All Forum Posts by: Account Closed

@Par Attaran

With high returns comes high risk.  I believe you can open yourself up to get taken advantage of.  For instance if a person comes to you promising the rate of return you desire you may invest without doing due diligence.  To answer your question that rate of return is doable but unlikely starting out.  

@Logan Allec

A friend of mine was homeless after she could no longer pay the rent.  She volunteered to leave if she got her deposit back & no eviction on her record.  Her baby was a few months old when this happened.  There are shelters available she Went to in Los Angeles that took her in.  I don't own rentals but I'm a mother of 2 so I have extreme compassion for her situation & don't envy you.  I would offer to refund her deposit in full & if possible put her up in a cheap hotel in the area for a few days so she can call public services if she needs to.  You can't put a price on compassion and any of the other posters that said separate emotions business is business I ask them to take a newborn and put it in the street & then go to sleep at night.  In this world you get what you give.  Good luck 

@Mitchell Rubinstein

I wanted to become an investor & learn the business without a large amount of time commitment. I became a private lender for a rehabber in Los Angeles.  Perhaps you could find a rehabber in Glendale & partner with them where you fund part of the project in return for part of the profits.  The time commitment is in the front end-analyzing the deal, meeting with your attorney to make sure everything is recorded properly etc.  it's the best return on my time that I've found.  Good luck.

@Chris Cavner

I partnered for the following reasons.  I don't have the experience needed to go it alone.  Los Angeles is so expensive that I need to partner with others with capital.  I continue to do equity joint ventures (ejv) where I take a percentage of the profits.  That said I don't know what you want to do.  If you're thinking of buy and hold its ok to go it alone and pay an advisor to help you.  

Good luck

@Dan Fulghum

First I think this post belongs in the marketplace as its a solicitation.  That being said I'm a private lender and I would not want to be involved in this for the following reasons.  If you have 22 years of experience why not go to the people you've done business with in the past?  If you're truly successful as you claim then you're investors must have made a lot of money with you and can't wait to invest again.  Second all of my transactions are win win.  I only work with flippers who want to pay private money going rates or above.  Conversely I want the flipper to make a lot of money so we can do another deal.  Here is an example.  I'm going into my fourth deal with a rehabber.  I will be investing $600k in the next few weeks.  The reason I have $600k is partially due to him making me so much money.  Win win is the best way to go.  Good luck

@Conrad Metzenberg

California investor here.  I struggled with the same problem as you so here's what I did.  I found a local successful rehabber in Los Angeles.  I brought money he brought money and experience.  No way would I take out a heloc & invest out of state unless I knew the market.  Some of the people responding are turn key marketers Hoping their opinions will guide you to their website and you will purchase their products.  Why not find a flipper in Santa Barbara and partner with them.  Or find a value add apartment building and put a larger down payment so it will generate cash flow.  

These are my returns.  13% plus a point for debt.  18% plus for an equity split.  First position only. 

Good luck

Terrible deal.  

@Zana Blue

You obviously have a good moral compass.  I would say go for the property.  The fact that this investor is asking you to step aside is not realistic.  He is trying to personalize a situation that shouldn't be personalized. It's just a random property in the scheme of things.  If 5 other investors bid on the property is he going to tell them the same hard luck story so they step aside? Highly improbable.  Besides a first time investor chances are he will overpay make other mistakes and somehow lose money on his first investment.  Let your internal compass guide your actions.  Besides tough competition makes an new investor better or makes them realize this is not a business for them.  

Good luck

@Kaygo Haga

While I can't recommend whether you should or shouldn't invest in real estate, I can share my experience. I converted my IRA to a SDIRA. No taxes or penalties. I use it to private money lend. Although I'm still learning, my returns have been better than investing in stocks. As for consulting your "financial advisor" if they are in the position to sell you something (stocks, mutual funds) they are going to advise against it. They would lose the commissions they make off of you. I would consult an unbiased 3rd party such as a CPA.

Good luck