How do Real Estate developers do well in Los Angeles?

[Marlon Thomas]

I’m just curious but how do developers do so financially well in LA? 

With the high taxes I don’t see California is very investor friendly for developers. I was told to stay away from investing in Los Angeles.

Although with all of the articles I’ve read, LA is apparently one of the top choices for real estate investors especially internationally.

I know that Los Angeles has constant demand, but I’m not in Los Angeles or know nothing about the market. Hopefully those in LA can fill me in. Thanks.

[Etienne Martel]

Hey Marlon,

From my experience, investing in California is great if you can fund the property with all cash or with extremely low interest.

I'm from the SF Bay Area, but my brother lives in LA and knows a few investors that invest in LA. Investing here is similar to LA. There is tons of money to be made, but there are so many eyes on these markets that big time investors can throw their cash at some deals to outbid you. 

I'm not saying that you should give up on these markets, but you will have to figure out how to squeeze yourself into some investments. 

Thanks! Hope this helped