All Forum Posts by: Christopher Boshae

Does anybody have any recommendations for credit unions that lend for investment properties? Looking for some great rates!

@Jose Gutierrez Love it!! Now that's how you find a deal in Los Angeles!

Definitely!! The main reason being that blockchain technology will have significant changes in how contracts work in the future. "Smart Contracts" will live on blockchains and be executed through transactions based on an exchange of cryptocurrency. Cryptocurrency is just a storage of value, that right now is super volatile but I expect in the future more of them will stabilize as they increase in value. However, the ramifications will not be in using cryptocurrency, but "Smart Contracts" to exchange properties.

Checkout these resources for more of an explanation on "Smart Contracts":

Blockchain

Smart Contracts

@Asher Leibowitz Before even starting to look at neighborhoods, I would start with what do you want out of this investment your planning to make. Then afterwards start looking for neighborhoods that will give you those opportunities. You can narrow it down to three categories to start:

- High Appreciation / Low Cash flow: Gentrifying neighborhoods

- Low Appreciation / High Cashflow: Creative niches such as college housing or military housing where +++bedrooms = $$$

- High Appreciation / High Cashflow: Buy significantly below market + renovate + rent

Note: Examples above might overlap

For the most part appreciation will always be greater than cashflow, but you will have to delay gratification and there is always the risk of trying to predict the future. However, for the most part appreciation in LA is steady. In addition, in certain investments you might be a bit negative, but you can account for rents to rise which would lead to a positive scenario in a couple years.

@Rick Albert @Jonathan Taylor @Christopher J Driscoll appreciate the replies! Yeah I'm finding that ADU's are probably one of the best ways to bring a property up to a net positive, when accounting for expenses.

@Steven Zamorano @Michael Lazzaro I totally understand your frustrations. However, as I'm learning more about the LA market and different strategies, there are ways to have a solid LA investment. It just requires some creativity to "make" the deal. This is what I'm noticing:

1. LA is an appreciation market very little cash flow or no cash flow, which at first seems scary but is actually advantageous
2. In the long run, appreciation will always surpass cash flow. Having cash on hand is fun, but delaying gratification might prove to be worth it. You can always 1031 exchange the property and purchase a property that cash flows higher.
3. At the beginning of house hacking you might not be net positive when accounting for capex + maintenance + vacancy. However, you can plan accordingly(force appreciation + increase rents) to make sure the property pay's itself with expenses when you leave

@Eric Chiang I totally get your struggle! Yeah, many times the numbers don't work. In general, I am finding that LA requires some creativity to make money in RE.

@Mark De sagun That channel is super helpful! Yeah, I've changed my expectations quite a bit. However, a must for me is that is should cash flow when I move out.

@Su Pak @Aaron K. Yeah it seems like I’m order to succeed in LA you have to “make your deal” instead of finding one.

@Ola Dantis Your totally right! Wise words!