All Forum Posts by: Bryan Galaz

HELOC. Then invest out-of-state. At my Meetups I show investors where and how to invest out of state (specifically when being from California). You'll need to start learning for sure. Find a Meetup near you or if you are willing to drive up to the Pasadena area DM me.

Hey Bryan, I applaud you for wanting to put your funds to work.

And, I 💯 agree that real estate is likely the best path forward.

My question is this: How certain are you that the best way for you to "get into real estate investing" is as an active investor?

Finding a property, negotiating a deal, securing a tenant, and managing a rental is seriously hard work!

And, I'm willing to bet that most landlords don't do much better than a 10% annual return on their funds. (Most probably do FAR worse...)

By contrast, private lenders are currently earning about 12% annualized interest on their money.

And, getting exactly ZERO calls at 2am from unhappy tenants!

Note: I'm not judging. I've been a rental property investor for 25 years.

I'm just wondering if you're aware of RE investment alternatives that might better suit your situation. 

Bryan, this is exactly how I got started.

I used some cash savings but largely leaned on my HELOC. The key here is to have a plan to pay that loan back.

I did this by utilizing the typical BRRRR method on homes in Detroit. I'd find off-market deals, do some cosmetic updates, and then refinance. All proceeds from the refi would go back to paying the HELOC.

Rinse/repeat...

My advice would be to start slow. If it goes well and you can stomach it, then scale up. And don't expect you'll get 100% of your capital out on each deal. It can definitely happen, but if you're leaving a bit of cash in each one that's much better than putting 25% down every time.

If you don't have a value-add strategy I don't see the point in using a HELOC. The whole idea is to use that money short-term.

@Bryan Galaz you can start by getting a HELOC (Farmers and Merchants Bank, Lake Forest) to see how much you can borrow. Before you pull the trigger on anything I would get some training or find a mentor in your area willing to show you the ropes. If you're looking for a rental in California, that would be a big ask for something that can cashflow. You may need to go out of state, which has its own problems. Check out some local meetup groups in your area and start learning.

Good Investing...