All Forum Posts by: Account Closed

Multi family might be a better investment in Los Angeles but because prices are so high, I'm finding cap rates of 2-4%. I'm not sure if those types of returns are worth the effort. Appreciation is a big factor in the LA market but it seems like properties are overvalued right now. Any thoughts?

Hello Matthew, I'm a banker in SoCal and many of our clients utilize LLCs for their RE Holding Companies. You can use Legalzoom to set up an LLC and you can use lawyers to set up LLCs as well. Sometimes accountants will set them up for their clients but I'd recommended using an RE Lawyer. Hope this helps! -Kysha

Hello @Andrew Kim and welcome to Bigger Pockets,

My boyfriend also recently graduated from law school as a step to pursue RE Investing. He is now a commercial RE agent in downtown LA at a boutique firm which is now expanding. If you're interested, I'll connect you two. Best of luck! 

Hello Erin!

Welcome to BP and great job on convincing yourself that you can do this! As one of the BP guest speakers once said, you're either paying your own mortgage or someone else's mortgage.

House hacking is a great option because you'll still be occupying the property so you'll qualify for consumer mortgage which, depending on the type of consumer loan you get, has a lower down payment than a commercial conventional loan. In the long run, it'll be a great opportunity to build equity in property and lower your long-term living expenses.

I appreciate you sharing your concern. I come from Arkansas, where houses can be purchased for $50K-$150K, so these LA numbers initially scared me out of my socks. Good luck on your first purchase and let me know if you need any assistance with current or future commercial lending.

-Kysha Joli