All Forum Posts by: Cecil Shannon

Hi Cecil,

We're based in Redding as well and operate Authority Property Management. In addition to managing a diverse portfolio of rental properties, we've successfully flipped several properties in recent years. Bonnie is spot on—you don't always need traditional bank financing for your investments. Our area has a good selection of hard money lenders, and every now and then, you might find an owner willing to carry the loan, often at attractive rates. Additionally, we have authored over two hundred blog posts on our website, covering a wide range of topics, many of which focus specifically on investing in Redding, CA.

 Welcome to BP! I would dive straight in. I started investing in 2017 in Ohio and I am happy I did not wait

Cecil- I believe California does have some great opportunities. However, these properties won't be low hanging fruit. You will have to do a little more research, dig a little deeper and turn a few more stones. You may also have to get your "hands dirty" in order to make these properties cash flow. Just last year I expanded my property portfolio in California which now includes Orange, Los Angeles, Riverside and Kern counties. Depending on where the property is situated and the "local market conditions" I have them rented out as either long term, mid-term or short term. Some cash flow more than others, but they all cash flow pretty well. I don't agree with all of the local laws and politics in California, but its still a great place to invest. Property appreciation is second to none and rents always go up here. You get the best of both worlds.

Since you mentioned that you are getting started, I highly suggest you house-hack (this is how I got started in Costa Mesa, Orange County). I did this for a few years and then I started to scale. If I did it, and I'm no one special, anyone can do it. You'll have to make some sacrifices, put in some work but I promise that its all worth it in the end. 

Becareful with BRRRR-ing out of state. If you plan to be there for the entire rehab process, then go for it. But if you plan to travel back and forth, just make sure you that the people you have working on your property are highly reputable and trustworthy. Establish some "safeguards" to keep them honest and consistently check their work. I had a project bte me in the butt because I wasn't more diligent in "checking in" on the contractor.

I hope this helps and good luck in your journey!

 Shasta Lake has been a good place for rentals. The City has done a lot of work to clean itself up in recent years so you will find not only a lot of rehabbed houses, but businesses and store front rehabs, too. It's slightly less expensive than Redding but a very short commute so it's a great place for starter homes, too.

There is a property in Shasta lake that has some potential. I am going to run some numbers tonight and see though. 

Yeah they have done a super good job up here and the local projects might make the prices go up some but it seems like a decent place for some long term rentals.

Hi Cecil- We are also in Shasta County. We invest locally and enjoy being involved in the projects. A lot of conversations between you and your partner need to happen before you take the leap into investing. Along with some serious conversations with yourself. How involved do you want to be? What are you looking for equity or cashflow? Are you holding or flipping? and so much more. 

I saw a post not long ago about a meet up in Shasta County not sure if they will be doing more but it’s a good place to start. 

You would probably need to use DSCR financing but i'd say it's better to start now then later. Your first investment will be a huge learning experience. I know a lot of investors from California are investing OOS in Ohio. The Ohio market is one of the top markets to invest in from a distance.

Hey Cecil, if you have the capital to operate locally, and it fits your goals to do so, I highly recommend doing that.

Congrats on securing your primary though. You're always going to wish you started earlier, so it's best to start today!

Hi, Cecil - we're in Shasta County, too, and have properties in Redding and Shasta Lake. As you know, this part of CA is nothing like what most people associate CA with. There are still a lot of opportunities for BRRRRs so I'd encourage you to keep your eyes open. I have a wholesaler I trust who I can put you in touch with if you'd like. You don't need a conventional bank to buy a property. You might consider hard money for the initial purchase or going with a DSCR type lender if you find something that is more turnkey.

@Cecil Shannon
If you can invest locally I would do that, but if the numbers don't make sense and the price points exceed what is doable for you then I would look out of state in another market where you can achieve what you are looking for. I would start by checking out the Ohio markets in the mid-west if investing out of state is the route you take.