All Forum Posts by: Keith Washington

So my real estate story is simple. I jumped into wholsaling and found enough success in it to quit my W2.

I lead a minimal lifestyle. One where I look after my grandparents while they help me to avoid LA rents and crazy mortgages. 

This works for as I'm single and I dont have children. 

But my goal is to retire through real estate investing and I believe the next step would be house hacking a multifamily.

The tricky part is that I would like to stay in LA ...and because I'm not working a 9 to 5, I dont think I would qualify for an FHA and a 203K loan. [Especially during these times]

Do private lenders lend on multi families in LA? 

And if you're a house hacker who now owns a 4 unit in Los Angeles...I would love to hear your story. 

What part of town is ideal, how did you acquired the loan and what did the numbers look like including cash flow.

I would imagine that most responses would have me move to the midwest, but my grandfather has dementia so staying here is essential for now.

Your thoughts and responses are greatly appreciated. 

Thanks

Hi Rod Crawford - Yes, the $1,000 was used to secure the contract which is referred to as an EMD (Earnest Money Deposit)

This amount varies from deal to deal. 

When working with a most sellers, the earnest money deposit can range from $100 to $500. In some cases, I've heard the EMD being as low as $10.

But when working with an agent, you could expect to pay a little more...just to make sure that you're serious about the deal. 

I hope this helps. If you have any more questions, I'm happy to assist. 

Thanks

Keith 

Hi @demarcuscrump -

Yes. $417K was the purchase price and the lead came from a realtor friend. 

Along with the acquisition help as mentioned in the previous message, its also good to have a few real estate agents working with you. 

They can email you hundreds of properties that match your buying criteria. 

That's money in your email every morning.

😊

Hi @johndraper -

Wholesaling is securing the rights to purchase a piece of property with a contract, or...purchase agreement.

You can either purchase the house yourself, OR, you can assign the contract to another buyer. 

In doing so, you can collect a wholesaling fee. 

Do a search on youtu.be for biggerpockets wholesailing. 

If there's any questions you have along the way, feel free to reach out. I'd be happy to help. 

Thanks

Hi @vannachham

Here are my top 3 take aways from that experience...

1. Patience is truly a virtue. The escrow process can be brutal sometimes. 

[...or maybe I was just anxious to get emails and signatures. Lol]

2. Leave your emotions at the door. I fell in love with the project which isnt a bad thing, but it took my focus off of other deals.

Sooner or later, you'll just start calling them doors. 

3. Reinvest into your business. Outsource. Teach others to run your acquisition and disposition roles while you just oversee the operation. 

If you have more questions, or you'd like to connect on future projects, feel free to shoot me a message. 

Thanks

Investment Info:

Single-family residence wholesale investment in San Diego.

Purchase price: $417,000
Cash invested: $1,000
Sale price: $575,000

3/2, 1400 square feet in San Diego California. Technically it was a 2/2, but my cash buyer converted the den to a third bedroom. The repairs were cosmetic. And his wife is a real estate agent. After my wholesale fee of 20K, and roughly 17K in repairs, they walked away with just over 100K. Life is good. I'll continue to wholesale until I can start buying multi-families.