Why Do You Invest in Los Angeles? (Testimonial for BP!)

6 Replies

BiggerPockets! I work at BP and I'm working on building a landing page for Los Angeles. 

Would anyone be willing to share why you choose to invest in the city? What makes it so wonderful? Would you tell others to invest here, if they can? 

@Lauren Hogan

I invest in LA. There are so many reasons to invest here-high values, lack of supply, high rents, low caps. There are lots of reasons it’s hard-rent control, tenant’s right, cities that are anti landlord/anti development. Did I mention lack of supply and huge demand, weather, and industry?

@Lauren Hogan There is lots of opportunity for all stages of investors (wholesalers, flippers, developers) because there is that significant demand for housing. The cost of entry is difficult for a lot of people, but if you are able to creatively discover ways to break into it then the opportunities and growth are incredible. Living in the area and working in the area provides its benefits. I agree with the above, and didn't want to be redundant so just adding something a little different. 

Why do I invest here? I was born here, raised here, know the area and there are unlimited opportunities for real estate investors if you are willing to work hard and work smart.

Beaches, mountains, lakes, great weather, plenty of fun and local destinations, greatest food from around the world, and on and on.

Flipping, buy and hold, lending, notes, you name it, we got it.

That all said, nobody else should invest here, leave it to me, the completion is fierce enough already! Thanks.

I was born and raised in LA so know the good parts of zip codes.

I have never invested in a property with an assumption that appreciation will be a factor in the deal, however, I have been able to pay off all credit debt, school loans, and remodel homes with equity from appreciation. I have used refi's and HELOC's from Los Angeles properties for down payments on future properties. Cashflow does not meet the 2% mark but your cash on cash ROI can be infinite. FHA loans are also an option and I have used it to invest in deals (you have to make one unit your "primary residence")

The cons that I am looking at right now is finding a multi-property deal that makes sense. I am now looking out of state but if a deal makes sense in Los Angeles, I will jump on it. 

@Lauren Hogan good question! I invest here because of what’s been reiterated here already; High values, low stock, but most importantly investing in a hard market gave me a jump start to my own RE education. In one deal I was able to learn a complete picture of what RE investing takes to succeed. I doubt I would have received the same if I invested OOS. This market forced me to learn very quickly and adapt fast to not lose my deal.

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