If you had unlimited funds, and lived in Los Angeles, what would you invest in?

[Cara B.]

Hi there, I am a new real estate investor, living in Los Angeles, with access to the capital needed to build a real estate business. What would you do if you were in my shoes and just starting out?

I am most interested in flipping houses in California (within 4 hours of Los Angeles), because I would rather not deal with the rentals in CA and I am wary of out of state investing for my first investments. But I'm open to other options. I'm also possibly interested in investing in other people's flips in the future, once I have more experience.

I think I would like to eventually invest in higher-end flips ($3-$5M), but I would like to start smaller for my first flip, since I will most likely make some mistakes (buy for under $1.5M). But I'm not entirely sure the best way to find good deals on single family homes at that price point.

Or is there something else you would recommend entirely? Thanks for the advice!

[V.G Jason]

Define unlimited money. $5M in Charleston is different than Los Angeles. Big diff between $10 and 20 MM in Los Angeles, too. To be a real player in REI, you'll need to come in 50MM ++ and if you're at that level you focus on other things first.

Assuming you have a budget of say $50MM+, I go after agriculture land, land with mineral rights and oil rights and ditch REI. If you've already done that or have a smaller budget like sub $30MM, I go to the best neighborhoods in the best cities, and buy the most distressed houses.I flip the one's in states where it's hard to manage tenants or re-fi into STR, re-fi out with 1-1.2 DSCR in areas where managing them is convenient in landlord friendly states. When you buy deep and try to reno, have a RE attorney besides you to walk through how to form teams and construct contracts to people work for you and you don't get tied up. Get that outlined so you're able to play ball in the field and not get played.

I invest on the side in private & public debt, take the interest payouts and buy into private & public equity and more RE. Keep that money flipping, keep tax deductions high, and keep buying primo real estate and zero focus on the gutter **** in Ohio or what not.