All Forum Posts by: Logan Allec

Welcome, @Michael Glotfelty

SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Also, have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!

@Derek Smith Try posting in Facebook groups in your area devoted to people looking for places to live.  I've found my best tenants this way.  Good luck.

Welcome, @Bradford Ortlund

SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Also, have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!

Welcome, @Alexander Jones.

Yes, SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Also, have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.

My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!

@Matt Smith If you've done your due diligence and it cash flows and you're young and have income and cash reserves and can get 90%+ leverage, I say go for it.  Better than kicking the can around forever.

@Tracy Simmons, actually setting up the LLC is not hard. You file a few forms with the Secretary of State of the states you want to form or register your LLC in. You can also pay a company like LegalZoom or Rocket Lawyer. However, it's probably in your best interest to talk to a qualified business or real estate attorney about this before trying to attempt it yourself. Good luck.

LOL is it really that hard to learn a new possible meaning for a word?

If you think "hack" is bad, I suggest you Google the Finnish comedian Ismo's latest work.  :)

@Jay Richards, congrats on your success early in life!  Since I imagine you can work wherever you have a laptop, have you considering house hacking a 2-4 unit with only 3.5% down?  This was my first investment, and it turned out to be a great move!

Also, because you're only putting 3.5% down, you still have plenty of cash to spare to invest in the things that you mentioned and that others in this post have mentioned.

One more thing.  Do you want to be a more "active" or a more "passive" investor?  I'm thinking the latter based on your interest in Grant Cardone's deals.  I don't know your goals at all, but I would imagine that perhaps you get a better return on your time by growing your eCommerce business than you would by, say, landlording, so the passive route may very well make more sense for you.

Also, don't get behind with the taxman!!!  I have seen so many young clients who have found success early in life lose a good portion of their hard-earned wealth to the IRS and FTB.

@Peter Glenn Good luck. Sounds like we have a similar story. I was not interested in out-of-state markets and eventually bought my first rental property (a 4-unit using FHA financing) in Santa Clarita at 27.

Welcome, @Tim Uy. My first investment property was a 4-unit I bought with FHA 3.5%-down financing. It's a great strategy.