All Forum Posts by: Andres Murillo

Hey Daniel! Would love to connect with you and learn more about this. 

Depending on your reason for selling you can explore a creative option where you can maintain ownership, gain capital, and still allow for your STR to flourish.

BiggerPockets, local meetups, and FB groups are great ways to start networking. I think the networking piece of being a real estate pro is the most important part. The more people you engage with the more perspectives you'll be introduced to. The learnings you take away from every person you interact with will help ensure success. 

Paralysis by analysis is a real phenomenon. 

Especially in real estate where the dollar amounts, processes, and factors involved all seem overwhelming at first. 

I agree that most people would be better off making an investment rather than just analyzing their life away. But everyone has a pivot point where they turn from "planner" to "doer". I've been a REI consultant working mostly with individuals for about 6 years now. There are would-be clients that I've "worked with" from day 1 who still don't own real estate. It's definitely frustrating but I've learned that I can't help everyone.

@James Hamling is definitely correct. 

Terms matter the most. 

And to add to the idea of "terms matter most", Cash vs Financed is a term of confidence for the seller. If you're purchasing conventional and have enough cash in the bank to pay for it cash, your seller will be extremely confident in your ability to close, despite the fact you're getting the loan. Sellers want to know that if they choose your offer, you will close. Make sure you're tight with your contingency periods or even remove contingencies when possible and you'll find much greater "offer power" than simply buying cash. 

@Kayla Mcpherson working up the capital to keep buying is the primary limit for almost every investor. There are a couple of ways you can address this. 

1. Focus acquisitions in growing areas that will appreciate rapidly. Make sure your property "matches" the neighborhood from the perspective of an appraiser (ie, buy the 3/2 sfh instead of an awkward triplex in a traditional bedroom community filled with 3/2 sfhs). This will help you to quickly access equity via HELOC or cash out (rates will impact which option is best). It's important to match your community so that there will be plenty of transactions to support your higher valuation.

2. Form partnerships, either as a GP or LP. GPs will be responsible for the bulk of the work required to make an investment work, LPs will be primarily responsible for only capital. Local meetups, BiggerPockets, FB groups, or sites dedicated to this concept (ie mogul.ooo) are all great places to find partnership opportunities. Prove your track record of success, find deals, analyze deals, and ultimately do all the work required to execute deals as a GP. Or make your capital available to GPs and fund smaller deals (since you mentioned being more limited on capital). Mogul is actually a concept where you can invest $100 or more into active deals. As an LP you'll be able to collect enough of a return to scale towards your next individual purchase on a fast track.

@Dan Riley Here's my "Markets Matrix" sheet I like to share with folks just starting out. This is helpful for getting a better understanding of why investors are choosing particular markets. To be clear, this is based solely off my experience (REI consultant and investor for 6 years) working with clients. These are markets I've helped investors buy in and I've plotted the trend of their rationale when choosing that market. There is A LOT more nuance to consider (neighborhood, property type, strategy, etc) but this is a helpful launching point.

I'd say you're generally looking anywhere left of Atlanta in terms of prices within your budget. Property managers should really be identified when identifying properties. Depending on your neighborhood and tenant profile local companies might outperform national brands or vice versa. Regional players can be a nice balance, but ultimately it still comes down to what'll work best for your tenants. 

I'm a REI Consultant and have helped clients with STRs.

Yes, the city of LA is very restrictive on STR operations. The "what if I sign a lease for myself" loophole isn't foolproof. You'll still have to prove "primary residency" for that unit. This is my go-to page I send clients when we're discussing opportunities in the city of LA https://planning.lacity.org/od.... 

I have seen investors leverage the "lease it to myself" loophole or operate off Airbnb in order to still execute an STR strategy but haven't personally helped anyone operate in that manner. If you do get in touch with the city I would advise you to learn more about the enforcement measures. Fines might not kill a deal, just make sure you understand the costs and underwrite accordingly.

Neighboring cities aren't always as strict. 

@Anitha Muraleedharan I've shared this "Market Matrix" I created in a few similar forum posts. This is based entirely on my personal experience (I've been a rei consultant and investor for 6 years). These are the markets I've helped clients purchase in and their motivation or rationale for choosing that market.  I'm not saying these are the only markets to consider or the actual consequence of investments. There's a lot of nuance to consider (neighborhood, condition, property type, etc) but this has usually been a helpful start for folks I've worked with. 

 Hey @Michael Junior! I threw this graphic together to help describe why investors are choosing to invest in specific markets. It is certainly NOT a perfect tool, but it's based on feedback from clients I've helped over the past 6 years. The markets you see here are the places where I've helped clients to buy, this is NOT a comprehensive list of every US market worth investing in. You'll notice I also don't have any breakdown for submarkets - this is vital when you're considering growth. Each of these metro areas will have submarkets that lead the way in growth or fall behind the market rate. You must understand your submarket well when choosing a market. 

Consider pre-fab ADUs - a cost-saving option compared to traditional construction. I had a client work with Cutting Edge Homes for his ADU in Sacramento (not sure whether or not the same company will go all the way down to Dublin) and it saved him about 20% on the construction costs.