All Forum Posts by: Jon Schwartz

I don't know your local market, but I've heard room-renters have a lot of success on facebook marketplace. Not only is facebook more conducive to finding "roommates," but you can quickly quick out a person's profile to get a sense of who they are. That might save some time in the screening -- just don't discriminate against any protected classes!

@Mark Futalan, that’s what I’m saying!

I believe it’s explained in the instructions attached to the application. I remember it being pretty clear. I hope I didn’t do it wrong!

@Mark Futalan, I mailed in my application two weeks ago!

The broker information on the exam/license combo application is optional. You don’t need to be attached to a brokerage already.

The advice I read was to do the combo app to save some time. Otherwise, you have to wait another few weeks after taking the exam to mail in your license application and get it approved.

I did the combo application with the broker info blank.

Best,

Jon

Don't be afraid to call agents! They want your business.

I'm invested in a small portfolio of duplexes in Indiana, but outside of that, I'm entirely focused on LA County. I think the wealth-building potential here beats any out-of-state market. I'm not in need of side-hustle income at the moment, so I'm using real estate to build equity and net worth. Down the line, when I want to retire early, I'll convert that LA equity into more cashflowing assets in other markets. That's the plan.

What about you? What are you goals in getting into real estate?

Ismael! Excited to hear that you're jumping in!

Two things to keep in mind:

Firstly, we're in an unprecedented moment for the economy. It is pretty incredible that most housing markets are soaring while unemployment is over 10%. Who knows what will happen in the winter and 2020. Just know that this isn't usual!

Secondly, Socal is a really unique market. You'll hear about a lot of strategies on the Bigger Pockets podcast that just don't work here. This is a high appreciation, high rent market -- and you have to adjust your strategy.

I'm in investor in LA if you ever want to talk shop!

Best,

Jon 

@Mike M., I’m in a similar boat and really like the looks of Fathom. Check them out.

OC, baby!

There's definitely a point in trying to time the real estate market if you're an investor.

Three important differences between the real estate market and the stock market:

Firstly, the stock market is totally liquid, whereas real estate isn't. Ergo, the real estate market moves much more slowly that the stock market. It's not as much of a fool's game to time it.

Secondly, the stock market is typically a leading indicator of the general economy (though WTF is going on now???). The real estate market general lags the broader economy. So whereas you have to be clairvoyant to time the stock market, you need only be wise and observant to time the real estate market.

Thirdly, when you try to time the stock market, you really have to be right twice: when you buy and when you sell. With the real estate market, if you're a longterm investor, you really only need to buy right or sell right. Both will be even better, but getting just one right is worth a lot of dough.

Regarding timing, I say wait. The real estate market is crazy hot, and the general economy isn't responding to our 10% unemployment the way it has before. Why? Huge government stimulus, eviction moratoria, and forbearance programs. I'm a believer that the party is going to wind down eventually, probably mid-2021, and we're going to see some economic pain. Most likely not a crash because home-owners have much more equity in their homes than they did in 2008, but a "normal" recession and a dip in prices. So I say, take your time...

Something else to pay attention to is that single-family homes and multifamily properties are not the same thing. The SFR market is blazing, but is the multifamily? It's more Eddy steady, from what I understand. In fact, I would expect more softening in residential multifamily in the coming months as CA's eviction moratorium is extended and mom-and-pop landlords decide to call it quits.

Also, with $150K and a 10% down loan in Orange, you can definitely afford to get in the market now.

Have you built enough equity in your duplex to refinance it get some cash out? If not, I imagine a HELOC is off the table, too.

Where in Socal are you? 

You nailed it, Jack!

Mason, if I were in your shoes (and I wish I were!), I'd househack a duplex where you live.

Generally, you're going to be trading equity growth for cashflow. Markets with good cashflow don't appreciate as well, and markets (like Socal) that appreciate well don't produce as much cashflow. Since you're so young, I highly recommend you focus on equity and net worth now. These are the builders of wealth.

You want cashflow while you finish school, which I understand. However, a smartly chosen duplex will lower your monthly living expenses -- which provides the same effect as a couple hundred dollars per month of cashflow. And, while you're enjoying that reduced cost of living, your tenant is paying down principal, adding to your net worth every month. AND there's Socal appreciation going on.

Anyway, my two cents! Where near LA are you?

Also, Austin is a good pick because, unlike a lot of other Texas markets, it's an appreciation market. You won't find much cashflow there, though!