Aliso Viejo, CA · Member since 2016 · 9 posts · 4 votes
Hi everyone, I just joined BiggerPockets Pro I am finally taking steps to become a Real Estate Investor. I"m based in Southern California (South Orange County). I've been thinking about doing something in real estate investment for years and like everyone else I've been on blogs and webinars and read a ton of books. I've had my Real Estate license in the 80's so I know a thing or two. I've got cash to invest and my goal is to retire from my 25+ career in software with at least $1M within 7 years. I've always felt that going after multi tenant properties with a solid cashflow would be a good strategy (Buy low, improve the property, then sell high). Southern Cal may be challenging because of high prices, but the rents are high too, so maybe not so hard...anyway I need help getting started so I'm really glad I found BiggerPockets and I'm hoping all you pros can point me in the right direction.
If you would like to chat before then and talk about investing let me know. I am in Mission Viejo and can get together at my local Starbucks. Your ALL in cost is only a cup of coffee.
I am currently flipping homes in Orange County and teach others how to do so as well. I started a wholesaling group and spend my Saturday mornings with them.
I am looking for my next purchase at the court house steps, while I am working on a few more.
@Blake McCoach Hi Blake. Looks like we have a few similarities. I'm in your neck of the woods, Laguna Niguel, and hang out in Aliso Viejo a lot (only sizable and nicer town center around town :) I am also a software engineer working full time in San Diego. Also contemplated getting into REI for some time until finally I did around July of last year. BP got me started. I was on it day and night until I met pros like @Joe Homs in meetups, who've been and are to this day great mentors and educators. I'm now on my third rehab and I'm loving it, although it doesn't come with sleepless nights sometimes.. :-)
Hello @Blake McCoach. Sounds like you have a good idea of where you want to end up. I currently flip homes mainly in LA and Orange Counties. I want to eventually get into buy and holds but I'll keep flipping for now. Feel free to reach out for any questions you think I can help answer. Take care and good luck!
Thanks everyone who responded to my post. You all had very helpful suggestions and I appreciate it. This is very cool that there are so many people in my area. I'm looking forward to figuring out how to do my first purchase. Upon further reading I realize I need to eventually have 25 to 35 rental units which is a bit overwhelming when I think about that, but that's how goals work I guess.
I feel like I have the concept down, I'm just wondering how to find my first deal and should I just do a single residence or a multifam? Seems to be more bang for the buck if you do multifam.
If anyone has any advice on how to spot the "deals" (20% to 30%) under list.
I would say you should look into multifamily deals. It is hard to get the SFR's to cash flow well. Commercial properties can cash flow even better than small residential multifamily properties. I have a few clients right now looking at cash flowing multifamily's in the San Bernardino County and Riverside County. Would be happy to chat with you more. Feel free to give me a call or send me a PM directly!
@Blake McCoach Welcome to BP! There's a lot of great information on BP. You'll hear from people that are sold on "cash flow" and basically consider appreciation as icing on the cake. The truth is, it's like the old adage "all real estate is local".
Using your location as an example, look at the difference in property prices on the ocean side of the freeway vs. the east side. There's a limited number of properties on the ocean side, therefore; higher appreciation along with higher prices. However; if someone is looking for square footage, the properties on the east side of the freeway are the way to go.
The point is, knowing the markets where you want to invest is important, because little details can make a huge difference.
We just sold a house on Calle Redondel in San Clemente. Not knowing the area well, we believed that the lot being on the ocean side of the freeway, with stunning ocean views from both levels of the house, a new home, large lot, etc would insure high pricing. What we didn't realize is that the north beach area of San Clemente had its challenges. We ended up selling for a record price per square foot, but it still wasn't as high as it should have been. Lesson learned.
We are however; still in that market, finishing up 2 units on Avenida de la Grulla, and a house in Capistrano Beach, both of which are getting a lot of interest already.
Hello @Blake McCoach, Welcome to BP! What a great website to be a part of. I help and show people how to use some of their savings to create streams of income through multi-family cashflowing assets. All of my units are in Indiana. It seems to be harder than most markets in South CA to find cashflow deals. If you are looking for cashflow, other east coast markets like Memphis, Cleveland, Indianapolis and others will do jus that. On a side note, get a great property management company! Would be more than happy to connect. Talk soon!