Los Angeles, CA · Member since 2014 · 33 posts · 6 votes
I am new to real estate investing. I would like to purchase rental property where I live (Los Angeles); however, average home prices are $500,000. With prices as high as they are, how does one start the investing process?
Richard Villosis
The same way people get started anywhere else. Keep in mind though that the strategy may be different.
The numbers are bigger, but the fundamentals are the same. You can either buy a property with cash or get a loan. If you don't have the cash or the ability to get a traditional loan, you may have to use creative financing or partnerships.
Richard Villosis
The same way people get started anywhere else. Keep in mind though that the strategy may be different.
The numbers are bigger, but the fundamentals are the same. You can either buy a property with cash or get a loan. If you don't have the cash or the ability to get a traditional loan, you may have to use creative financing or partnerships.
I am new to this too but learning every day. Don't give up. I think you might need to consider either a joint venture or possibly hacking. You know, buy a multi-family property, live in one and rent the others while you rehab along the way. Keep up updated!
Welcome to BP and to real estate investing! Your comment is common amongst new and sometimes even seasoned investors -- if your particular area is too expensive for you then look elsewhere. That doesn't have to mean another state altogether (although, sometimes that's a great tactic) but maybe 1 hour, 2 hours, etc from LA. I live in Philly and my city is much the same -- only hedge fund companies are buying property or buildings in the city because they're the only ones who can afford it and for little guys like me, the margins are too small. The city is yielded out. But, that's not to say that the suburbs of Philly don't have opportunities because they do! I'm sure a location within driving distance of LA is worth looking into. Also, listen to the BP podcasts -- they regularly have guests who live in SF or LA or NYC and who are successful investors. It can be done! Good luck.