New member from Torrance, CA

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New member from Torrance, CA

Stan Esperon
Torrance, CA · Member since 2015 · 29 posts · 3 votes

Hi all. My name is Stan and I've been on BP for a few months now. Its been absolutely amazing. I've also attended a couple of BP meetups. I've learned so much but realize there was actually so much more that I didn't know. I am 42, married with 3 kids and work full-time for LA County. My goal is to be able to leave my job in 8-13 years if I could replace my income with REI. I still am trying to focus in on what my rei strategy will be as its shifted with each forum post and blog I read, or webinar I listen to. Definite analysis paralysis. I am interested in buy and hold rentals in the Southern California area and considering investing in Big Bear, Coachella Valley area, Bakersfield and South LA. I am also interested in learning more about syndication, parterships and passive investing. Any advice and guidance for a newbie like me is greatly appreciated.

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Michael Lee
Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
10y

 Hello and welcome to BP!  Buy and Hold is more of a long term investment but that depends on what kind of positive cash flow it has.  This is a great site for learning and asking questions to those that may have been down that road.  The first couple of things you should do besides learning is to start your business under a type of corporation to help protect you personally and to find/get a local Team put together.  The main members are Attornies, real estate Agents, CPA's (or accountants), Inspectors, General Contractors, and Handymen.

Always do the analyzing numbers and try to look at the property before you make an offer or at least have a clause in the sales contract that gives you some time (about15 days) to inspect and possibly to back out of the deal without a penalty that exceeds your earnest money put up.  Right after you close get an insurance policy that will protect you if there is a loss.  As soon as you can after the closing replace the exterior door locks. If the locks you took off are still in good shape just use them at a new address.

I am 59 years old and I found BP about 8 months ago and I am still learning and deciding what to do while I am recovering from a brain annurism and a stroke.  I went to college, not that it is mandatory, and I got a business degree that emphasized real estate.  Since I was in Texas and planned on staying there I found out that I was qualified to take a test and become a licensed real estate broker and I became one.  I kept that license for about 30 years.  I did close a few deals for other people.  I have only closed one investment property.  Regardless of what I had I felt more comfortable with the construction business.  I have been in the construction business since I was 17  including those college years.  If you think that I can help you please contact me through BP at any time.  Good luck to you!

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  • Dave VisayaPro Member
    Moderator
    Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
    10y

    Hey @Stan Esperon, welcome to the site! Here are some good places to start: http://www.biggerpockets.com/meet- find and connect with other BP members that are in your area.

    http://www.biggerpockets.com/alerts - Set up keyword alerts to be notified of the topics that interest you.
    And, of course the
    http://www.biggerpockets.com/forums - ask any question about real estate!
    See you around!

    BiggerPockets
    1Reply
  • Michael Lee
    Investor · Coppell, TX · Member since 2008 · 2k+ posts · 646 votes
    10y

     Hello and welcome to BP!  Buy and Hold is more of a long term investment but that depends on what kind of positive cash flow it has.  This is a great site for learning and asking questions to those that may have been down that road.  The first couple of things you should do besides learning is to start your business under a type of corporation to help protect you personally and to find/get a local Team put together.  The main members are Attornies, real estate Agents, CPA's (or accountants), Inspectors, General Contractors, and Handymen.

    Always do the analyzing numbers and try to look at the property before you make an offer or at least have a clause in the sales contract that gives you some time (about15 days) to inspect and possibly to back out of the deal without a penalty that exceeds your earnest money put up.  Right after you close get an insurance policy that will protect you if there is a loss.  As soon as you can after the closing replace the exterior door locks. If the locks you took off are still in good shape just use them at a new address.

    I am 59 years old and I found BP about 8 months ago and I am still learning and deciding what to do while I am recovering from a brain annurism and a stroke.  I went to college, not that it is mandatory, and I got a business degree that emphasized real estate.  Since I was in Texas and planned on staying there I found out that I was qualified to take a test and become a licensed real estate broker and I became one.  I kept that license for about 30 years.  I did close a few deals for other people.  I have only closed one investment property.  Regardless of what I had I felt more comfortable with the construction business.  I have been in the construction business since I was 17  including those college years.  If you think that I can help you please contact me through BP at any time.  Good luck to you!

    2Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Stan Esperon

    Welcome to the site! The BP website as you commented on is very helpful and the meetups are another source of information that is very good to grow your knowledge of real estate investing! 

    Those are some interesting areas to invest, what was the thought process on those areas that made you decide to invest there? The area that you mentioned that I have the best knowledge in is Big Bear, that area would have a big upside if you invested in a cabin and used it for Airbnb rentals. That would be huge!! 

    Good luck and I hope all goes well! 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @ Dave Visaya . Thank you for the welcome.

    @Michael Lee . Thanks for sharing your story. My father was a real estate broker after retiring from the navy but it never really interested me in my young adulthood. I became more interested in my 30s and actually have my RE license too but the full-time job, 3 kids and the housing bubble were enough to distract/scare me from ever doing anything. It was only after finding BP that I feel that REI is now a realistic part of my future.

    @Peter Mckernan . Price point and wanting to start more local are the reasons for the areas I listed. I also know I need to focus in on an area. I love big bear area and have a couple of acquaintances who have vacation rentals there. Over the summer, I plan to go to open houses in all the areas. Any advice, guidance you can share about BB and vacation rentals would be greatly appreciated.

    0Reply
  • Leslie Pappas
    Professional · San Francisco, CA · Member since 2014 · 876 posts · 301 votes
    10y

    Welcome @Stan Esperon, good luck on your journey.

    0Reply
  • Jack Butala
    Los Angeles, CA · Member since 2014 · 2k+ posts · 515 votes
    10y

    Hello @Stan Esperon and welcome to BP. BP is a great place for all things real estate. At BP, not only can you network with other investors, you can get great information on real estate. You came to the right place and I wish you all the best.

    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    thanks @Leslie Pappas  and @Steven Butala for the welcome!

    0Reply
  • Sydney Hall
    Home Stager · San Luis Obispo, CA · Member since 2016 · 312 posts · 49 votes
    10y

    good morning stan, welcome! newbie here too. just wished to introduce myself. formerly from washington, dc, i'm just getting started in the staging arena in california and i'm looking to make some connections as well. thanks and sincerely, sydney

    0Reply
  • Jeff Graves
    Investor · Fort Worth, TX · Member since 2016 · 107 posts · 62 votes
    10y

    @Stan Esperon Welcome to BP!  I'm still fairly new at BP but there is good dialogue that occurs on here...it's well worth the time to be on the site.

    Aloha

    Jeff

    0Reply
  • Kaitlyn Masai
    Phoenix, AZ · Member since 2016 · 15 posts · 5 votes
    10y

    Hi Stan, I'm also a newbie from Torrance. Welcome! I've settled on buy and hold investing because it seems like the most stable of the forms of investing. But my goal is to fund my retirement rather than to leave my job. I'm sure that your path will become more clear as learn more about investing and returns. That's been my experience anyway. Good luck!

    2Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    Thanks @Sydney Hall and @Jeff Graves for the welcome.

    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @Kaitlyn Masai Good to see another Torrance person respond to my post. Have you figured out what area/type you'll be targeting for investment property? So expensive to invest in the South Bay. 

    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @Dave Visaya  . Thank you for the welcome.

    @Michael Lee. Thanks for sharing your story. My father was a real estate broker after retiring from the navy but it never really interested me in my young adulthood. I became more interested in my 30s and actually have my RE license too but the full-time job, 3 kids and the housing bubble were enough to distract/scare me from ever doing anything. It was only after finding BP that I feel that REI is now a realistic part of my future.

    @Peter Mckernan . Price point and wanting to start more local are the reasons for the areas I listed. I also know I need to focus in on an area. I love big bear area and have a couple of acquaintances who have vacation rentals there. Over the summer, I plan to go to open houses in all the areas. Any advice, guidance you can share about BB and vacation rentals would be greatly appreciated.

    @Dave Visaya

    0Reply
  • Kaitlyn Masai
    Phoenix, AZ · Member since 2016 · 15 posts · 5 votes
    10y

    @Stan Esperon Yes, it is really expensive. I haven't nailed down a place but I'm leaning towards Torrance or Redondo Beach. I'm going to house hack, probably by buying a multi-family and living in it. I've been told by local investors that this area is profitable by appreciation and not really cash flow. I see local investing as a way to get good hands on experience first and then I may branch out to out-of-state investing for cash flow.

    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @Leslie Pappas @Jack Butala

    Thanks for the welcome! Sorry for the double posts. I want to make sure that the BP Members who responded to my post knew that I appreciated it.

    0Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    Hey @Stan Esperon

    Those are good reasons. I know that areas close to the resorts are the best, Sugar Loaf as an example. I would stay away from getting something so far away (i.e. Baldwin Lake, Fawnskin).

    Those are some thoughts and some tips to stay close to capitalize on the weekend, or summer vacationer. 

    The McKernan Group4.957 Reviews
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    1Reply
  • Judy Rae
    Lender · Sherman Oaks, CA · Member since 2014 · 68 posts · 80 votes
    10y

    Buying and holding is great as long as you buy right and have the lowest interest rate you can get. Rates depend on who is offering them but 7.9% - 12% is what you will hear from various people.

    I am a lover of vacation rentals.  I have a few properties I rent by the week.  One in Fort Lauderdale and one in Palm Springs.  I will give you an example of why I say I love vacation rentals.  

    My Lauderdale property is a direct oceanfront with 2 bedrooms and two baths.  If I would have opted to rent it unfurnished I would get somewhere in the range of $4,000 per month. Instead I opted to furnish it and rent weekly.  I get $2500.00 a week during peak season and $1,500 a week during the off season.  It is virtually never empty.  You do the math!

    You just need to be sure to buy in an area popular with people going on vacation.

    1Reply
  • John D.
    Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    10y

    Welcome @Stan Esperon.  Big Bear and Coachella Valley are great markets for buy and hold vacation rentals.  You might find some decent long-term buy and hold in Coachella Valley in some C or D markets as well, if you are willing to work in some rougher areas.

    1Reply
  • David Varvaro
    Lender · Hermosa Beach, CA · Member since 2015 · 70 posts · 32 votes
    10y

    Welcome @Stan Esperon. There are definitely a lot of different approaches you can take.

    I work with investors in the South Bay and there are still some buy and hold opportunities using the BRRR strategy in some pockets of Lawndale, Gardena, and Hawthorne but they are far and few between. Plus you are looking at a lot more out of pocket than in some of the other areas you mentioned.

    Recently, a few investors I know have purchased MFs in Desert Hot Springs and Cathedral City. They were at a fairly low price point (for California) and they do cashflow. They are definitely in C markets so not sure what type of headaches they'll be looking at since they just purchased them but the numbers do work.

    As far as vacation rentals, I agree with @Judy Rae. You can make so much more than just renting to a long term tenant. This is something I have been researching myself. The key seems to be buying in the right place where you are still able to rent your place out in the off season. Prices tend to be higher in the more desirable areas and you have to furnish the place so that's something to think about but the upside is you can stay in your own place when it's empty - something you probably would never do with any of your long term rentals.

    Good luck with your research!

    1Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @Judy Rae . Thanks for your response. What about your PS property? I imagine there is probably a bit higher vacancy, but still a year round destination especially if you have a pool.

    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @John D. Thanks for your response. In looking at your profile I can see you've got a lot of experience in this area. Helps affirm I'm on the right track. I know i've got more research to do and will look into the C/D markets. Not sure I've got the stomach for it, but will at least take a look at it.

    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @David Varvaro . Thanks for your response. Hope to connect with you in the near future.

    0Reply
  • Andre Nainggolan
    Realtor · Bakersfield, CA · Member since 2016 · 12 posts · 1 vote
    10y
    Hello Stan Esperon , welcome to BP. I'm new myself and looking in the same areas and currently in the Bakersfield area. Let me know if I can help you in any way!
    0Reply
  • Stan Esperon
    OP
    Torrance, CA · Member since 2015 · 29 posts · 3 votes
    10y

    @Andre Nainggolan . Thanks and sounds good.

    0Reply
  • Judy Rae
    Lender · Sherman Oaks, CA · Member since 2014 · 68 posts · 80 votes
    10y

    Yes summer in Palm Springs is not nearly as busy but I make enough from Nov to April to make my mortgage ( hard money ) payment for the entire year.  And when it is not rented I have a retreat with a pool go to anytime I like.

    0Reply
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