New to BP (Los Angeles)

[Raquel L.]

Hello all, my name is Raquel-- I'm new to BP and looking to meet other like-minded investors/potential mentors/etc. I'm looking for cash flow deals in MANY states right now. I currently invest in SFH & 2-4 unit multis. If I was to say one thing about my investment style... I'd say it's like water, it adjusts to fit the market. :) I recently read Equity Happens and it turned my heavy cash-flow brain into a swirly-whirl of new ideas. I'm currently in Atlanta, then flying to Ft. Myers, FL, then to Austin, TX, and finally... back home to LA. If anyone knows of investment clubs or meetups in any of those states in the next 2 weeks, please let me know. I'd love to attend!! :)

[Raquel L.]

The person that wrote that probably can't grasp the appreciation concept because they're only clinging to cash flow. I used to be that person, so I get it. Okay, free duplex story is about the power of leverage. That's it. Leveraging what you've got and using it to get several more instead of say, one fully paid off. Equity Happens talks about using the equity in your personal residence to fund your investments. Risky? Depends on the person. For me, I know that no matter what's going on in the world, I'm going to make money. I know that I am responsible and will always pay my bills. I also know how to be smart, and keep reserves on every property.

What I WILL say about Equity Happens is that you can't invest for appreciation in EVERY market, but you CAN find the appreciating markets and invest there using the principles in the book. What really HIT me about the book is this: I was looking for cash flow-- there's a chapter about cash flow versus appreciation. I ran the numbers on this myself. I abandoned my simple cash flow formula and have added the appreciation play. I still look for positive cash flow after expenses of at least $100/door, but I look for that in GROWTH markets now instead of slow and steady.

The book is all about leverage and appreciating markets-- which is EXACTLY what's happening now, in many markets. The days of hardcore cash flow were 2-3 years ago. Now, there's mild cash flow, so you have to invest where's there's growth and potential for appreciation. At least, for me-- I don't have the connections to buy the secret deals YET. ;)