All Forum Posts by: Account Closed

@Roy N. Thanks for the quick response! I didn't even think about the SEC aspect so I'm glad you brought this up.

If I was to start a business as the sole member and "partner" with others on a deal-to-deal basis for extra capital do you still need to draft an operational agreement or is there another type of contract used for that?

It seems like this is a better route rather than having a multiple partnership business entity in which the partners would be involved in every deal. 

I currently work a W-2 job with several other coworkers who are interested in real estate investing. My goal is to figure out the best way to structure a business that includes anywhere from 2 to 5 members. Ideally, I would like to start and run my own business. However, since I am new to real estate investing and have limited capital, investing with others seems like a good (best?) option. Also, I should mention I live in CA. I don't know if that'll make a difference as far as business laws are concerned.

Is it better to form my own LLC and have my coworkers (investors) invest in the company or should a business entity be formed that includes all 2-5 members, each with equal share in the company?

Please feel free to ask any questions if my situation is unclear.

Thanks guys!

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@Daniel Rosell As a new investor, I would prefer to invest in SFR's that require medium to a low level amount of rehab and could still generate cash flow if the property doesn't sell after the rehab. For me it's difficult to define my comfort level because I simply have not had the experience to really find my "sweet spot" in the market. However, I know what I would not be comfortable with. I wouldn't want to invest in areas with high crime rate (obviously), Section 8 housing, or properties with large amount of rehab required such as foundational damage.

Also, I see that your occupation is listed as a RE Broker. Is it worth getting licensed in California if you want to be an investor. From what I've read, being a licensed agent you need to work for a broker to perform RE activities. And in order to be a broker you need to have at least 2 years of experience. I was hoping you could offer your thoughts on the matter?

@Kevin Peguero @Jo-Ann Lapin Thanks for the info!

@Daniel Rosell I'm fairly new to the area, I relocated for work but from what I've heard West Lancaster/Palmdale and Quartz Hill are the best areas to invest. Can you elaborate on which neighborhoods you consider B,C, and D areas?

Greetings Everyone,

I am new to the real estate investing business and in search of some information.

I currently live in the Antelope Valley in Palmdale, CA. Since I am new, I do not have excess capital to purchase expensive properties like those seen closer to LA. I have been looking at areas such as Lancaster, Palmdale, Santa Clarita/Valencia, even some properties in the Apple Valley and Palm Springs area.

My goal is to purchase rather small single family residences (2-4 bd/1-3 ba) for something in the range of $100-200k. Depending on the market, I would either like to flip the properties or as a back up strategy rent them out to generate cash flow.

Where does it makes the most sense to implement my business strategy?

I greatly appreciate the advice!