All Forum Posts by: Daniel Y.

 No, I usually go up there for jiu-jitsu. However, since all my training partners are around that area, they give me an idea of the surrounding area. I always exit of Telegraph, so I have a bit of an idea of that area without asking.

Welcome to BP! I am in OC, but I go up to Santa Fe Springs a few times a month. Feel free to ask me any questions.

Thank you for the reply. That is great on your end. Unfortunately, I am looking out of state so I don't have that exact opportunity as you.

Okay, so I don't have too much experience of that area personally. However, I see the area is close to USC, and with all the friends I had that went to USC, they all had the same opinion. The USC campus is great, but once you go off campus it is a different environment. I know there a decent amount of agents on here in that area, hopefully one can help you give you more insight. If not, I am in the process of getting my real estate license and once I get it, I can tap into the network of offices in that area and help you find an agent more knowledgeable of that area and investor-minded. Feel free to contact me any time and I'll see what I can do for you. Good luck with everything.

I heard Bakersfield is a good place, I hear it is slowly growing in population and especially the type of jobs. They have a lot of plants there, but keep in mind with advancement in technology, the positions are not blue collar jobs you are thinking about in the 1990's or earlier. They are looking for engineers to run and maintain their automated machinery. It also depends on the neighborhood class type and cap rate you are looking for, they could be some properties in OC as well.

Hi @Mabel L., where in South LA are you looking specifically? So it sounds like you are putting a bit more emphasis on cash flow over appreciation, which is great because I lean more towards that strategy as well. However, I am sure you not want a low C or D class neighbor that would produce high turnover, headache, and higher overall cost (keep in mind you are in CA, that favors tenants pretty heavily compared to a lot of other states).

@Matt A.

Hi Matt,

Is that from a local private lender or a bank that you have a good relationship with? I've just started my start for one in with a property in Texas and the best of what I am finding so far are 10 yr fixed/30 yr amor at 4.5%. Did you have to buy any points down? If not, I would gladly trade 0.1 of a point for 5 extra years.

@Diane G.

It would be defined the same way that all net worth is defined. The value of all your assets minus all debt. The Fannie Mae 30/30 yrs commercial loan does mention a separate requirement of having 9 months P&I reserve, so that is their liquid requirement.

Diane,

I am in the process of searching and trying to acquire a commercial loan. Some things to consider, after the whole housing bubble, the gov't made everyone they had control over tighten up their policies. That's why almost no one can get a loan after 2008 and cash was king. Are there 30 yr fix/30 yr amor? Yes, offer by Fannie Mae. Is it easy to get? No. If you want to acquire a property out-of-state or far away (which is the case for us, Californians), then you must have and show 2 years of multi-family ownership and experience. On top of that, the loan you get, you must have the same net worth equal to the loan amount. So if a property is 1.3 mil, you have to have a net worth of 1.3 mil for them to consider you. Which kills the point of leveraging you money when you have a small amount to start with, but it's a good protection for Fannie Mae and the secondary market.

So my point is you shouldn't be too scared because the gov't has put in place a lot of things to prevent a crash like 2008 for our generation, there will still be recessions but probably not as bad as 2008. Second, you shouldn't be scared of commercial because if you are investing as an individual, the requirements from institutions or the higher interest rate from private money wiping out your returns would prevent you from even entering into commercial real estate.

Hi Andrew,

I am in the process of getting my real estate license, however I have been an investor long before I decided to get my license. So this is my opinion from what I've learn and depending on the local market, some markets might operation slightly different than my opinion because of different factors. 

I personally reach out to wholesalers and try to learn a bit about wholesaling myself to know how that side operates. An agent, especially an investor friendly agent with an investor network, would be a great asset to help you turnover your inventory much faster. Sure, you don't have too much capital tied up because you didn't buy the house, but you don't make any money until the home is assigned and closed, right? So a good agent will get that property to their network, so you get paid. 

Just don't try to find agents, even investor friendly agents, to get you a property at a wholesaling discount off of the MLS. It's not impossible, just very very difficult. Once there is an agent attached to a property with a contract, it is the agent's duty to get the better offer for their client. So as a listing agent, the highest price possible or what's best for their client. And unless that agent is extremely incompetent, there is no reason they cannot get an offer better than the wholesaling number that would make sense for you. On the other hand, a buyer's agent will be finding the lowest price for the value or potential value. With your wholesaling price, it should be relatively quick and easy if they are have strong network.

You will find a lot of threads on BP where wholesalers complain about agents not providing great price and vice versa where wholesalers lowball too much, and it is only because they are just playing the game wrong.

This is just the brief summary of my thoughts, so hope it gives you some insight. Best of luck to you.