Any investors in the Downey, California area?

Question

My plan is to find a distressed property (either SFR or small MFR) in and around the Downey, CA area that I can BRRRR on but I am still shopping/browsing around for a deal. I've just started looking, so I don't have any contacts in this area so I figure where else is a better place to start than right here on BiggerPockets. I would like to hear from other investor's experiences in and around this area, especially if you're an Agent, Lender, Contractor, or Property Manager. Let's get to know each other! I'd like to know more about you and what you do, perhaps I can find a way to be of some assistance to you as well!

John Sledge · Answer

@Tony Cruz MLS is the best way that I have found to get the most accurate sales data.  We have Realtors that we work with and when we find a property we are interested in I ask them to run sales and given them the parameters I am looking for.  The important part is taking that data and analyzing it to determine your renovations and ARV.  If MLS isn't available then using the websites available are the next best thing.  Ensure that you are using closed sales and not active listings for your research.  Thanks for the question.

Tony Cruz · Answer

@John Sledge Hi John, welcome! Thank you for checking in and sharing that information. I agree that is very important to have an accurate idea of what an ARV should be, if you do a proper rehab. As of now I count on using online tools such as Zillow and asking an agent for comps. Any suggestions as to other ways or websites that might be more efficient to get these comp or recent sales data to get a better idea of what a potential ARV should be around?

John Sledge · Answer

@Tony Cruz The key to success in a value add buy and hold is knowing how to analyze comparable sales. You can analyze sales similar to you project to determine the As Is value. If you analyze sales of similar size that are selling at the higher end of the market you can determine what renovations are needed to complete at the higher sales price. This is critical to ensure you have completed enough renovations to complete but not completed renovations that are not required in the market area. You can also use these sales to determine your ARV (after repaired value) to ensure you can refinance at the best value. Best of luck and let me know if we can be of help! John

Dmitriy Fomichenko · Answer

Well Tony, I have been part of BP community for quite some time now. What brought me here is subject or real estate investing (just like you!). Yes, I am an investor and I help other investors by unlocking their IRAs and 401Ks so they can invest their retirement funds in real estate. Personally I do passive investing (syndications and private lending).

Tony Cruz · Answer

@Dmitriy Fomichenko

Thank you for your kind wishes! I see you’re from Anaheim Hills. Do you invest yourself? What brought you here to BiggerPockets?

Tony Cruz · Answer

@Tyler Hungerford I typically drive around the area since I live nearby. But I haven’t really seeking out physically distressed homes while driving by. That’s a good idea and something I should work on keeping in mind as I drive about the area. I’ve mainly been using the “Foreclosure” option here on BiggerPockets with some surprising potential there that could work and perhaps I could take a quick drive to see something in person if the numbers work out.

I’ve ran into a number of potential deals on using the Foreclosure and BRRRR tool here on BiggerPockets. However, my main goals right now is to get a small team in place to have ready so I can start making offers with confidence I’ll be ready if an offer is accepted. My main concern at the moment is finding a good investor friendly contractor with experience, who also invests themself, and is ideally from a referral.

I see you’re from Riverside! Do you buy in that area or somewhere else? When did you get started? How’s it going now? Where do you want to be in the future?

Cheers,

Dmitriy Fomichenko · Answer

Looking forward reading about your success Tony!

Tyler Hungerford · Answer

That is an awesome goal man. How often do you drive for dollars? Have you seen any houses you like? You should consider writing some home owners letters and see if they have any interest in selling directly to you.