All Forum Posts by: Danny Smith

Hi Chris (no offense but going to assume you go by Chris),

First of all, as much of an inevitable nightmare competing for SFRs can be right now, be thankful that the lower end homes you have been looking at are 2-300k instead of 6-800k like they are in Socal. It could be more expensive, lol. 

With that said, there is always opportunities to buy great deals in real estate. I am sure you are familiar with this option, many of my CA buyers have had success doing variations of house hacks as of late. Even if you were to simply buy a duplex instead of SFR, you would be able to qualify for much more (due to the rental income) and these duplexes are often less competitive. Even if you were to do a "failed" house hack, where you rent out the other unit(s) and come out of pocket say $1000 per month, that is still much better than coming in with your current $3000-$3500 SFR payment. Even if you were losing money, you would be saving huge on your housing payment, while building equity and owning a much larger, appreciating asset with little down.

Again, I am guessing you are familiar with this option, but just wanted to share what has been working for my buyers here in a tough market. Good luck man!

Hi Sarp,

Of course, you want to look for all of the economic factors that contribute to people moving into where you are investing, which of course means more money in your pocket down the line.

With that said, it is so much more important to simply pick a location, and go all in on it. What I mean is don't get too caught up in the small differences in the numbers, and just pick one. Once you do, focus on building a great team, knowing the market better than anyone else, and finding great people that will help you find deals in the area. Developing your real estate skills, building a team, getting crystal clear on what you are trying to accomplish and what your goal is, and most importantly taking daily action will lead you to success in any market you end up deciding on.

Hi Prell,

I am a 20 year old weighing out the options of staying in CA, vs going out of state like you are discussing. I was wondering if you have bought any real estate in the LA area, and why you are set of going out of state? thanks

Yo Issac,

I am in your same boat graduating college in one year, hearing all of the people signaling the end of the world, market collapses, and hyperinflation. The truth is you can and will achieve your dreams if you take action towards them consistently, and no market conditions will be able to stop that unless America falls apart or becomes underwater. 

If you buy good deals consistently in every market and play the get rich slow scheme, nothing will stop you over the long run. There will also always be creative ways to finance deals in any market. Trust me, I can't help but have the same fears you do especially since I am trying to start buying real estate in the near future. But real estate is inevitably cyclical, and if you don't get caught up in emotional buying/selling like the masses and go the patient/consistent route, you will be a baller millionaire in no time. Good luck man

Everyone's heard the legend himself Warren Buffet's advice, no matter the asset class. Buy low, sell high, and don't follow the sheep or what everyone else is doing. In today's market, it seems pretty obvious that there are just about literally a million times more buyers than sellers, yet everyone continues to buy. Sure, maybe interest rates are low, sure people may be scared to list their house because of COVID, and maybe even people have saved up over the economic boom of the last decade.

Whatever the reason is, we all see what's going on in the market, and it inevitably can't go on forever. If I have learned anything from long term investors, it would be that now would not be the time to buy. However, it is also very possible that this could continue on for a few more years, and I have a fear of missing out on that. 

I do understand that investing consistently in any market with the long term, "get rich slow" mindset is the best way to go, but I can't help but fear a recession as I enter my investing career. Would love to hear some others thoughts on this who have more experience than me?

My name is Danny Smith. I started working in property management with my dad when I was 17, and did not have the slightest clue what was going on or what I was doing. I realized two things, that I loved selling people (tenants at the time) property, and that I wanted no part of property management because we were always being yelled at by both the tenant and the landlord. Then I was handed a copy of "Rental Property Investing," with a tall, skinny, slightly awkward looking at the time (no offense), long red bearded guy on the cover. Mr. Brandon Turner got me hooked on real estate immediately, and I loved the message he conveyed that you don't have to be the smartest person at all, and that anyone can succeed in real estate with the long term persistence to do so. This worked out well for me because I start many microwave fires, fall down the stairs often, and have a worse sense of direction than a blind person, but I know I have the drive, work ethic, and tenacity to become extremely successful. I quickly became passionate about real estate, read as many books as possible, listened to as many BP podcasts as I could, and got my license as soon as I could. I realized that real estate investors, in general, were happier, loved what they did, and made more money than people who had a traditional 9-5 job. 

Even though I am finishing up college at Cal State Long Beach, I know for a fact that real estate is what I want to do for the rest of my life. My goal is to own over 10,000 units and gain financial freedom through real estate, and teach/inspire as many people as possible to do the same. My investing plan is to house hack in California, begin investing out of state (thinking Arizona as of now) in single family homes, and then transition to multiple units, multifamily, and syndications. 

The goal of this post is to find like minded people who feel the same way I do about real estate. Specifically, I am looking to connect with people looking to do anything real estate related in Southern California, for now. Also, I would love to connect with Arizona investors/agents. As of now, I think Tucson is a good long term market, but I am open to suggestions on other markets that will make for great long term investments. 

Please reach out to me anytime, thanks :)