Hi bigger pockets!
Would love some guidance and advice. I am a realtor and new investor. I own a duplex in which I live in and recently refinanced to take cash out to invest in something that would generate me consistent cash flow. Being that
the properties are so overpriced here in Los Angeles, without a partner, I don’t think that the money that I pulled out is enough to do much of anything. Wondering how I should use this cash? Any suggestions?￼
Invest in a private mortgage. Find a mortgage broker in tour area who specializes in private mortgages. Passive income with good security.
@Jim Pellerin , I’m not sure what is. Can you give a short summary based on your knowledge ?
What’s the smallest investment you’ve seen in that and it’s rate of return ?
Thanks so much,
A private mortgage is where you become the bank. You make a loan to someone else. That loan is secured by a mortgage on a real property. The interest can be anywhere from 8% to 15% depending on the borrower and the property. I've seen private mortgages range from $10k to $500k.
@Jim Pellerin got it! Thanks , Jim.
Great suggestion . Will dk more research .
Hey @Daniel Howard , I feel ya. I live and work in LA and I'm looking to invest but the market is so overpriced it makes me want to cry on the corner. Have you thought about looking outside of LA County? San Bernandino County, Ventura County and Riverside County still has some pretty decent prices. Do you want to invest in SFR? Multi-Unit? Do you want to be active or passive investor. Lots of different ways depending on what you want.
I've heard that area is expensive, going outside your city for investment property would be best. Or do a different investment strategy like mentioned before.
@Vanessa Ganaden , I would like to become more aggressive. I don't have much money, south of 100k, but still, enough to make something off of. I am not big into flipping, would be much more interested in creating cash flow, so more of a buy and hold type of investor. If the right opportunity for a flip comes up, i'd be interested in going in with a partner.
@Caleb Brown , I would LOVE to look out of state, but I am fearful that me not living there could create a problem.
Do any of you have experience in investing in areas outside of los angeles and your success?
I’m located in the Kansas City. I haven’t personally invested out of state since the market is good here. I do work with out of state investors so that’s how I have experience with that. Biggest thing with them is finding local experts and professionals with their heart on the market. There are scammers so always do due diligence on the market and professionals
How about applying for a FHA loan and use that money as another downpayment for a decent SFR/soft duplex in San Bernandino/Riverside county? you wont be getting the aggressive returns as other investments but rome wasn't built in a day ;)
Invest in a fix and flip.
% of profits is a lot more lucrative.
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