All Forum Posts by: Garrett Crosby

Hi @Ali Mahdavi! I actually live in LA too and represent a lot of investors with STR here in Los Angeles.... funny enough though, I own a number of long-term rentals out of state, specifically in North Carolina. One of the units I'm planning on switching to a STR when the lease is up at the end of the year.

When it comes to cleaners (or anyone you would consider as part of your "team"), obviously being able to personally train or vet them in person is ideal... but when your team is out of state, I look to my property managers to be the most important component since they are the boots on the ground. A great property manager for STR will have terrific cleaners ready to roll. I would never want to manage a cleaning service myself out of state, so defaulting to the experts in the field to handle all of that for me is well worth the $$$. Ultimately, this lets me focus my time and energy on finding more deals or representing my clients, which is most important to me. :)

Happy to help you connect to out of state options or help you out here in LA if you ever need it! Cheers! 

Hey @Patrick Williams - congrats on trying to lock in your first investment! Exciting times!

I think @Karl McGarvey gave some great advice in terms of the money to put to the side. 

Have your run any of your numbers using the calculators provided by BP? I would make sure you use a solid calculator that can calculate variables beyond just expenses. Factoring in the market rents, taxes, insurance and other expenses will be key in giving you a full-picture. Your first deal won’t be perfect. A lot of learning will come strictly from experience. So be careful not to get yourself into analysis paralysis. 

If you have any questions or want to talk more, feel free to reach out to me. :) 

Hi @Michelet Polection - welcome to the community! :) 

One thing I would want clarification on which will make a big difference: you mentioned it’s a CHURCH/building. If it’s a church, you will need to get a little creative because often times places of worship have different laws that prohibit funds being allocated for assets outside of the organization. Talk to a really good CPA and a commercial lender to get an idea of what you can do or how you can get creative. 

I had a friend make a similar mistake assuming a church is just commercial real estate and they ended up getting in a lot of trouble with the IRS. 

State laws can also dictate different options available for you to… so I would 100% connect with local experts and unpack the details so that you set yourself up for success! Best of luck! :) 

I’ve done this one time. Biggest piece of advice - be upfront about everything. Sign an agreement that dictates everything ahead of time. My friend and I own a property in NC together, but we decided early on how we would manage ownership, property management, maintenance, etc. and put it all on paper. We had a real estate attorney look it over and then signed. 

Lot’s of “friends” will think that’s over the top, but it’s amazing how quickly friends turn into plaintiffs when money is involved. 

Good friends buy real estate together, better friends sign contracts and make it a business agreement. Don’t shoot yourself in the foot! :) 

Most of the comps I’m sticking with are within the last 3 months (as you pointed out). If the only comp is a mile away, that may not be a big deal - but I would make sure that it truly is a comp. (Same number of beds, baths, square footage, year built, condition, etc.) In this market, appraisers are really starting to tighten up on their reports. I would be sure to talk with local agents out there to get an opinion - or even look at listings that are comps as well. Take a look to see what the list price is, how long it’s been on market and whether it is pending or still active. 

Listings that have been on market for a long time indicate that they are overpriced (for this current market). I know this might be confusing, but I’m happy to talk in more detail or try to connect you with someone in your area if you need help! :)

Hi @Giancarlo Ameglio, thanks for the post on this. 

So really quick, as an investor/agent myself - I want to point out that the property may not be “worth” 1.3M. A property is only worth what the market dictates, and right now the market is cooling in most areas. That means that while it may be “listed’ at 1.3M, it may only be worth 1.25M - and better yet, you may be able to offer 1.2M and get it if what you said is true and the unit has been on the market for 4 months.

Here’s what I would do if I were you. I would partner with a great investor-friendly agent out there and put an offer in on the property for 1.2M or 1.58M and see what happens. Worst case scenario, the offer isn’t accepted… big deal! Honestly, take advantage of this panic market right now and make the numbers work for you!

This is a beautiful season we are in right now where buyers are starting to have some real “power” again in dictating terms. You might be able to lock this up for a great deal if you have the right agent and the right terms! 

Happy to connect you to someone in your market if you need help! Cheers. 

Hey @Britt Smith - great questions. I started investing out of state before exploring other options and did a ton of research on how to build a team before landing in Fayetteville, NC for most of my out of state investments. Here’s what I learned.

#1 Get a really great agent first. A great investor-friendly agent can connect you with the best contractors, property managers, inspectors, etc. for your out of state investments. Referrals are the only way to go in my opinion when you are dealing with property in a location that you won’t travel to frequently/don’t know the area very well. 

#2 If you have the opportunity to get a property manager, do it. I wouldn’t be able to scale up the way I have without having a property manager take on the tenant vetting, listing the unit, collecting rents, scheduling repairs, etc. I’m a big believer in them. Easily worth the 10%

#3 For full on rehabs, a property manager won’t be your primary contact. You will need to use a contractor if it’s a major project. I would advise you to make sure you really have an agent with a solid referral. Talk to other clients who hired them to see what their experience was like. This could be the difference maker on whether your property will ever cash flow, or if you will be dumping tens of thousands of dollars into a project that turns out to be a dud. 

Happy to support anyway I can! Also happy to pass on my team information regarding my properties in NC that cash flow 400-600 monthly. :) 

I think this is a lot more market specific. As an investor agent in LA, here’s my thoughts.

#1 Check comps in your market. Do a deep dive to see how your STR compares to others (and I'm not just talking about rates). Compare photos, locations, cosmetics, furnishings and check your reviews. (I'm assuming they are good, but if not, that can be a factor too).

#2 Fall tends to be a slower travel month for a lot of folks due to schools being in full force. There may be some truth to people being a little more financially fiscal in the current climate too, but I haven't seen much evidence of that in STR's (yet).

#3 This is a good lesson for anyone looking into STR's though. Picking markets that are more heavily populated are important for moments like this. :)

#4 Ultimately, you may have done everything right and may be in a populated market too…. In that case, you may have to start thinking as I do as an agent. It may be time to start thinking about new ways to market your unit. Creating landing pages, doing more social media posts, building a website, purchases SEO/google ad space, etc. 

Just remember that at the end of the day, if you can learn to survive in the coming market conditions (and even better yet, flourish in them), just imagine how much better you will be when things get “easier”. :) 

Love this topic. Feel free to check out my accounts for content ideas from an agent/investor below:

@crosbyshowhomes (on Instagram & tik tok). I also have a facebook group I started to utilize as a pipeline for future buyers, sellers and investors. I do combine my pages because I am after creating authentic relationships and want to share my passion with people, whether they are investors or not! :) 

Here are my tips though:

#1 Define what your purpose is with social media. What audience are you trying to capture?

#2 Once you define your audience, focus on creating content that adds value. So for me, I rarely post “listings”. Instead, I teach people how to run numbers, how to write better offers, how to create better attracting for their personal listings, how to start investing, etc. Basically, I’m way more focused on providing value than I am about anything else. I will also post numbers from my own investments, I share my mistakes, I share my successes, and I celebrate client success stories. 

#3 Be authentic - something I learned earlier in my career is that pretending to be someone else is never going to generate more business. There is a big difference in copying someone’s SYSTEMS vs. copying someone’s persona. I have found that having authentic videos, showing my face and letting the imperfections come through build stronger relationships with my online community. Sure, you may not like how you look on video, but people are way more likely to watch your content and follow you if you show your face and have video rather than just cool graphics. 

Ultimately, you need to know your market. Be careful not to divide followers among a number of pages. Develop content that appeals to the group you’re in, create FB groups that appeal to certain buyers/sellers/investors, network, connect and stay consistent. If you follow this pattern, you will find success! 

Let me know if you want to talk more or have any questions about the LA market and how I apply this here. :) 

Hey Jacob - first of all - mad props that you are 16 and starting to think about this. Stick to it, build routines and you will be a millionaire before you know it. 

Onto your questions: where to find deals. Deals are everywhere, but knowing what to look for is what defines a deal. You can find deals on all common MLS shared services (Zillow, Realtor.com, Redfin) That being said, here is my advice - especially for someone at your age and stage!

#1 Read. Read the amazing books that exist that talk about investing in real estate. Learn as much as you can. Listen to podcasts, attend networking events, listen to audio books - but above all else, read!) 

#2 Pick a strategy - deals are defined by how they fit a certain real estate strategy. Find a strategy that excites you and fits into the column you have more of (time vs. money). Most young investors have more time than money. Spend that time to find deals and build partnerships with investors who can bring the capital. Split the investments, build your capital and then start doing deals yourself! 

#3 Consider house hacking. If you can, especially at your age and given the current market conditions, FHA loans are becoming more and more accepted by sellers. Buy a property, rent out the rooms or other units to tenants. Live for free, reinvest what you would have spent on a mortgage. Wait a year, then move out of your unit, rent it out to a tenant, use another FHA loan and do it again. Wash and repeat as long as you can/want. Build units, live for free, invest your money, grow your portfolio. :)

If you want to talk more or have interest in the LA markets, I’m happy to chat anytime! Good luck!