All Forum Posts by: Ewa Reza

The seller doesn't want to deal with these tenants. Buying people out is a good option if they are not knowledgeable about their rights and I doubt these guys are. One of the units is 3 bedroom house that the tenant occupies for over 20 years and is paying $386 a month (average price in this area is $2000+. Relocation fee for this kind of tenant is almost $20K. Let's say I offer them $30K. They would be crazy to take it. I know I wouldn't :(

That's what I'm worried about and that's why I'm trying to educate myself on Ellis Act...

I'm looking to purchase a 4 unit property in Los Angeles (rent control). Tenants are paying $300-$400 for 2-3 bedroom apartments. Crazy. I would obviously start with cash for keys strategy first but in the worse case scenario can I evict them based on Ord. No. 177,901 Eff. 9/29/06. where the landlord seeks to recover possession in order to remove the rental unit permanently from rental housing use? 

What happens when I sell the property? Can new owner bring these units back on rental market?

@Miguel Garcia North East LA

Does anybody know where can I get bandit signs in Los Angeles? I'm looking for something under $2 a piece.

@Account Closed you can purchase several homes with FHA loan. The questions is only the amount of down payment. Only if the property is owner occupied you'll be able to do 3.5% down.

If I were you I'd get the house for your parents as owner occupied with FHA 3.5% down and refinance it to conventional loan in 2 years or so. You may be able to refinance even sooner if the real estate will continue appreciating with the current speed. And then you'll be able to buy another property (for yourself) using 3.5% down FHA mortgage.

And as long as you're paying on time your credit core not only won't get hurt but also  should increase greatly.

I'd buy in Watts. The numbers are right I'd buy anywhere :)

How many yellow letters have you sent to get these 10 responses (offers)?

What are you trying to do @Jorvon Smith ? You're looking for  deal to flip or wholesale?

I'm struggling in LA too. The market is nothing short of crazy right now. I submitted an offer on a property recently that had 60 other offers after one week of being on the market! Wholesalers send me deals every day but:

a) they underestimate the rehab cost

b) they're estimate ARV way way high usually based on a single comp. Crazy.

I started looking into Arizona market - Scottsdale and Phoenix. No that far to drive and rehab costs seem cheaper.

@Amanda Cadena first off... congrats on starting investing at your age! I'm gonna keep it short... wholesaling is a great way to start. Especially if you don't have the cash on hand. Focus on that. Don't get side tracked. Believe me it's easy as real estate gives you so many different options to invest. Forget about expensive courses and mentorship. Wholesaling it's not that difficult. All you need to do is find distressed  properties. It's all marketing and talking to people.

You can set up an LLC if you want but that won't help you get the properties in contract. Distressed properties have distressed owners. They want to talk to a person, somebody who can understand their situation and help them out, not a heartless business (LLC). That's why I would advise against placing your LLC name on business cards.

Forget about website. It's ok if you have it but that again won't help you much. I'm in Los Angeles too. I talk to people who own their homes for 20-30 years. These people won't go to your website to get more info. They often don't want to even talk on the phone. Instead of talking on the phone for hours try to make appointment as soon as possible. Friendly face / in person contact is the best way to come up with win-win solution.

Read a few books on wholesaling to get an idea how to structure a deal and put things on the paper. You'll find plenty of marketing ideas in there. Pick 3-4 of them and start them simultaneously. Most importantly do all these things as soon as possible. Don't wait around for months or years to get things going. Read. Read. Read. Bigger Pockets is a great resource.  Don't make lack of knowledge stop you from moving forward. You'll learn as you go.

I guess I didn't make it that short... :P

Good luck Amanda!

I'm a Realtor and an investor, so from my perspective it doesn't matter if the agent is experienced in investing or not. I actually think a new agent will work harder for you as he/she doesn't have that many clients and they are more eager to learn.

And the agent should definitely do the numbers for you!

The key is to sit down with your agent, go over all the things you want him or her focus on and create an excel spreadsheet together. This way preliminary evaluation won't take much time for your agent and you'll be only getting the deals that pass that first stage, so you don't waste your time.

And never work with multiple agents in the same area. It's not only unethical but als bad for business in a long run.