Finding your "Farm Area"

[Serena Halterman]

I am trying to get started investing in the Los Angeles area. I want to fix and flip a property, but am having a hard time finding a "farm area" in my price range near Los Angeles. I would like my first property to be in the $100-200k range, so I am definitely not looking in the city of LA. I was looking in areas that border LA county (Simi Valley, San Bernardino, Riverside, etc.) I would like to choose a farm area before choosing a realtor so I can pick a realtor familiar with the particular area. I am having a hard time analyzing/finding a good "farm area" though . Does anyone have any suggestions? Is there a way to see recently sold REOs/short sales other than the MLS? Thank you!

[Aaron Mazzrillo]

There are lots of moderately priced properties much closer to you than out in Riverside or the IE for that matter. Look in the area from the 105 - 405 - 710 freeways. Just because these houses are $200-400K doesn't mean it is a bad area. Entry level housing is always the easiest to acquire, finance and sell. It will be a lot closer for you to drive and get to know the area as well as check up on your deal. I know several IE folks who target that area and do well.

Also, working with an agent who is an investor doesn't sound like the most productive use of your time. Why would an agent who also invests ever pass along a good deal? On a very rare occasion, he/she might, but I guarantee the best deals are going to be closed by that agent. You need to find a commission ninja. Those are the agents who don't invest in property and only care about getting that next commission check so they can keep making payments on their leased car. That is the agent who is going to give you the deals with the biggest equity spreads. Especially when you offer to him/her double end it on the buy if it is their listing and represent you again on the sell. 

Real estate agents are the most corrupt business people, next to investment bankers and the mob. I know of no other industry which requires its members to take ethics training in order to renew their licenses. Find the greedy agent with pocket listings and you've hit the jackpot. One of my best deals to this day came from a pocket listing an agent at my chriropractor's office handed me in the waiting room. It was a Thursday afternoon and she said the seller was accepting offers for 3 days only, told me what their minimum acceptable price was, then said she thought her fax machine might not be working after 5pm and she would be listing it around 4:45pm so I should get my offer in ASAP. I only wish she were still in real estate...