  They told me if I were market in those areas to find them deals they'd be willing to either pay me a commission or maybe even give me equity in the deal. 

    I've been considering it but I only have a budget to market to one location and since I'm at the beginning phase of building my business, I wouldn't be taking appointments or anything that I would be doing if it was in a closer market.  Decisions, decisions...

    0Reply
  • David Friedman
    Property Manager · San Bernardino, CA · Member since 2014 · 473 posts · 238 votes
    8y

    @Gerrell King

    If you marketed to San Bernardino/Riverside Counties and find a house, I would buy it. Flipped over 50 homes last year in those counties.

    0Reply
  • Brett Goldsmith
    Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
    8y

    Create a custom driving for dollars list to hopefully reach people that aren't getting bombarded with mail and also look into door knocking. Do the things that most people won't put the effort into doing. 

    0Reply
  • Gerrell King
    OP
    Los Angeles, CA · Member since 2017 · 23 posts · 2 votes
    8y

    @Brett Goldsmith I really like this idea.  I've been doing a lot of research on how I can make LA work and I came across a video on YouTube with a guy saying how he closed a deal by calling the seller.  He mentioned the seller was receiving a ton of yellow letters so he asked why she decided to sell to him and her reply was because he was the only one that called her....go figure.  

    Plus door knocking would cut marketing costs big time and I drive a hybrid and can write off the mileage.  

    Do you think people would get pissed off at me popping up at their home?

    0Reply
  • Brett Goldsmith
    Investor · Los Angeles, CA · Member since 2012 · 1k+ posts · 500 votes
    8y

    @Gerrell King Some people care and others don't. The more NO's you get the closer to a yes you are. I personally door knock people who are losing their home with a service orientated mindset. If they don't want to be educated or to speak to someone who genuinely wants to help then it's their loss right? On to the next.

    0Reply
  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    8y
    It’s always going to be a balance of time vs money. You trade one for the other. Door knocking is free and effective, but it takes time and is not scalable. D4D is the same. But maybe those are a good start for you if you can make it work around your f/t job to see if this is even something you want to do long term.
    0Reply
  • Jeff Greenberg
    Real Estate Consultant · Camarillo, CA · Member since 2010 · 2k+ posts · 1k+ votes
    8y

    https://www.biggerpockets.com/forums/521/topics/53...

    Come meet fellow BPer's in LA

    0Reply
  • Gerrell King
    OP
    Los Angeles, CA · Member since 2017 · 23 posts · 2 votes
    8y

    @Jeff Greenberg Thanks for the invite.  I'll see you Saturday!

    0Reply
  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y

    Welcome, @Gerrell King.  SoCal can be a tough nut to crack for newbies.

    A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

    Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

    The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

    Also, have you considered an owner-occupied small multifamily for your first deal?

    You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

    My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

    I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity.  It was a great investment (and still is).

    Good luck!

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    0Reply
  • Gerrell King
    OP
    Los Angeles, CA · Member since 2017 · 23 posts · 2 votes
    8y

    Hi @Logan Allec how many letters did you mail in LA county compared to Kern county?

    Also, how did you manage booking appointments to view the homes in Kern county?

    As for Multi-Family investing using an FHA loan, I plan on doing just that using the profits from my first couple of deals. Great idea!

    0Reply
  • Naren Gunasekera
    Moorpark, CA · Member since 2016 · 22 posts · 14 votes
    8y

    @Logan Allec that's great to hear that you managed to house hack in Santa Clarita. How did you find that deal if you don't mind me asking? I'm a newbie looking to house hack in LA. I haven't started looking yet because I don't have the reserves but I was also thinking of leveraging the new ADU law (and my knowledge of land use planning) to do a garage conversion with a FHA 203k loan to house hack. All still in the beginning stages of planning though.

    0Reply
  • Curtis Harvey
    Investor · Top of the World · Member since 2016 · 165 posts · 40 votes
    8y

    @Gerrell King Greetings and welcome to BP. I think you have to find a strategy. There are plenty in the forums here. You have to develop a 1 page business plan and then you can spend your time focusing on accomplishing those goals. You will then be able to get assistance from the community. It is hard for everyone to guess what your dreams are, but you can use the experiences of the community to help you hone in on the details. The LA market is saturated but I am a BRRR investor and I do deals all of the time and I have a FT job as well. If you need help with anything do not hesitate to reach out to me for insight.

    0Reply
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