All Forum Posts by: Adam Gresch

@Matt Skinner

I read you loud and clear on all of that. Thanks so much for taking the time, I really appreciate the insight. I guess I'd better start scoping out in some easier territory, hahaha - a 23 unit for 2.7 million is absolutely outrageous. I'm sure you're netting way more on that Texas deal.

Thanks everyone for your responses. 

@Matt Rosas, no kidding about LA being the major leagues. I grew up in Florida and prices are at least double what I'm used to seeing for the types of properties you can buy out here. I think I'm definitely going to have to invest out of state and get really creative if I'm ever going to crack this market. 

@Matt Skinner, thanks for your input. At one time I almost moved to Austin and was amazed at the deals out there. But I understand people have caught wind of that recently. What has your experience with buying out of state been like for you? I take it you don't manage it yourself. And how does the distance factor when you're looking to buy? I would never do a deal sight-unseen, and I take it you wouldn't either. 

@Dawn Anastasi, I'm definitely starting to see lots of people talking about doing their deals out of state - it just struck me as adding a lot more risk to buy outside your home turf. My main concern is avoiding what pitfalls I can if I go that route, because it definitely is not a beginner's market out here in LA, especially price-wise. I also never realized someone would buy a negative cash-flow property on purpose. Unless you have some kind of inside information about that market improving in a major way. Anyhow, thanks for your two cents - and Go Packers (my folks are from the Milwaukee area) .

Hi all, 

I am fairly new to the world of real estate. I've only worked in the field for a little over a year now and that's mostly been in the maintenance side. I'm still pretty young, but have been studying voraciously about REI and I am really eager to jump in a start investing asap.

The only problem for me is that I got my experience out of state. That didn't seem to be too big of an issue for me until I started looking around my local market. I just moved to Los Angeles last month and pretty much immediately began scoping out deals. However, I have noticed that real estate here is prohibitively expensive. 

I'm mostly interested in buying and holding small multifamily units and I am noticing that dublexes/triplexes/quadplexes are selling out here for a fortune. And what you get is a junked out place in a crappy location with ridiculously low rents. 

So what I want to know is who is buying these places? And how are they making any money at all? For example, if you're having to spend upwards of 350K for three units that are only grossing $750 per month, per unit, how are you ever even going to come close to achieving the 1% rule? And that's a very forgiving example, by the way, just based on what I've seen. 

Anyone familiar at all with the Los Angeles market feel like chiming in and setting me straight? Because at this point I am seriously considering the prospect of making all of my investments somewhere besides LA, and that is really not what I wanted to do. 

Derek, I too am a bit wary myself when it comes to the creative financing, that's why I want to know what other peoples' experiences have been.

James, what has your experience been with owner financed deals? What sorts of interest can I expect to pay typically and what do you think people want in terms of a down payment, if any? I know this is always going to vary wildly depending on the person and on the market you're in. But what have you seen personally in this regard?

Kenneth, I am in the same boat as you. I would also be interested in hearing about this. I have not had a lot of real world experience with financing and from what I have heard, the best option for those in your particular situation would be some form of creative financing like doing a seller financed property, lease option, etc. 

But again, I am like you and want to hear from some people who actually have had some measure of experience/success with these sorts of deals. 

Good luck Kenneth!

Dang, I wish I had seen these posts earlier about that meeting. I'm new to the SoCal area and am really looking to get my feet wet. When is the next BP meetup? 

Hey @Brandon Turner!

Thanks for the reply. Yes, Florida seems like a great place to invest. The ease of entry looks fantastic and the returns also seem to be fairly solid. Orlando is a fun city (check out Islands of Adventure and Universal while you're there)! I can't tell you much about Miami, I've only been once or twice - just be sure to brush up on your Spanish before you go down there, it's the official language!

Multifamily properties are what I am most interested in. I currently have a mentor here in Switzerland where I am currently working who started out with renting small apartment buildings, living in one unit while rehabbing the others. It seems like a good strategy and I'm learning a lot from working with him. The only thing is that I am trying to get a feel for the market back Stateside, because I'm sure it's very different from over here in Europe!

Thanks again!

Hi everyone!

My name is Adam and I'm completely new to investing. I'm from South Florida, but I am currently working abroad. I plan to return to Florida soon and then pack up and move out to Los Angeles. I know it's a tough market out there, and it seems like everyone that lives there invests out of state. I am looking for M/F properties - anything from a triplex to 10 units that can cash-flow for income. Any advice would be totally welcome. Thanks!

Hi Mike,

I'm also a fellow new-comer, but I am actually moving to LA soon. I totally understand your trepidation with the market for M/F properties out there - it's pretty slim pickings. I'm actually seriously considering doing some investments in Florida (my home-state) before moving. If you're still looking, Tampa and Orlando look like attractive markets to me.