Are CA Deals Too Expensive And Not Cash Flowing? Let's Connect!

9 Replies

I would like to connect with BP members in California that are getting started in real estate investing out of state. I have spoken with a few BP members that are seeking commercial investment opportunities outside of California, specifically in the Greater Atlanta area.

The key to out of state investing is to target a metropolitan with strong demographics and a property that is low-risk, with little to no management responsibilities. Because California based investors are conditioned to absorbent prices for real estate and costs of living, I have found they are pleasantly surprised to see that price points are lower, returns are higher, and the class of the properties is better in Georgia. 

I am originally from San Jose, CA the Capitol of Silicon Valley and recently re-located to Atlanta, GA. I spend time in both states. My career has been in real estate, finance, and SBA business consulting. I used to hold real estate Meetups in Downtown San Jose and cryptocurrency Meetups in Santa Clara. I have also lived and practiced real estate in Los Angeles and Sacramento. By next year, I will be hiring commercial agents in California and Georgia to expand my brokerage coast to coast!

Originally posted by @Dave Dash :

hi. I’d love to connect. I’ve been casually looking for a cash flow multiplex preferably in a market I’m familiar with. 

@Dave Dash competition is tough for multifamily in San Jose, especially for cash flowing properties. Let's connect and discuss what you are seeing in the market.

@Kimberly Lim SoCal is a beautiful area that attracts cash buyers who are willing to take on lower cap rates because there is no debt servicing. Out of state investing will allow you to purchase a higher class property that can be financed and cash flow. Let's connect!

Hi Eddie - 

My husband and I just joined BP, we've done 2 successful house hacks/flips in SoCal, with our recent one hitting the market in just a few weeks. Looking to downsize ourselves and reinvest profits... but as you know SoCal prices can make that difficult. We are in the beginning stages of out of state investing, but both type A business people looking to make genuine connections with others in the REI community. I reached out to connect with you, talk soon.

Thanks,

Lindsey

Hi @Lindsey Z. ,

Congratulations to you guys on your successful flips. Closing out projects like that is always exciting. The great part about being in the SoCal real estate market is that is prepares you for other markets that are easier to understand and navigate as an investor. I received your connection and will message you shortly.

Originally posted by @Shannon Mcveigh :

Hi @Eddie LeGrand-Sawyer! We live in Northern California and purchased a SFH rental a few years ago just outside Atlanta. It has worked out great this far. Stable tenants that pay on time. Good to know someone in the Atlanta market.

Hi @Shannon McVeigh,

That is great to hear that your out of state investment property is a success. Atlanta's market is in equilibrium. Tenants can afford their rent with a median income job and owners can build equity because investments still cash flow in the area. I hope everything is going well in Northern CA. Let's connect!

Are there any CA or GA restaurateurs on BP? This except touches on how to find the best location to open a restaurant.

"Restaurants are one of the most popular users of net leased real estate. In this article, we focus on the operator aspect of restaurants and how to make it easier for you to find a suitable location for your concept. The two obstacles that restaurants face when opening are zoning and tenant improvements. The simplest way to overcome these obstacles is to find a second generation restaurant space.

A second generation restaurant space is a unit within a commercial property, or a freestanding property, that was previously operated as a restaurant and is now available for a new tenant. What this means is that; 1) Your business permit to operate another restaurant will more than likely be approved by the City, which saves you tons of time, and: 2) There are existing restaurant tenant improvements like hoods, counters, seating, and restrooms already in place that you can utilize which saves you tons of money."