All Forum Posts by: Sean Yang

My only concern with buy&hold in an appreciation market like LA is timing. It's like trading stocks because you pretty much have no control where the market is going. Current market price in SF and LA is historically high and I am just afraid the next correction is right around the corner. It would definitely hurt if I had bought a nice property now and only find it cost half of what I paid a few years later. However LA is a great market for short term fix&flips because now the market cycling is out of the equation. 

@Account Closed Great article and thank you for sharing the numbers. CF vs. appreciation has always been the most debated topic in real estate and in my opinion it really doesn't have a right or wrong answer. It's all about which strategy you are more comfortable with. If you have 1.5m to park why not just do a bit of both? That way you can enjoy the passive income from CF market and in the meantime do some value add in the appreciation market :)  

@Jeff S. That's great advice Jeff! I just got my CA sales person's license and I am planning to take the broker's license a couple years down the road so that part should be taken care of by then. The ability to originate fractionalized loans sounds powerful, but does it only work if there is a subject property and therefore require a deed of trust to each investor? 

@Adam M. Thank you for your advice. Ya this is what I've been doing recently- lending my own money to rehabbers with my name being added as 1st or 2nd lien position. Now I am looking to expand this business by pooling more money from families and friends by offering them let's say a flat rate of 7% and then lend out to rehabbers and get a return for 12% for example and pocket the 5% difference as profit. What you suggest is great if I am a rehabber myself and need to raise capital. I think I will need to talk to a lawyer about my situation. Btw, I will read the book nomoneydown from Brandon Turner :)

@Kevin Yang Thank you for the suggestion. I think I'd go with the LLC route

@Stanley Parsley Hi Stanley, thank you for your response! That's what I am afraid of getting into... What I am hoping to do is simply one step further from investing my own money versus using my families and friends's, so definitely want to stay away from the bank/sec route- with all that cost and regulation it's just not worth the effort for us small players. Anybody knows if there is a way around it? 

Hi, I've been a BP member for a few months now and I am so glad to be connected with so many great minds here. I did some private funding thank to this BP network and now I am thinking of moving one step further. I am planning to start a private fund so that my friends and colleagues who are interested in RE investing can put money together. Then I can help manage the fund by investing in a variety of vehicles such as private funding to developers, buy&hold apartment complexes, etc.

My question is- 1) what licenses/certificates do I need to start such business? I live in CA and I've heard somebody saying a real-estate broker's license is enough for brokering these funds here in cali? 2) what business structure will be a best suit? LLC, S-corp, C-corp? Any advice or thoughts are welcome! Thank you in advance.

Hi All, I am a real estate investor located in SoCal. I am just curious to know what company structure do people usually use for buy&hold business? I acquired my first rental unit last year and I am looking to expand my portfolio within the next few years, however, I dont feel it's a good idea to keep everything under my name.. I've read some posts here and looks like most investors use Trust or LLC, and some even use both. What would you recommend? Either way it's going to cost time/money to setup/maintain, and do you think it's worth this effort?