All Forum Posts by: Alan R.

@Account Closed I've read that several asset managers wont sell to you if you don't have a LLC/corporate entity. I haven't personally gotten that far so I could be misguided. I'm in a similar boat as you. I think if you're getting into the note space, it's a worthy upfront cost if you're in it for the long haul.

Alan, great question. Also, great name! I think the answers above give a good explanation of the challenge of finding cash flow in higher priced areas in general. Unless of course you are willing to put 40% down. 

I think investing for long term appreciation in the outer South Bay cities is interesting. The high prices in the beach cities have pushed home buyers to Torrance. Increased prices in Torrance have pushed home buyers to places like Lawndale, Gardena, and Lomita. Although I personally think you can find gems in places like North Redondo Beach and certain parts of Torrance. But still would be a challenge if your looking for cash flow. More of a flip or appreciation play. 

Thanks @Jay Raught! I was just browsing endless questions when I came across this. Lost of questions on this forum are more advanced. I understand you can't be a complete expert and you need to get your feet wet but it's important to have a strong foundation. That's what I'm trying to build. 

Hi Angela. As you probably well know the Los Angeles market is expensive. 300k from what I've seen can get you started but your options would be limited to condos. Or houses in not the best parts of town. Not that that's a bad investment, it's just what the market here is like. It looks like your in Long Beach. I actually like Long Beach and surrounding neighborhoods because of the diverse economy (port/convention/university). You will probably be looking at Wilmington, maybe Lomita, Long Beach, and maybe some parts of San Pedro. Good luck! 

Angela Fisher

@Ryan Howard - Thanks for the response. It seems like we are looking for the same thing. I have done a deal before and wish I would have had the BRRR mindset going into it.

@Brent Coombs - Thank you for the response. I went through the thread. Great info. I need to learn more about refi cash-outs. I've done a refi for the purpose of getting a lower rate but never for getting cash out. I imagine it's a similar process? In this situation the home is now hopefully worth 150k, I put 30k in to buy it at 150k, so I would be able to pull 80k cash out in the refinance. Is that correct? 

@Joe Villeneuve - Thanks Joe. Very interesting to hear about the Credit Partners. Also a new concept for me. Seems like they would come in handy once my debt/income ratio gets out of balance. 

If you have any success or experience with the BRRR strategy I would love to hear about it! Do you like it, what are the challenges? Thank you!

My situation:

I'm having a hard time understanding the refinance (last step) of the BRRR process. For example, if I put 20% down on a 100k property with a 30yr fixed mortgage, fix it up with an extra 10k out of pocket, rent it... what happens next? I put in 30k total to get this investment property, when I refi into another 30 yr fixed I'm not sure what is happening logistically. Am I getting 30k back?

I've used FENY. It's a great ETF and you can trade it for free on the Fidelity Investments platform. Although I'm not a big believer in trading on short term news for long term strategies. Perhaps for a speculative position. 

 Thanks Tok. I agree. They are great for newbies and straightforward.

 Forget to mention that you wrote the article I read!

 Ali thanks for the welcome. I grew up in Venice and know the area well. I just got done reading an article on the 2% rule. It's a new concept for me. I don't see how you can get 2% or 1% in an investment property in LA. Does that mean it's not a good market?