All Forum Posts by: David Friedman

I’m 30 years old turning 31 this year. I’d like to think that I’ve done very well but nowhere near 8 figures on an annual basis. My net worth, yes, but annual would be quite insane. Sounds like you aren’t starting out without much, so you need to provide value for other people to get them to trust you and build relationships. The road to being a millionaire takes a team and a lot of hard work and a lot of risk. Maybe a more realistic goal is to start by earning your first $100,000 or $1m and then reevaluate. The best advice I can give you is to network with the right people. Educate yourself and become very good at providing value to your network. Don’t worry about your second deal when you haven’t even done your first yet.

My team wrote a few articles that I think are relevant as well:

https://www.realicore.com/articles/8-reasons-to-invest-in-re...

https://www.realicore.com/articles/820-riverview-dr-redlands...

https://www.realicore.com/articles/what-to-expect-when-hirin...

Hi @Bill Noble, my company, Realicore Property Management, has several residential properties that we manage in Redlands as well as commercial (We manage Ranch Market at 800 E Lugonia Ave, Redlands). We would love to earn your business. Our office is in Downtown San Bernardino. I live in Redlands with my gf and chihuahua near Prospect Park. We love this city and the Inland Empire in general. My business partner/father and several of my employees, live nearby in Yucaipa. Please email me the address and I would be happy to send you more info about pricing, services and how we are building a better community via professional real estate services. Dfriedman@realicore.com

If you plan to live in it, South Redlands is the better choice, but also 30-40% more expensive than north Redlands. A $500,000 house in North Redlands is now $750,000 in South Redlands. North Redlands on the north and east side of the University is very nice. The east and the west side are a little run down, but I don't expect that to be the case forever. More and more high paying professionals moving out this way to work at ESRI.

8-10% that will be move-in ready is going to be tough in any market except for maybe the high desert or San Bernardino. FHA 203k could get your foot in the door with a light fixer though to build that equity you are hoping for. Let me know when you are ready and we can keep an eye out.

Are you approved for a loan? I'm guessing you would move into the main unit and lease out the second unit? You are going to have better luck in north Redlands. Do you have an estimated purchase price or ROI you are looking for?

Hi Jerome, congrats on you first investment. I live in Redlands and invest primarily in San Bernardino. Deal flow is tight, but a good deal will pop up when you least expect it if you keep pounding the pavement and networking like you’re doing so just be prepared when the right deal comes along. Nowadays we mostly invest in commercial because it’s less competitive than the residential market and more lucrative if you are creative. 

50 would be more manageable, but that’s not the right question to ask. Think about how you will scale. What would be more scaleable would be managing as many flips as you feel comfortable managing within the skill of your team and wholesaling the rest of the deals. We would use HM for most of them, but it become too chaotic. Contractors fall off, you miss something because you were too busy working on another project. Because every fixer is different and unique it’s just not scaleable. That being said, do as many as you can, but just start to think about how to scale.

I can tell you from experience that you can only taking flipping so far before it becomes extremely difficult to scale. I've flipped 100 homes a year before in California. Juggling that much hard money and homes becomes inefficient and you are better off taking your profits from flipping and moving into multifamily, commercial or large single-family home developments. Imagine having 100 houses spread out all over an area. Imagine the construction team and project management team you would need to manage that. If it takes you 8 months on a house instead of your planned 4 months, the interest on the hard money took all of the profit from that project. All I'm saying is flipping can easily cascade and you are better off creating a strategy that takes advantage of economies of scale.

Each city will have different requirements. Also depends on the zoning if you are allowed to do it in the first place. It could be a lucrative venture. We have purchased single family homes with garages that already had plumbing and electrical ran to the garage which made the conversion much cheaper. Look for deals like that and it can work to your advantage.