Southern California Investors

[Domonique Hudson]

Hello guys and gals,

I hope your 2015 is off to a great start. I wanted to know with California being such a competitive market and having some cash investors buying at up to 90 to 95% of ARV on some properties for buy and hold. Traditionally investors required that a wholesaler would get a property at 70% minus repairs but it seems like thats not necessarily the case any more. What do you think is a safe number these days or is that whole 70 percent philosophy out the window now and guys are buying anything as long as its anywhere between 80 to 90 percent?

[Cornelius McClendon]

If I were you guys I would go to smaller markets with better returns. I've always wanted to buy in California but the numbers just don't make sense for my returns on my buy and hold strategy.

In Milwaukee you can buy a cashflowing 4 unit for $100,000 with monthly rents of 2,900.