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All Forum Posts by: Raquel L.

Raquel L. has started 11 posts and replied 67 times.

Post: New to BP (Los Angeles)

Raquel L.Posted
  • Investor
  • Los Angeles, CA
  • Posts 67
  • Votes 24

Ali: you're telling me? I'm used to fix and flips where I end up with a property that's worth double what I put into and has a nice COC of at least 10%!! I'm dying over here. I DO want to say that I don't factor in appreciation potential or equity gains from mortgage paydown-- I do a very simple COC calculation and if THAT'S good--so is all the rest (except the ever-unpredictable appreciation factor). Including the aforementioned, Austin jumps to 10.8%ROI, Atlanta jumps to 12.1%ROI, and Ft Myers is 7.7%ROI--this one is much lower because the houses are too cheap to use up FNMA loans on. If you finance them, the returns will obviously be higher.

Marco: :) Thank you... I definitely strive to continue my education at every turn.

I love the Indy market, but the appreciation is much, much slower than the other markets I'm looking at right now. I intend to do my "high risk" investing first, then pop over to the Indy market for some safe, solid cash flow.

I'd love to compare numbers... I run mine VERY conservative, and add quite a bit of fluff for protection--so what I see as 5%COC, most people see as 10-15%. I'm VERY conservative because I've seen it go the worst way possible in the past, and I prepare for that, while hoping for the best.. I'm usually VERY pleasantly surprised a year into a property. :) Message me if you'd like to talk more about the numbers... my favorite topic!

Post: New to BP (Los Angeles)

Raquel L.Posted
  • Investor
  • Los Angeles, CA
  • Posts 67
  • Votes 24

Hey Josh: I'm not much of a local to LA girl-- Cali has the big 'ol earthquake insurance issue (in my mind, if a big one comes along, the insurance companies quickly dissolve themselves and unless you've got a 100% loan, you're out a home--like Oklahoma, Florida, and Alabama with tornadoes & hurricanes).. and it's not a landlord-friendly state. I'm THINKING about finding a fixer to have something fun to do (I love flip-and-holds!)... but I haven't researched markets/submarkets yet. I'm in dire need of a very experienced mentor.

On being absentee: I have many properties in different states, and honestly, it's no different. When I go into a market, I first find 5 property managers, compare them, and narrow them down to 3. Of those 3, I get 5 investor references each & negotiate their agreement to suit my needs, then I pick the best of the 3 and keep the other two in my records as backups. I've never needed the backups because I did my homework on the best of the 3. I do the same thing with realtors. I also don't have a problem getting rid of someone that's stopped being proactive for me. One of my market realtors USED to be THE BEST--all the right connections with the city, on all the committees, etc... but all of the sudden, he doesn't answer his phone or email back as quickly. He no longer fits my criteria for a good agent. Deals can move fast, and I need a realtor who's on top of things. Same for a PM-- if they don't get back to me within 24 hours in this day and age, they're gone. It's all about how well you manage the people you hire to do your job. I have a property about 3 hours transport away, and I just get checks in the mail, no added expenses or fluff. Last time I went to drive by (without notice, of course), it was in better condition than when I bought it! Shrubs and flowers planted, etc. Hmmm!

Joseph: I can't say it's all hearts and flowers right now... I'm looking at a lot of turnkey properties with 5% COC all cash and 2% COC using leverage. The only reason I'm considering those properties in those markets is for an appreciation play, but believe me... I'm used to 10-15% COC with my fixers, so I'm having a hard time making these tough calls. I run my numbers conservatively, not based on made-up proformas. I'm still learning, and still searching for my ground floor--because as far as I can see with these 5% and 2%er's, I haven't found it. :0

Post: New to BP (Los Angeles)

Raquel L.Posted
  • Investor
  • Los Angeles, CA
  • Posts 67
  • Votes 24

Ali,

I was just reading your blog post about Out Of State Investing 101-- great job on the post!

LA- I live hopping back and forth between Silver Lake (hipster capital of the world...I'm sure you know. :P ) and West Hollywood. I just left Atlanta--I was looking at turnkeys there, now I'm in Fort Myers (more turnkeys) then off to Austin for non-turnkey flip-and-holds. Then back to LA. I'm looking for cash-flowing investments that I can hold long-term. My current goal is an equity play, so I'm looking in markets that are HOT and getting HOTTER, so I can swoop in on my equity in a few years and reinvest. OPTIMIZATION!

How about you? What are your current markets? What's you current goal?

Post: New to BP (Los Angeles)

Raquel L.Posted
  • Investor
  • Los Angeles, CA
  • Posts 67
  • Votes 24

On the book, and it's review about risk: EVERY investment is risky UNLESS you know what you're doing. You've got to get to know your investment, the risks involved, your risk tolerance, etc.

Hey Lynn: I AM in Austin on the 8th!! I will contact him for info-- and thank you so much for letting me know!

Hi Patrick: Thank you for the tip-- I fly back into LA on the 11th, so I'm not sure I'll be awake enough to make it, but I might drop by. Thank you for the info!

:)

Post: New to BP (Los Angeles)

Raquel L.Posted
  • Investor
  • Los Angeles, CA
  • Posts 67
  • Votes 24

The person that wrote that probably can't grasp the appreciation concept because they're only clinging to cash flow. I used to be that person, so I get it. Okay, free duplex story is about the power of leverage. That's it. Leveraging what you've got and using it to get several more instead of say, one fully paid off. Equity Happens talks about using the equity in your personal residence to fund your investments. Risky? Depends on the person. For me, I know that no matter what's going on in the world, I'm going to make money. I know that I am responsible and will always pay my bills. I also know how to be smart, and keep reserves on every property.

What I WILL say about Equity Happens is that you can't invest for appreciation in EVERY market, but you CAN find the appreciating markets and invest there using the principles in the book. What really HIT me about the book is this: I was looking for cash flow-- there's a chapter about cash flow versus appreciation. I ran the numbers on this myself. I abandoned my simple cash flow formula and have added the appreciation play. I still look for positive cash flow after expenses of at least $100/door, but I look for that in GROWTH markets now instead of slow and steady.

The book is all about leverage and appreciating markets-- which is EXACTLY what's happening now, in many markets. The days of hardcore cash flow were 2-3 years ago. Now, there's mild cash flow, so you have to invest where's there's growth and potential for appreciation. At least, for me-- I don't have the connections to buy the secret deals YET. ;)

Post: New to BP (Los Angeles)

Raquel L.Posted
  • Investor
  • Los Angeles, CA
  • Posts 67
  • Votes 24

Ned: Thank you for the tip! I'll do that.

Joshua: Thanks for the warm welcome! :)

Brandon: Yes, I love their podcast, except for the 3 million commercials per episode. :0 there's some good info on there. I also listen to the BP podcast & the Creating Wealth show. All are really good and chock full of info/news. :) you've GOT to read Equity Happens. Totally changed my perspective!!

Post: New to BP (Los Angeles)

Raquel L.Posted
  • Investor
  • Los Angeles, CA
  • Posts 67
  • Votes 24

Hello all, my name is Raquel-- I'm new to BP and looking to meet other like-minded investors/potential mentors/etc. I'm looking for cash flow deals in MANY states right now. I currently invest in SFH & 2-4 unit multis. If I was to say one thing about my investment style... I'd say it's like water, it adjusts to fit the market. :) I recently read Equity Happens and it turned my heavy cash-flow brain into a swirly-whirl of new ideas. I'm currently in Atlanta, then flying to Ft. Myers, FL, then to Austin, TX, and finally... back home to LA. If anyone knows of investment clubs or meetups in any of those states in the next 2 weeks, please let me know. I'd love to attend!! :)