Can't Get Momentum With Boots on the Ground OOS..Suggestions?

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Can't Get Momentum With Boots on the Ground OOS..Suggestions?

Jeff Petsche
Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes

Hello BP Community. I'm looking for some advise/suggestions regarding building the relationships/teams with boots on the ground in OOS markets.

I'm a real estate Broker here in Southern California and investing in my own backyard is just not an option for me at this time. I still run my retail business here, but it's not the best area for buy-hold/cash flow. Just too expensive.

I am part of several referral groups on Facebook and have success making the initial contact with many other agents in various markets, but then that is where it seems to stall. The initial conversations go great, I provide my buy-hold criteria to the agents, I let them know I have $200K in capital to invest with and then NOTHING happens.

My partner and I are ready to pull the trigger and get our first few deals under our belt, but I'm not getting the deals put in front of me to analyze at this point. I'm doing my own searching online, but when I call to get more information about the property, the rental market, etc. it's dying on the vine.  

I've also been given some resent referrals for local banks and hard money lenders in the markets I'm looking, so I have my financing set up, and are you ready for this, over the past week NOBODY has returned my phone calls. Yes, NOBODY!

I'm staying positive and I keep getting on the phones because I know somebody will want my business, but was hoping others here could share their experiences when they were building teams OOS.

I'm not even opposed to getting on a plane to visit the markets, set up some meetings and hunt for some properties while in town because real estate is my 100% focus. 

Suggestions?  

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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
9y
Originally posted by @Jeff Petsche:

@James Wise Thanks for the comment and in NO WAY did I come across in the manner in which you described. Because we all work for the same umbrella company (Keller Williams Realty), the conversations were very professional and respectful in every way.

I think it's the latter of your comment. I think these agents are either talking themselves out of the fact that there are deals out there to be made, you just have to look under a lot of rocks to find them. I know some have given into the fact that the areas are saturated and too competitive to have a chance at the numbers we are trying to hit, or they just don't have the experience working with OOS buyers who are not paying retail prices.

I know a few of the agents refused to write low offers because they were worried about insulting the seller/listing agent and damaging their reputation. I respect it, but they are just not the fit for me and my partner.

 Jeff with all due respect it sounds as though you came across exactly as I described in my original comment.

"too competitive to have a chance at the numbers we are trying to hit"

Translation; we want to pay less than what everyone else is paying for the same product.

"buyers who are not paying retail prices."

Translation; we want to pay less than what everyone else is paying for the same product.

"I know a few of the agents refused to write low offers because they were worried about insulting the seller/listing agent and damaging their reputation. I respect it, but they are just not the fit for me and my partner."

Translation; we want to pay less than what everyone else is paying for the same product.

If not one, but several agents are not calling you back I think it's time to identify what the common denominator is here.  Agents like to make money. You are an agent, who clearly likes to make money. As a fellow agent would you really be excited to work with someone who wants to buy the same product as everyone else, only he needs to get it for a cheaper price? I sure wouldn't.

Imagine a family comes into your office telling you that they need to move into a 4 bed home in a certain school district. You explain to them that in said school district 4 bed homes comp at $400k. They explain to you that if you can get them one for $320k not only will they buy it they will refer you to their friend who also wants to buy one of these $400k homes for $320k....Sounds pretty ridiculous doesn't it? Would you jump to work with them and anxiously wait for the referral of their friend? Or would you show them the door & work with the family who is ready, willing and able to pay $400k? I think the answer is clear.

When we talk about the family and the school district it seems so clear and obvious that they would make for a bad client. However when "investors" talk to out of state Realtors about "investment" properties exactly this way, investors don't seem to fathom the idea that they too could be a bad client.

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  • Jeff Petsche
    OP
    Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
    9y

    @Rebecca G. Thanks for the comment and I'm not "disagreeing" with Jay or anybody for that matter with regards to REHAB from a distance can be risky if you don't have the right team on the ground. However, with buying from a TK provider, aren't you already buying at "retail" prices with REHAB done, tenants in place along with PM company ready to manage? Or is that not always the case with TK? If it is the case, then the BRRRR strategy does not work with going TK.

    When going TK, from what I've been reading and told by TK providers I've talked to, you don't have the option to REFI out the property at ARV because you are already buying the property at ARV or very close to it. Our goals are to be into holding rental properties with as little (or none) of our own capital as possible.

    Unlike some investors who want to be 100% passive and going TK works for them, I don't. Working within REI/my RE retail business here in CA is what I'm going to be doing 100% of the time, so if I need to be in markets to visit some projects then so be it.

    I have connected with many investors here on BP who are having tons of success from a distance with BRRRR properties, but they 100% have to have the right teams in place.

    I've also talked to a few who own over 30 properties in varies markets and have never stepped foot in the states they invest in, which I think is CRAZY. I for one have no intentions to just sit here in CA and not meet the people I am working with in our markets or have an idea of what the properties and neighborhoods look like, etc. I plan on getting on the plane and getting my own boots on the ground when we identify the market(s).

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Jeff Petsche in that case I can help you.. every market in the mid west deals can be had... and you can get the general feel of a market right on the internet.. also skip the brokers to start and go straight to PM in the markets you want to work in.. they are your lifeline... thats what I always do.. they will then either do some brokerage work. ( this is how I set up my cleveland vendor the PM we picked and liked in Cleveland also has a sales side so he is getting the inventory for us as well, some of it from his clients that are suffering burned out landlord syndrome, some of it his listings and the rest straight off of MLS.. to date I don't think we have dealt with a wholesaler in that market.. and you being a broker probably know the risk of using a wholesaler there are some good ones for sure but there are many that are beginners and simply will waste an inordinate amount of your time.. so caution there.

    Once you interview 3 PM's in your market you want to work.. and they are the one's on the firing line they will tell you straight up what rents will be etc etc .. what areas are super tough to work or even better areas they won't work because the tenant base is so tough or its a war zone.  Wholesaler wont care you want to buy they will sell it to U buyer beware.

    Then go forth to that city spend time with the PM.... bring your proof of funds so they know your real.. if they don't help acquire your inventory they will know the good brokers that will work with you... and your problem is solved . 

    Although keep in mind the markets have firmed up and its not 2011 ... as is before rehab prices have risen in all markets what was 10k in 2011 is 30k today.. .I know I fund a few hundred a year and have been for many years.

    Your on the right track though if your going to do this you need to be able to scale quickly other wise its not worth doing in the first place your better off staying close to home.  And don't take offense not every broker will work with you on these deals they don't make much I mean how much is a commish on a 20k house.. or 30k house.. I know Mr. Wise would not work with me.. and I am not one of those tire kickers... but I don't take it personally its his business and he can choose his clientele 

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  • Jeff Petsche
    OP
    Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
    9y

    @Ian Walsh I would love to invest in my local market for many reasons. Unfortunately our average sales price is $675,000. Buy/Hold just does not pencil in my market (as least not for numbers I want).

    You'd be lucky if you got .05 rent/value ratios and in many cases it's .03. A $420,000 purchase might get you $2,100/month rent (.05 rent/value).

    I've even looked in high desert markets (90 minute drive time) where you can get a property for the mid $100's, but the rents still don't pencil.

    I've been a RE Broker in CA for 14 years and in my opinion those who invest here are playing the "speculation" game on equity, not cash flow. Or, they are wholesalers looking to make a quick dollar, or flippers, but not buy/hold.  

    There is a tri-plex in Laguna Beach listed for $7.4M. Yes I said TRI-PLEX, not a 250+ unit apartment complex. Who in their right mind would EVER pay such a ridiculous price for 3 units!!!

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  • Jeff Petsche
    OP
    Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
    9y

    @Jay Hinrichs thanks for the advise and I'll start vetting the PMs in the few markets I'm looking into and follow the steps you suggested.

    Thanks for your input/advise and I look forward to posting some success stories sooner rather than later.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    9y
    Originally posted by @Jeff Petsche:

    @Ali Boone We are wanting to implement the BRRRR strategy, so Ideally we are looking for "off market" deferred maintenance properties to REHAB and then get it in rent ready condition. We are not opposed to looking at wholesale deals, but not interested in retail pricing or TK products at this time.

    SFR up to 4-Plexes will work for us.

    I think James Wise is correct in his comments about most agents are more willing to work with the "retail buyer" who is willing to pay "retail" pricing NOW, which is not our play here, so I can see why some agent see it as a waste of their time. It's sad, but true because I would hope they would want to build a relationship with an investor who could possibly buy 100's of properties through them over several years, if the relationship and market continue to make sense.

    To me it's about LONG TERM RELATIONSHIPS and VOLUME. Not just us looking to buy a ONE OFF property here and there! We have the cash to buy 10+ houses tomorrow if we found the right deals,

    I work with investors here in CA who offer 50% off asking prices on multiple properties and although they lose many of them, I still work hard for them because I see the BIG PICTURE being in a relationship with them.

    In the end, we will work with the right agents OOS and they will be glad they took a chance on us.

     Jeff,

    Your thinking is faulty. If it wasn't faulty you would have agents lining up to work with you. I know that may sound harsh so I apologize if it's coming off like I am attacking you because that is not my intention here.  know this space and all of the strategies very very well. 

    I see this faulty thinking on a daily basis so my intention with this thread is to help both the out of state investor and local agents hoping to build a successful business working with them understand the fundamentals of why this thinking is so faulty. If we can get past that it would save the investors and the agents out there so much wasted time and effort which could be used towards actually getting deals done and building bigger and better businesses.

    With all of that said lets remember why agents are here in the first place. To make commission. Selling you 100's of properties would generate tons of commission. Commission is presumably what they are in the game for in the first place.

    Here is the rub. You will just keep spinning your wheels if you continue with your current faulty strategy of explaining your model to agents then beating your head against a wall wondering why none of them are giving you the time of day. What you are offering provides ZERO value to the agent client relationship. What does Gary Keller taught above all else? AIM FOR LISTINGS. The amount of effort it would take to track down a potential deal for you that is undervalued will provide an incredibly poor return on time and effort and actually HURT the agents business in the long run.

    There are two places the agent can go to find these undervalued deals for you.

    1. MLS.

    They can scour the MLS hunting for deals for you and assist in slinging offers on many of them. As we have already addressed other people are paying more for these properties then you are so this strategy will lead to an incredible amount of dead ends. That time could be better spent looking for listings or working with the buyers who are making more competitive offers. Agents working the buyer side of MLS listings need to explain to the buyers what the market is producing and see if that works for the buyers criteria. If it does then that is going to be a great agent client relationship. If what the market is producing is not what the investor is looking for and the investor is expecting the agent to deliver something different, then that is going to be a terrible agent client relationship. Remember folks, agents can only sell you what the market is producing.

    2. OFF MARKET. 

    Many investors hear or think that they need to find an agent who is good at finding "off market deals" First we need to understand how ALL properties end up "on the market" they are put there by agents who found "off market deals" and then placed them "on the market". Currently I have 51 personal listings so I am very good at finding "off market deals" However If an out of state investor called me and asked me to send him all the "off market deals" I come across so he can buy all of them I would explain to him that all of my "off market deals" will be going "on the market" for the highest bidder. So long as he is willing to pay more then everyone else he can go ahead and buy all of my deals.

    So understanding that logic, why on earth would an agent spend their time tracking down sellers who are willing to sell for less than what their home is worth just because they have you in their pocket willing to buy these houses? If they do find a seller who is willing to sell for less than what their home is worth they don't actually need you as they will have a line of buyers fighting over said undervalued property. 

    They should focus their efforts on securing the listing and guarantying themselves a paycheck no matter who buys it. On top of that point, if an agent meets with 100 sellers they are going to convert a lot more of those appointments into actual listings if they try to sell the properties for market value as opposed to dramatically less. 

    Lastly, meeting sellers and regularly trying to get them to sell their homes for less than what they are worth could lead them to breach their fiduciary responsibility if they secured the listing & if they didn't secure the listing and just went ahead and did the deal representing just you as a buyers agent they would be cutting their earning potential off at the knees and literally crippling the potential growth of their business because as we all know LISTERS LAST and as I said earlier if they secure the listing and its undervalued there would literally be a line of buyers. The value proposition you offer of being able to buy 100 of these isn't really valuable as there are tons of other guys who would also buy 100 of these. When you buy an undervalued property you are literary making money. There is no shortage of people in this business who would like to obtain money.   

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  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    9y
    Originally posted by @Jeff Petsche:

    @Ian Walsh I would love to invest in my local market for many reasons. Unfortunately our average sales price is $675,000. Buy/Hold just does not pencil in my market (as least not for numbers I want).

    You'd be lucky if you got .05 rent/value ratios and in many cases it's .03. A $420,000 purchase might get you $2,100/month rent (.05 rent/value).

    I've even looked in high desert markets (90 minute drive time) where you can get a property for the mid $100's, but the rents still don't pencil.

    I've been a RE Broker in CA for 14 years and in my opinion those who invest here are playing the "speculation" game on equity, not cash flow. Or, they are wholesalers looking to make a quick dollar, or flippers, but not buy/hold.  

    There is a tri-plex in Laguna Beach listed for $7.4M. Yes I said TRI-PLEX, not a 250+ unit apartment complex. Who in their right mind would EVER pay such a ridiculous price for 3 units!!!

     Maybe the guy who just spent 10 million on the single family down the street, considers 7.4 mil for the tri as a total bargain:) More of a trophy to park cash for some others I imagine. It must be one helluva unique property and insane location. 

    I get your point 100% still. Good luck OOS!

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @James Wise  one of your better posts..  I think a lot of times the locals have an expectation of what a good deal is and we see it every day were out of state folks will and do pay more than locals will and will accept that.

    I just got an email this morning we just ratified two more Cleveland deals... not sure where they came from or what area of the city I won't know until I see the huds... but they will hit the 1 to 1.5% rule based on what I know.

    I suspect if the OP target is 2% or better that horse left the barn a few years ago.. only way folks get those these days is dumb luck and or if they roll into town with their own marking campaign .. direct mail.. billboards  radio ads etc etc. and they circumvent realtors wholesalers and buy direct from the home owners..

    In markets I am real keen on thats what I do ... I target and area and become my own wholesaler  ... IE I am the buyer I don't need a realtor or wholesaler between me and the seller... but in the mid west in these cash flow homes we have just not had to do that as there is simply plenty of inventory.. at least for the numbers my vendors want to make.

    And for the whatever its worth file there is no such thing as buying with built in equity.. its worth what you paid for it when your tlaking mid west rust belt.. nothing and I mean very few will sell for refi appraisal values.  I know that first hand you can have all the so called arv value you want but its a pipe dream.. this stuff all sells for backing into 1 to 2% rule and what someone will pay for a given cash flow.. there are no homeowners buying this stuff.

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  • Jay Bhatt
    Tarrytown, NY · Member since 2016 · 79 posts · 43 votes
    9y

    @Jeff Petsche I was in the same boat as you 8 months ago.  Like you I cast a wide net of multiple markets. I spoke with tons of turnkey providers across USA and got information about local market which I then vetted with the help of local investors in those markets. After reviewing the numbers, I decided to not go through turn-key model as I realized I could be more active and develop my own team on the ground.

    I had created criteria about renter to homeowner ratio, crime rate, employer base etc. to narrow down the markets. Finally I visited three markets and had the appointment to meet with local RE agents, wholesalers, contractors,attorneys. I  had their information through BP - either they were member of BP or some local investor recommended them.

    Once I visited the local markets, looked at the properties , it became evident the market I wanted to be in.  We got 4 proeprties in last 6 months and eyeing to scale up in the upcoming months. We are in North West Indiana market. We are focusing on buy and hold strategy.

    Feel free to reach out if you need any more information. 

    WIsh you much success.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Jay Bhatt  I like that market good choice... get the over flow from chicago

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  • Jeff Petsche
    OP
    Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
    9y

    @Jay Bhatt Thank you very much for your comment and it's great to know that I'm not going crazy and not alone. I would love to talk by phone if you are open to that conversation. I promise I won't take more than 20-30 minutes of your valuable time.

    I'll be sending you a connection and email.

    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y

    OK, so now you know what it might take in order to do it RIGHT, and I'd argue even then the risks don't go away or get down to par with local ... now, factor in all of those extra hassles and expenses you would be signing up for and don't forget to go back and revisit your own home market where practically none of this extra baggage applies. Factor in the exceptional long term average appreciation and rent increases in CA and the low, zero, or even negative (if property is selling below replacement cost) appreciation you'll get out of state. Factor in the extra knowledge and control you would have over local investments, and the effect that has on risk. If you don't come up with a different answer then your calculus is quite a bit different from mine, and mine is based on 15 years of experience both in and out of state ... which is ok if you get a different answer for you than I do for me ... but at least then you made an attempt at what I would consider a fair comparison.

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  • Brett Wehn
    Idyllwild, CA · Member since 2014 · 5 posts · 6 votes
    9y

    I highly recommend reading some of the posts here about out of state investing by Aaron Mazzrillo before parting with any of your hard earned cash. Maybe even meet Aaron for lunch or coffee. He's practically your neighbor, and a wealth of insightful information about REI.

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  • Mark Wolffer
    Newport Beach, CA · Member since 2016 · 26 posts · 20 votes
    9y

    @Jeff Petsche,

    Jeff,

    I understand your market area and others like them...in fact I place quite a bit of tennis around your area.

    Some of the common problems can be resolved by not going after properties that everyone is looking at. When you hit up an agent, that agents job is to help you make money for him. The typical agent has access to the MLS. The MLS is not the hotbed for discounted investment properties. The seller agents job is to NOT sell below market value. The only part of the MLS that can deliver below market property is the "probate" sale....but you need cash. Not only that...why would a broker/agent sell to you a probate property (bid) unless you also agree to make them your seller agent/broker after you rehab the property. Any smart broker will already have many cash buyers waiting to buy probates...and they will help their "friends" to get the best deals. Markets throughout the USA are getting quite competitive and the major buyers have the marketing dollars and knowledge to keep most "little investors" out.

    Are you going after properties that have been vacant for 9 month or longer, where the owner lives out of state, and where the owner has "x" percent of other investment properties also vacant? If you look for properties before the mass market sees them....your odds will increase.

    Are you reaching out to women over 70 who live alone and have tons of equity in a home that is too large for them?

    If you have any questions of how data mining can find you properties...hit me up.

    0Reply
  • David Faulkner
    Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes
    9y
    0Reply
  • John Kunick
    Investor · Broken Arrow, OK · Member since 2016 · 210 posts · 314 votes
    9y

    Jeff, Tulsa is a great place to buy and hold.  I own lots of 3BR/2bath homes and manage them myself.   Sorry that no one is calling you back.  That sucks.

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  • Ralph R.
    Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
    9y
    Jeff Petsche I invest out of state and have a couple of teams in different towns. You gotta be patient. One thing it's the wrong time of year. Everybody is taking vacations enjoying weekends and busy as the dickens selling real estate. Everybody's customer service falls short in the summer. That's why nobody is calling u back. Second thing. Because real estate sales pick up in summer prices go up and there isn't as many good deals. You just gotta keep Picken at it and some thing will happen. You may go along for a year or so then it all falls into place. I usually fall into the best deals in the winter months. Lastly I'll give you my best trick for getting a good team. Start with the Pm. Vet several of them. You need to be a good judge of character here. If they don't want to spend time talking to you or don't seem sincere move on. Property management is very competitive. These guys usually will fight to get your business. They will call you back most times. Take your time and be sure this is the company that you want to handle your many thousand dollar investments. Pick the best one you can get. This is the core of the team. Now you use the PM to find a realtor and the realtor to find the lender and the inspectors and attorney and so on. As you expand the team you have more and more people to get recommendations from. It always starts at the PM. though. They are the ones you deal with the most and the longest. They are the ones that will call you back most often. I own 3 properties because my PM's knew of investors wanting to sell. Bought all three as off market pocket listings. Two of them I bought sight unseen. RR
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  • Aaron Mazzrillo
    Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
    9y
    Originally posted by @Jeff Petsche:

    I'm a real estate Broker here in Southern California with Keller Williams Realty and investing in my own backyard is just not an option for me at this time. I still run my retail business here, but it's not the best area for buy-hold/cash flow. Just too expensive.

    Problem #1. You're looking at everything from a "listing" perspective. Yes, you are. I'm a licensed Broker, live here in SoCal and I find plenty of deals month after month.

    I am part of several referral groups on Facebook and have success making the initial contact with many other KW agents in various markets, but then that is where it seems to stall. The initial conversations go great, I provide my buy-hold criteria to the agents, I let them know I have $200K in capital to invest with and then NOTHING happens.

    Two real estate brokers/agents talking about investing sounds about like to engineers discussing how to build a better mouse trap. At the end of the day, we're still using the same old mouse trap that's been around for over 100 years. How do you get listings? Do you talk to other agents? No, you talk to people who own property. So, you do the same thing except you don't talk to them about wasting both of your time with a useless piece of paper full of promises and no action (listing contract) and instead you write an offer.

    My partner and I are ready to pull the trigger and get our first few deals under our belt, but I'm not getting the deals put in front of me to analyze at this point. I'm doing my own searching online, but when I call to get more information about the property, the rental market, etc. it's dying on the vine.  

    It's nobody's job to put deals in front of you, but your own. Deals are made, not found. There isn't a secret factory in a tree where deals are made. There is a secret factory in a tree where cookies are made though.

    I've also been given some resent referrals for local banks and hard money lenders in the markets I'm looking, so I have my financing set up, and are you ready for this, over the past week NOBODY has returned my phone calls. Yes, NOBODY!

    A real estate agent that returns phone calls? I've never heard of one of those either so this isn't a surprise.

    I'm staying positive and I keep getting on the phones because I know somebody will want my business, but was hoping others here could share their experiences when they were building teams OOS.

    I'm not even opposed to getting on a plane to visit the markets, set up some meetings and hunt for some properties while in town because real estate is my 100% focus. 

    This is the first piece of sound advice you've given yourself. Of course, I'd rather just get in my car and drive around for a few hours (about the same amount of time it will take you to stand in line at the airline counter, then get through the TSA grope down, and look at some local properties I can put deals together on. Then while you're getting on your plane I'm going home to dinner.

    There are so many things I read in your posts that are obstacles you put in your own way. "I work with investors here in CA who offer 50% off asking prices on multiple properties and although they lose many of them." Do they lose all of them? You said "many." Let me tell you, you're not the only agent they are doing this with and I bet they are getting a few deals doing this strategy. I certainly know investors who do this and it does get them deals. I think you have a lot of self limiting beliefs about what is possible here in SoCal.

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  • Jeff Petsche
    OP
    Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
    9y

    @Ralph R. Thanks for the comment Ralph. It's much appreciated and yes I know the REI game is about patience and perseverance. My personality is constantly challenged with patients. I seem to want results "yesterday", so I struggle with that in my day-to-day life. My business coach and I are working on that!

    You are the 4th person who has mentioned that building relationships with PM companies is key, so I'm starting that process now.

    Thanks again and good luck in your REI journey.

    0Reply
  • Jeff Petsche
    OP
    Real Estate Broker · Yorba Linda, CA · Member since 2017 · 154 posts · 114 votes
    9y

    @Aaron Mazzrillo Thanks for the comment and words of wisdom Aaron. Maybe to some degree I have limited beliefs as to what is and isn't possible in CA, and as a real estate Broker here in CA I do have access to resources and I have relationships in place that I don't have in other markets.

    Outside of a "transactional based business" like retail, wholesaling or flipping, do you really believe SoCal is a smart place to invest for long term buy/hold with positive cash flow?  I'm just not seeing the numbers working in our favor, and if you do come across that below market property with a motivated seller, the right play TODAY seems to be either wholesale it or flip it, not REHAB/HOLD/RENT because the rent/value ratios are ridiculously low, and with a SHIFT COMING, you could easily lose 15-20+% of equity (or more) in the next 2-5 years here in CA.

    Anybody who thinks this appreciation UPSWING can last forever is falling into the false sense of security like before or not reading the news. With the House approving a bill, dubbed which scales back or eliminates many of the post-crisis banking rules under Dodd Frank, things are about to get "stupid" again and many feel  the Choice Act would leave the U.S. economy vulnerable to another financial crisis. (http://www.npr.org/2017/06/08/532036374/house-passes-bill-aimed-at-reversing-dodd-frank-financial-regulations)

    I'd rather not be investing in BOOM/BUST states right now! Even when this financial crisis hits, and it will, I'd rather be in states where the impact is not nearly as severe.

    0Reply
  • Jay Bhatt
    Tarrytown, NY · Member since 2016 · 79 posts · 43 votes
    9y

    @Jay Hinrichs That's the expectations. Thanks.

    @Jeff Petsche PM me and we can chat on the phone during the weekend.

    0Reply
  • Account Closed
    San Francisco, CA · Member since 2017 · 56 posts · 23 votes
    9y

    @James Wise

    Well said . . .

    1Reply
  • Sean Carroll
    Investor · San Jose, CA · Member since 2017 · 453 posts · 254 votes
    9y

    @Jeff Petsche you could try Memphis invest for that market. Maybe fly out there to see their operation

    0Reply
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