2018 Market in California (Central valley area)

[Thai Bun]

Hello everyone. I've been following BiggerPockets for a bit now. After listening to half of the podcast that has been put out, I became really interested in doing multifamily investment. I got to the point where I paid and attended one of David Lindahl's "Multifamily Million" boot camp that was held in Los Angeles. As of right now, I actually found myself a partner that is also really interested in doing multifamily. A little background on myself and my partner. I am 18. I am very young and real estate became very appealing to me because the amount of cash flow it can possibly bring in. I am also currently in the process of getting my real estate agent license if that's relevant. I have literally no experience in the real estate market prior to all of this. The past few months was just educating myself by listening to podcast, reading books, and actually trying to practice underwriting deals. My partner, on the other hand, is experienced in investing in projects before. His main platform to do this include Crowdstreet, Realtymogol, and Realcrowd. But now he wants to actually do the work not just only invest his money and sit on it to make a return. We just create an LLC, you can find it here at oxfordstreetinvest.com, and we are currently looking at properties. The bottom line is, I have no clue how good the California market is. We are looking at the Stockton and Sacramento area but we yet still have to find a good deal. Any tips for us to efficiently find a property faster or things like that? Thank you guys in advance for any input you have.

[Michael Swan]

If you want to do true Multifamily 5 units or more in one building, I would suggest finding an emerging market like David Lindahl suggests in his Emerging Markets book.  I have sold and 1031 exchanges all my pricey San Diego single family rental properties for an emerging market true Multifamily Apartment Complexes.

In California, price per door is crazy high and that is even in D class areas.  In areas where I would not feel comfortable having my 16 yr old girl walking around the neighborhood at 9 pm. on a Friday night.  

Right now if you don't want to go outside California, then hoard a lot of cash until this entire thing comes crashing down.  As they continue to ease up the lending standards we will see the flippers come out in droves and then the end will not be far away.  Late night gurus for wholesaling and flipping will be also out there too.

 I have been starting to see the signs of a phase or stage 1moving to a stage 2 selling market in California according to the parameters identified in David Lindahl's emerging markets book too.

Swanny