All Forum Posts by: Michael T.

@Jon S. there have been a few that have mentioned that you are in a position to invest and a few that have mentioned you are not in a position to invest.  Honestly, it comes down to what your long term goals are and what you want to do to achieve those goals.

As @Arlen Chou mentioned you should protect the current interest rate you have, as interest rates are most likely to continue to increase going forward.  

You can try to do get a HELOC but most likely the maximum you'll get is approximately $50k which isn't too bad. If you go this route I recommend you google "introductory HELOC Los Angeles" and there will be numerous banks and credit unions that will have an introductory offer of 2.99 or 3.99%.

My recommendation is to reach out to a mortgage lender both here in Southern California and out of state (depending on where you want to invest) and determine how much you'll qualify for based on your current numbers.

While it will be a process to get everything figured out the key is to take action.  Don't just sit on the sidelines. 

@Joel Fernandes based on your post from 3 days ago, finding the right property will require more than a few days.  The process of finding a good deal whether it be turnkey or not requires patience and I agree with numerous others that have commented here.   

https://www.biggerpockets.com/forums/12/topics/661...

Many of the recommendations provided are; change markets, change your criteria, persistence, educate yourself more on the process of buying turnkey rentals.

While buying turnkey is easier because it doesn't require as much effort on your part doesn't mean everything that happens during the process is going to be easy.  Turnkey is not easy money there is still work required.

Keep going and if you put in the effort and due your due diligence you'll find the property that works for you.

@Martin Neal the deal is definitely a single as @Andrew Syrios mentioned, however, it's a starting point and you have to start somewhere to learn and become successful.

Based on the information you provided the biggest opportunity to improve your results and get a double versus a single is in your renovation costs. 

What was the actual ARV (after rehab value)? If you could have gotten the same ARV for doing about half the renovations it would be closer to a double.

But overall good job on taking action!

@Shawn C Steider the reason banks don't typically lend on a loan of $50k or less is the standard home loan minimum is 50k and they don't make any money on anything lower. 

The only way they make money is higher interest and charges and the. It becomes predatory lending.

@Chris Mason can probably provide better guidance and there are a few articles on this here on BiggerPockets.

Options are;

- HML

- HELOC and buy with cash then BRRR

- Refinance another property and buy with cash then do BRRR

- Borrow from friends and family 

Often the Agent will get paid the typical commission of 2-3%.

If the Agent is just providing a referral you'll do a referral fee and it can range in %'s and dollar amounts  depending on the deal but 25% of the 2-3% commission is very common here in Southern California.

@Gani Veer do as the others have mentioned and sell the property.

@joe 

@Joe Villeneuve details the reasons and since the property is not an appreciation property it's not worth to hold on to.

If there was a good opportunity for appreciation in the very near future it's a different story but not in this case or the Chicago market.

@Josh C. all of the recommendations here area exactly what you should apply in your current strategy of getting a lower offer accepted.

- change your criteria

- change your market

- change your terms

@Scott Luetgenau and @Nathan Gesnerhad good comments here and even though it's been listed below market value you still have a lot of options.

You don't have to rent to anyone, you can take the most qualified candidate and have an exit plan for your tenants if you decide to rent at the current listed price.

With the California rental laws you'll want to make sure you have a tenant exit strategy so you can get market rent in the future.

Honestly, if your investing in real estate you don't need a license.  

A license will typically be used for retail residential and commercial but only if your investing in your own market or state. 

If you plan on investing OOS there is really no reason to get your license but if you plan on doing a lot in California then maybe long term it makes sense.

Riz, there are multiple markets that allow you to achieve passive income and it depends on where your willing to invest.

Where in California are you?  If you own your house here in California you can either sell or refinance to get access to the 600k.

Do you already have access to the capital?