Attorney · Fairfield, CA · Member since 2018 · 19 posts · 3 votes
My name is Jerome and I'm starting out in California. I'm busy reading and learning and planning. I have tons of questions and look forward to the awesome feedback that is available here on BiggerPockets!!
At this point, any advice on key or important first steps to take would be appreciated
Start an LLC now?
First property/strategy to start out with?
Any other ideas or plans to implement immediately.
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
Welcome to BP @Jerome Hawkins! There are tons of resources here and I'm sure you will enjoy them. What strategy is of most interest to you? Keep learning and growing.
Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
8y
figure out your budget, then figure out your goal.... it'll likely take you out of state.
With rare exceptions you probably don't need a LLC, if you set one up you're paying 800 to Franchise Tax Board in addition to the other requirements...
But know your budget will be the biggest influence of all this... it's extremely hard to find deals w/ out putting money into them.
Attorney · Fairfield, CA · Member since 2018 · 19 posts · 3 votes
8y
@Dan Barli thank you!! I’m excited to be on here learning and taking action. Strategy is to start with flips to build cash and then move into rentals for passive income over time. Thoughts?
Attorney · Fairfield, CA · Member since 2018 · 19 posts · 3 votes
8y
Thanks @Matt K. I’m studying the pros and cons of LLC formation in general for longer term liability protection. I’ll take your advice into consideration. Especially with regard to budget!
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
That sounds like a good strategy @Jerome Hawkins. How do you intend to finance your flips? Have you started to build your team out? What markets are you looking to perform the flips in?
Attorney · Fairfield, CA · Member since 2018 · 19 posts · 3 votes
8y
@Dan Barli I intend to start with hard money and/or private investors. Had some bad years financially and I'm working to rebuild credit at the moment as well. I make a pretty good salary at my day job, which is helping with that.
As far as my team, I'm getting on that as well. What are key team members to acquire at this point??
Still looking at markets. Starting in Northern California, then expanding to out-of-state most likely over time.
Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
8y
I'm glad to hear you are rebuilding @Jerome Hawkins! If you are building your team, you will need to have a good sourcer (realtor or otherwise), but it sounds like you're going to build more with lenders and investors. Have you been to any local REIA meetings? You can connect with some good people there.
Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
8y
@Jerome Hawkins Hmm, good question since I don't have any properties in NorCal..... I ended up going out of state to Nevada since my strategy is buy and hold rentals with a good combination of cash flow and appreciation potential, and I thought California was too high priced vs the amount of debt I was willing to take on. I tend to be conservative with my use of debt so it just worked out better for me.
You had mentioned you wanted to start with flips... have you looked around in the Bay Area for possible areas to target based on your budget? It's pretty pricey over in your area so that could limit your options to some degree.
Attorney · Fairfield, CA · Member since 2018 · 19 posts · 3 votes
8y
@Account Closed You're pretty much keying in on some of my primary concerns. CA is so expensive in terms of property values and cost of living. That may make it tough, but not impossible! That being said, I am also considering out-of-state investing as well. I'll need to study up on that as I move forward.
In terms of areas in the Bay to invest, I'm beginning to look and identify those now. I'd like to create a system to rank different geographic areas based on certain key factors. This will also help me get an idea of what budget I'll need to get things going.
Rental Property Investor · Las Vegas, NV · Member since 2018 · 133 posts · 171 votes
8y
@Jerome Hawkins Well as you get further in your research if you find the Bay Area isn't going to work Sacramento might be an option for you. Sacramento is getting a lot of the outflow from Bay Area people looking for better pricing which has pushed up demand quite a bit over the last few years. I think you can still probably find deals here, and not quite as expensive as the Bay Area.
Attorney · Fairfield, CA · Member since 2018 · 19 posts · 3 votes
8y
@Account Closed That is great information. And it makes sense. There are actually several areas that are turning and growing as people head north and east to find homes. I will definitely keep that in mind! Thank you so much. If there's anything I can add or contribute, please let me know. I'm actually living in Fairfield at the moment.