All Forum Posts by: Cara B.

Well the question is framed for me to ask you...do you want to own commercial office buildings?

Cause yes I know folks who are trying to do that, but when it's asset backed and it fails-- it's now your problem. Do you want that problem?

If you're trying to get into an aggregated debt fund with the underlying assets being commercial real estate then no i do not know any. I know of syndications but would not recommend any.

It's definitely an "opportunity", but if everyone defines it as one then it'll lose it's steam as soon as momentum carries the first to it. So unless you're willing to be first and if you are, you need to come deep. Not $30, 40, or 50 MM but in the Bs, then personally i wouldn't be first. You could also just show bids that are deep for your normal commercial real estate-- you won't be considered cheeky, they'll listen right now.

 If you're trying to fund itself yourself for smaller commercial real estate, that's your choice but I'd take ags, minerals, energy, infra over that anyday of the week. The barrier of entry would be somewhat similar financially. 

Ah, I love this question. I lived in LA for 17 years and miss it like the dickens (except for the weather!!) because I always moved to have a short commute.🥰

If I had unlimited capital to invest in LA I would invest in older multifamily buildings in Hollywood/WeHo along Franklin Ave, Hollywood Blvd, or Fountain Ave between La Brea and La Cienega. If I could buy and hold a Courtyard District Historical Apartment Building right there on the north side of Fountain right before one spills over down La Cienega into WeHo it would be heaven for me.

Also, you can get a lot of location use out of your exteriors because you would have both the "Old Hollywood" and "Hip Youngster Who Found a Cool Historical Place to Live" looks for film and TV. Art Directors love that neighborhood.

Thanks for reminding me of my most favorite drive in the world! As Bette Davis says, "Always take Fountain!"

Define unlimited money. $5M in Charleston is different than Los Angeles. Big diff between $10 and 20 MM in Los Angeles, too. To be a real player in REI, you'll need to come in 50MM ++ and if you're at that level you focus on other things first.

Assuming you have a budget of say $50MM+, I go after agriculture land, land with mineral rights and oil rights and ditch REI. If you've already done that or have a smaller budget like sub $30MM, I go to the best neighborhoods in the best cities, and buy the most distressed houses.I flip the one's in states where it's hard to manage tenants or re-fi into STR, re-fi out with 1-1.2 DSCR in areas where managing them is convenient in landlord friendly states. When you buy deep and try to reno, have a RE attorney besides you to walk through how to form teams and construct contracts to people work for you and you don't get tied up. Get that outlined so you're able to play ball in the field and not get played.

I invest on the side in private & public debt, take the interest payouts and buy into private & public equity and more RE. Keep that money flipping, keep tax deductions high, and keep buying primo real estate and zero focus on the gutter **** in Ohio or what not. 

Start with something either turnkey or light value-add, so you can start forming your boots on the ground team with less pressure and risk. Once you feel you've built a strong team with your first property, I would start buying more aggressively and taking on bigger projects.

I suggest reading this BP article on the core 4.

https://www.biggerpockets.com/blog/core-four-real-estate-team

Normally I tell people to start small.  If you have unlimited funds then the following. 

Pick some of the best older or newer neighborhoods in LA.. Look for the nastiest house in the neighborhoods. Start making low offers with 3 day windows. Look for something that is value add. Large lot you can add an ADU, more parking, pool or take the pool out, add mother in law unit, etc. Plus Reno the house itself.

This takes risk off the table.  
1.  Location location is guaranteed to make resale easier.

2.  Should be able to find good general contractors.

3.  Guaranteed value increase due to being the worst house to now you are the newest house in the neighborhood. 

4. Landscaping is probably outdated so easy upsale.  

5.  If you can live in it.  Tax free on the gains if your primary residence for 2 out of 5 years.  Plus your rent adds to the cash flow and if you can rent out some rooms.