All Forum Posts by: Robert Crawford

You are missing a huge factor... emotion. Money talks but when a deal is equal, the buyer that builds an emotional connection will always win. 

Make sure you include a story about yourself (or your client) with the offer. I always attach a picture and why this purchase is important emotionally. Try adding that personal touch and see your results.

The most important aspect is actually the Mortgage Broker! Don't bother trying to financing through your retail banker, get a great Mortgage Broker who does multi-family lending every day. The most important aspect of multi-unit is that the lender will count the income of the units towards your total personal income allowing you to qualify for a larger purchase.

A great Realtor is just as important to find the property and run all the number for you to make sure you are getting a good deal that is cash flow positive. I would be happy to refer someone in your area if you would like. 

Feel free to reach out with any other questions or needs

The first thing that popped out on this post was that the homes were "paid in full" 

This is GREAT but it tells me that you're not fully leveraging how the market works. What I mean by that statement is that our system is built on leveraging financing to expand your cash flow. We are in a "fractional reserve banking" system, why not take advantage of it?

Find an outstanding mortgage broker (not banker, I have great referrals) and use the equity to purchase other income properties. Just make sure that the expenses, fees and vacancy rate of 25% will still leave you with a positive monthly cash flow. If it does you can do a hundred of those deals and that is how you gain true wealth.

Also keep in mind that a lender will count the income of a property towards your personal income with financing. It might be better to leverage a multi-unit instead of just a single unit. Residential lenders will loan on up to 4 unit properties. 5 or more units are considered commercial but can be a great investment if the numbers add up.

Uber, Bartend, Marketing for other industries... pretty much anything that gives you flexibility

Hey Kortez,

I know a number of different sites that might help but am not quite sure what you are referring to. Unfortunately, biggerpockets doesn't allow my to post any links to sites (they've already warned me for a few other replies.) Feel free to email me to chat more.

Hi Qemal,

Although Los Angeles can be a tough market, we have found lucrative deals and cash-flow properties all over town. It depends on what you are trying to accomplish. If you are thinking of a condo or single family there are certain areas but I would recommend a multi-unit property. 

Are you aware that lenders consider the income of the property units towards your qualification? this allows you to maximize the leverage of your downpayment and minimize your risk of loss due to vacancy.

Buying Multi-Unit cash flow properties will be your best return on investment and minimize your risks. Also, you may or may not know that lenders consider the income on multi unit properties as part of your total income when getting financing approval, allowing you to leverage your cash.

Make sure you crunch all your numbers and allow a vacancy rate of 25% because that is what a lender will be using to calculate the deal. We specialize in Multi-unit cash flow property purchasing and management. Feel free to reach out if you have any more questions.

p.s. Be careful in the LA area with rent control as well.

p.p.s. Consider utilzing AirBnB to increase your cash flow

Having a great broker can make your life much easier. Allowing them to utilize their network of buyers and gives you a shot at new listings before they hit the MLS.

We have been renting out units on AirBnB in the Silverlake area with some great success. It's important that you set up the profile and optimize the keywords on AirBnB. 

The nicer the unit the more you can charge. Also focus on enticing your guests to leave a comprehensive review to increase your future rental rates. The laws can be strict and technically AirBnB in many areas is illegal but have not heard of anyone being fined as of yet. 

We are getting about $1,500 more per unit then the lease rentals. Any investors interested in cash flow property in the LA area should reach out to us and discuss how to maximize the return and minimize the management.

Hi Patrick,

I've focused on Probate in Los Angeles and am familiar with the process and hurdles it will require. If you still need some assistance I would be happy to help.