All Forum Posts by: Garrett Crosby

Welcome to the investor family! Now the fun (and hard part begins). Here's my suggestions:

1. Read. Learn. Invest in yourself. In market's like these, sometimes it's smart to stay cash heavy. 

2. Partner. Find an agent who is investor-friendly.

3. Do due diligence (run your numbers, find deals, analyze properties)

4. Build routines (no different than dieting, working out, etc.)

5. Pull the trigger.

6. Learn from your mistakes.

7. Make better decisions.

8. Continue to leverage and build your generational, wealth-building portfolio!

I wish I had been so young when I decided to jump into this. Here to always help or lend an ear if you need it! :) Cheers!

Hey @Jonathan Rivera!

I absolutely love my out of state situation. About 6 years ago I started developing relationships with agents and prospecting out of state markets to find the best possible deals and cash flow. Many mistakes later I landed in North Carolina and developed some great relationships with a group of different people (agents, lenders, contractors, property managers, etc.) Since then I’ve bought a number of properties. I started with turnkey buy and holds and then moved to distressed buy and hold fixers. As I built relationships and confidence, I started flipping properties as well. 

I personally love my turnkey properties. They cashflow about 400-600 each for me. I picked a location that is nearly economy-proof since it predominantly houses military families. And best of all, because of this reason, I’ve never had an issue with collecting rents or vacancies thanks to the location.

It really comes down to the location, the team you assemble and your research. 

Happy to talk to you if you have any questions about this! :) 

In most cases, if this is a permitted addition, the answer is a resounding yes. In addition to what has already been said in regards to the rental income it can make you, another important element to consider is the added equity in the property. A permitted addition of a guest house adds incredible desire among many home buyers (and investors). When the time to sell comes along, you will see your property get snatched up with multiple offers compared to similar properties that lack the permitted ADU addition.

If the numbers make sense and it doesn’t put you in a bad place financially, I say go for it! :) 

Hey @Mike Mizwicki! Fellow team leader agent here in LA! Really excited to hear about you looking to start the journey of REI. I've invested all over, but have found some really great niches out of state. If you ever want to connect, I'd be happy to talk about my personal journey in real estate investing - but in the meantime I'll share my personal tips.

#1 Since you're an agent out here, house hacking could work out nicely if you can find the right deal. Right out the gate, you could theoretically apply your commissions towards the down payment or towards rehabbing a property to rent it out for top dollar. 

#2 If you find that STR's are your passion, I recommend really studying up on CA laws and regulations on these. CC&R's locally are making it harder and harder, especially in LA County. No impossible at all, but I find that a lot of investors I work with locally tend to run into issues on this when we dive deeper.

#3 Personally, when I was starting out, I invested out of state. I built a team of a trusted broker, lender, contractor and property manager that have led to a lot of great cash flow on long term buy and holds as well as flips. 

The bottom line: keep studying, look for deals, build your team and keep networking. Feel free to send me a message if you want to connect as well. :) 

Lot's of great house hack opportunities in LA/Ventura County. I have several investors in successful house hacks right now. One of which just moved into his next home and is renting the first one completely out. Not impossible to find at all - but like anything, it takes patience, intentionality and proper partnerships with someone who understands what to look for to be successful. 

Honestly, i would look for non-updated livable homes with rooms (and convertible spaces ie: garages, lofts, etc.) that have been on the market for a while. That typically yields a better purchase price that immediately has more equity upside as you modernize the property while house hacking it. :) 

Hi @Trent Barga - thanks for posting this here. I think there are some good points brought up in some of these comments. One thing I would caution against (because I have done it myself) is when I get so close to the finish line after doing so much work, I start "wanting to make it work" despite numbers and new data suggesting otherwise. I can't make the decision for you, but I would suggest the following:

1. If you haven't already, take a day to breathe and then dedicate some time to analyze some other properties. 

2. Check the comps in the area for this particular property. Are you paying top dollar given the condition? 

3. If you do get it under contract, do NOT waive any contingencies. Get a real quote from a contractor and a home inspection during the investigation contingency period so you know how much work you are looking at. 

4. Make sure you don't walk away without any cash in the bank. If you do decide to pull the trigger, try to make sure you have 5-10% of the purchase price in the bank to handle "whatever comes up". Oftentimes, there are surprises lurking that don't show up until after we record...

All of that being said, I recognize that B+/A neighborhoods prove to be super-safe investments given the tenants that usually are able to afford the units. Take your time on this, do your due diligence, and don't force anything. Better to start over than become cash poor in a poor investment. :) 

Here if you need anything along the way! 

Not seeing much change here in Los Angeles. Investors are constantly jumping on multifamilies when the numbers make sense. So there's a lot of the same. If they are priced to high or the rents are too low and/or the seller refuses to vacate, the units sit on the market for a while. If they are priced right and/or vacant, you are seeing them get picked off fairly quickly.

One thing I'm seeing a lot more success with (and actually did a couple of times with a few clients lately) has been getting FHA buyers into multifamilies to house hack. There are some really creative ways you can write offers to entice sellers to handle evictions and/or repairs required by the FHA appraisal.

Pretty awesome for those looking to get into real estate right now. 

Hi @Eduardo Nieto - this is a great question. 

Also nice to see another agent out here in CA! :) So I have a couple thoughts on this. For the sake of also not getting my post removed by a moderator for being "self-advertising" I will say that you are welcome to look me up on social media or follow links in my profile to check out some of the things I do from a social media advertising standpoint.

I try to make it routine to brand my content, my team, etc. while also focusing on providing value. I care so much less about trying to create content that feels "sales-sy" but instead I focus on real-world education to empower people who are looking to invest, buy or sell. I find that oftentimes, my social media acts as a confirmation tool when I do get referrals. People "look me up" and my social media presence confirms my "qualifications" in a way. Haha

In addition to that, I do some focused mailers by using tools like propstream and ballpoint marketing. Happy to share some of the lists I do if you want to reach out. :) I run a team in CA, so I do my best to help those who are a part of it to find a good rhythm to working their sphere since we all have different strengths and weaknesses. Ultimately, our sphere of influence is going to be our best platform for marketing. Following up and learning how to market yourself within your SOI are the best tools you have to be successful. Happy to chat more with you if you ever want to connect. 

Cheers!

Hi @Christina V. - so exciting to get started with this. I'm an agent in CA that started out as an investor. I invest out of state and also within CA as well. There are lots of great options - but it just comes down to finding the ones that work within the numbers and strategy you are looking to implement. Happy to help or provide any guidance on your journey! 

Best of luck! 

 Hi Kenneth,

I'm local to this area. You have some pretty good numbers. Frankly, I would want to see it in person before saying for sure - but this is really good on paper. Happy to help any way I can since we live so close together. :) Feel free tor each out if you need support!

Cheers!

Garrett