Officially a California landlord!

8 Replies

Hi! My name is Julio. I just want to give a shout out to all the amazing people at BP and all you who contribute your knowledge and expertise to encourage and empower so many people to take action and get into their first deal! You guys are awesome!!

So, I studied all I could in 2016 including all the resources on BP (yay! Thx BP!!) and made a decision to start investing in 2017. On the 2nd day of the year in 2017, I made an offer on my first 6-plex and it was accepted! 5 properties later, still buying and holding, building a rental portfolio.

I want to learn how to wholesale. I understand the concept but I have yet to do my first wholesale. The actual execution of the process eludes me. Looking for someone here on BP who might be able to set me running.

Also looking to expand my knowledge in buying and holding, as well as in asset protection and tax shelters. I have a lot to learn!

I also would like to contribute with the little that I have experienced thus far, to help others get their first deal! Any Q’s? Happy to help! Happy investing!

Good luck Julio, tenant-landlord law in California is pretty rough from what I hear...

@Silvanus Beckley - Hey there, I don’t have a whole lot of experience but one thing I noticed early on in California is that there are two approaches to buying and holding: one is to maximize cashflow, the other to maximize appreciation profit. In California, cash flow is in the hood and appreciation is in the nicer neighborhoods. While the hood as well as the nicer neighborhoods will both appreciate, approximately doubling their value in 15 years, you can maximize your return buying better properties in better neighborhoods. The only downside, so to speak, is that since nicer neighborhoods are more difficult to cashflow, unless you have a good chunk of money to put down, you will have a negative cashflow starting off.

I didn’t have a ton of cash so after carefully considering my options at the time, I went for maximizing cashflow. Its been great! You do have to have your rental contracts in order and be super diligent with screening tenants, iow, up your management game, but it’s worth it. You’ll need a good eviction lawyer lined up ahead of time. I’ve done two evictions so far. One property I bought blind with a tenant in it, but it was a screaming deal so I took the chance and it paid off. It cost me $1100.00 and 3 months from escrow closing to evict the person without having a rental agreement. The second one, I tried to help out a lady with 5 kids who was struggling. She paid for about a year but then started with excuses as to why she couldn’t pay. Lesson learned.

Other things, I set my cashflow goals up in short term, mid term and long term timeframes. It helps to define a measurable success or a miss. I’ve hit three of my four goals and now Im pursuing that fourth goal, 20 doors by March 2020. Im currently at 14 doors.

Another thing for me was to keep my financial exposure as conservative as possible. That helps minimize the risk of losing a property should things not go as planned (although things always go as planned, right? lol)

All that to say that the more you you can define and articulate your goals, the better chance you will achieve them (learned that from the book Think and Grow Rich) and it really did help. Hope that helps a bit :)