Investors and/or R.E. Agents in Expensive Markets Only (i.e. LA, NYC, SF, Chicago, etc.)

[Rosalina Brenda Berk]

Buenos Dias! 

I will be a licensed real estate agent in Los Angeles in a couple of months (taking state board exam in February) and I'm at the point where I need to write my business plan. With so many paths to take in RE investing, I've narrowed it down to two strategies and I'd appreciate any and all advice from those who have been (or are) in a similar position. 

1. Establish myself as a solid RE agent and save my earnings to purchase buy and hold property(ies) in affordable markets in Southern California down the line.

or

2. Join the flipping game that is being played out as we speak in the up-and-coming neighborhoods in Los Angeles. 

My short-term goal for 2015 is to net at least $35,000 from various real estate efforts combined (commissions, any referral fees I can get, possible wholesale earnings, etc.).

Mid-term goal (2016 & 2017) is to net $60,000 and $75,000 respectively, from various real estate efforts as mentioned above. 

Long-term goal (five years from now) is to have $6,000/month in "passive" income from rental property. 

Los Angeles is unlike other market, so I've heard and read here on Bigger Pockets. 

My questions to you are:

In a market like Los Angeles, and Southern California for that matter, what strategy makes the most sense? 

If you have your real estate agent's license, how have you been able to merge your roles as agent and investor? How have you structured your bushiness plan?

Thank you for taking the time to read this. I hope you enjoy the rest of your day ; )

-Brenda 

[Mark Mynhier]

@Rosalina Brenda Berk don't sell yourself short. In the LA Market you can make $35K in a single flip without much sweat (just some solid strategies). You should network and find investors with capitol and help them make a good return on their money. As an Agent, you should be able to get pocket deals which will allow you to be on people's short list of Agents to call. 

If you only average $20K per flip and do one a quarter, you are making $80K year. The margins here in the area CAN be great. You just need to partner up with some people who are experienced and learn the local market. Find some good REI clubs and network (FIBI is great, InvestClub for Women, Club in Action, etc). You will get both business partners as well as clients. Your network = your net worth.

Doing flips to fund the buy-and-holds is a great idea. Don't just look around here (where the CAP rates are 5%-8%), look in other emerging markets where you can get a much better return for your investment.

Good luck and drop me a line when you get your license...I'm always looking for another good Agent.