All Forum Posts by: Joshua McGinnis

After liking the BiggerPockets Facebook page, this was one of the first interesting articles to pop up on my newsfeed.

The house looks great! It's amazing to see the affects a coat of paint over the brick can accomplish.

I'm a big believer in the 90% rule of rehab (make your improvements appeal to 90% of people, 90% of the time). I wouldn't be surprised if this didn't appeal to closer towards 100% of buyers in your price range/location.

Are you planning your next one?

Thanks everyone.

The site works, but it takes work to make it effective. You must be willing to put yourself out there, talk with people, meet with them, and do your best to form meaningful relationships. Also, be OK and embrace your lack of knowledge in all areas of the business - I find most individuals are more than willing to help you close the knowledge gap.

Also, @Joshua Dorkin and @Brandon Turner are geniuses. They've managed to create a site that attracts similar minded people and somehow fooled us all into generating the great content they need to keep the site relevant and growing! :)

The Los Angeles market is interesting in that there is a very real push/pull between people's own preconceptions about what it means to live in certain parts of the city. In doing so, I see people create what I believe to artificial barriers to investing here.

Granted, everyone has their own needs and wants, but in my opinion, if you can get over not needing to live or invest in the more trendy affluent areas, there are some opportunities to be had for those who love SoCal and want to lay down some roots in this city.

I see several markets in L.A. that are a little more friendly to the newbie investor, first-time homebuyer, or a buyer who loves the city but doesn't have the funds to buy a $1MM+ home in the Hollywood Hills, Westwood, Santa Monica and the like.

With the Metro extending out down Wilshire all the way to LAX, the revitalization of the LA River, 94+ new developments in Downtown LA, and rising rents, I speculate a lot of growth opportunity in the historically working-class neighborhoods.

Here's a little bit of historical sales data I pulled together this morning from the MLS for some of my investor friends/clients. I tried to include a few neighborhoods that I see as prime targets for revitalization and gentrification in the next ten years (as well as some high-end markets for comparison).

I find the data really interesting (especially seeing the housing crash/recovery).

I'd be curious to know from other SoCal folks and Los Angelenos what your thoughts on the data and if you've had success by venturing out of your comfort zone into some of these more up-and-coming neighborhoods.

Downtown / Metropolitan LA: Single Fam + Income + Condo
(Year - # Sold, # Avg. Selling Price, Avg. Days on Market)

2014 - 81, $412,157, 68

2013 - 919, $471,932, 63

2012 - 1160, $373,383, 83

2011 - 1066, $291,117, 85

2010 - 1035, $284,647, 81

2009 - 981, $271,481, 84

2008 - 542, $462,373, 82

2007 - 463, $609,782, 77

2006 - 422, $594,515, 71

2005 - 479, $510,110, 51

Inglewood: Single Fam + Income
(Year - # Sold, # Avg. Selling Price, Avg. Days on Market)

2014 - 29, $387,370, 64

2013 - 386, $450,723, 68

2012 - 540, $303,036, 78

2011 - 477, $307,682, 82

2010 - 455, $296,060, 68

2009 - 467, $291,391, 75

2008 - 346, $434,059, 70

2007 - 288, $599,480, 74

2006 - 582, $588,025, 53

2005 - 527, $536,763, 36

MidCity: Single Fam + Income
(Year - # Sold, # Avg. Selling Price, Avg. Days on Market)

2014 - 46, $520,901, 59

2013 - 639, $482,752, 57

2012 - 608, $378,163, 75

2011 - 688, $321,433, 79

2010 - 671, $323,346, 79

2009 - 563, $357,775, 76

2008 - 274, $592,111, 93

2007 - 270, $671,629, 79

2006 - 363, $682,646, 61

2005 - 530, $623,695, 44

Silver Lake / Echo Park: Single Fam + Income
(Year - # Sold, # Avg. Selling Price, Avg. Days on Market)

2014 - 37, $887,516, 49

2013 - 529, $739,377, 55

2012 - 474, $614,226, 76

2011 - 405, $564,821, 76

2010 - 350, $574,622, 73

2009 - 335, $585,189, 86

2008 - 276, $693,910, 86

2007 - 365, $779,561, 70

2006 - 522, $760,779, 66

2005 - 640, $724,455, 54

Beverly Center / Miracle Mile / West Hollywood: Single Fam + Income
(Year - # Sold, # Avg. Selling Price, Avg. Days on Market)

2014 - 23, $1,386,091, 37

2013 - 349, $1,227,638, 55

2012 - 292, $1,026,394, 67

2011 - 243, $955,123, 86

2010 - 304, $889,220 97

2009 - 253, $802,652, 85

2008 - 215, $985,319, 71

2007 - 298, $2,207,047, 71

2006 - 362, $1,141,213, 63

2005 - 449, $1,032,051, 48

Culver City: Single Fam + Income
(Year - # Sold, # Avg. Selling Price, Avg. Days on Market)

2014 - 16, $827,062, 46

2013 - 272, $820,601, 50

2012 - 262, $674,117, 64

2011 - 191, $644,994, 75

2010 - 163, $682,056, 75

2009 - 182, $667,944, 62

2008 - 153, $738,660, 57

2007 - 180, $826,487, 52

2006 - 249, $822,197, 55

2005 - 257, $774,108, 39

Beverly Hills: Single Fam + Income
(Year - # Sold, # Avg. Selling Price, Avg. Days on Market)

2014 - 27, $5,005,814, 106

2013 - 350, $4,080,498, 86

2012 - 370, $3,732,406, 106

2011 - 318, $3,393,320, 112

2010 - 305, $3,497,906, 100

2009 - 228, $3,077,749, 113

2008 - 209, $3,639,570, 88

2007 - 324, $3,927,118, 87

2006 - 346, $3,161,007, 93

2005 - 404, $2,173,353, 85

I wasn't sure where to place this post as it isn't quite a success story, but I did want to share a thanks to @Joshua Dorkin , Brandon, and all of the BiggerPockets community.

In the short time I've been here and with less than 50 posts, I've already personally met and connected with four wonderful individuals in my area. The little bit of time I've spent here to make these connections will in all likelihood have a real impact on all of our businesses this year.

So THANK YOU. And if you're new and stumble upon this, be sure you spend the time to connect, converse, and provide value to those whom you interact with. It works.

@Mike S.

Yea, the "Just Sold" was from another agent. We had to get permission to advertise it first.

I hear what you're saying, but I just don't buy that people did that much research into the property sold and decided "Hey - I won't use this agent because this was on the market for 2 months." Not saying it couldn't happen, I just don't see that as being the overall reason we got no responses in general. I could be wrong...

I'm with you though. I think that in general, these homeowners are inundated and have seen it all. In L.A., t's all about who you know. That's why we've pivoted and are now spending more time and energy on building out long-lasting relationships.

I bet you mailers work better in an area like Jefferson Park, West Adams, or other working-class neighborhoods.

Thanks for the feedback.

Hey @Mike S.

Yup.

One of the challenges a realtor faces as opposed to an investor when it comes to prospecting, is that we're subject to a load of rules/regs. The rules make creative marketing difficult to do while staying within the boundaries of what is allowed.

For instance, we can't proclaim "we have a buyer who wants to buy your home" unless we really actually do have a buyer (though, I know many a realtor bending this rule). We also can't advertise other agents' listings without their permissions. So if you're new and don't have a big portfolio of listings, it can be challenging.

This all something to consider to any investors reading thinking about getting your license.

I debated whether I should show the cards we used, but what the hey. If you have feedback on how we could improve, I'm all ears. Personally, I think we chose too competitive a farm for starting from scratch which is why they didn't work. Even still, I expected at least one call or email - it just didn't happen.

*edit*: seems I cannot link an image for some reason.

Here's the full album to see all postcards in full size: http://imgur.com/a/21IRB#0

Market Update Report

Just Sold

Seasonal Card (Door-knocker version)

@Ben Johnstone I probably shouldn't say this since my wife and I are both agents, but, there is some incentive to not use an agent. People don't want to pay commissions and sometimes, it's much faster/easier to just make an off market deal for an agreed upon sum of money than it is to list it, deal with marketing, open houses, etc. Given the demand in an area like West Hollywood, the chances that someone will take pennies on the dollar is slim. Not impossible, just very slim.

The situation you see where an entire block is owned by an LLC is very common. In fact, I'm leasing a home in Beverly Hills that is in the same situation. Every home on a few blocks of my street is owned by the same LLC.

When I went to the owners' office to sign the lease, I inquired about the history of the company as I was curious to know how the LLC had come to be and how were they so successful. As it turns out, someone very smart purchased these homes some 40 to 50 years ago and hung on to them. In some cases, entire blocks were razed to build a bigger, new developments. They now retain properties for both cash flow and for the future prospect of once again combining lots for a new development.

Hi @Ben Johnstone

I lived in West Hollywood most of last year, near the corner of 3rd and Robertson.

When I first read your post, I was going to recommend that you go door knock the homes and try and talk to the owners directly. However, I believe West Hollywood, along with Beverly Hills, have a city ordinance prohibiting door knocking (or more specifically, soliciting in general). And in West Hollywood, you can't even put out open house signs on street corners. That's why you often see agents, like my wife, put signs on the top of their cars to advertise the open house.

As someone who sent over 4000 mailers to the West Hollywood and Beverly Hills areas last year, I can tell you that it is going to be tough.

I got zero responses from any of my mailers. And when my wife and I door knock, I often see stacks of other mailers/letters from other agents and investors still hanging from their door or stuffed in their mailbox.

That said, it is a tough market. I'd focus on the property that is delinquent on their taxes. Tell them you'll pay their entire tax bill and make them an offer for their property. Chances are, they know what they can sell their home for, but you never know - you might be able to pull off a deal. You won't know unless you try.

As an aside, Keller Williams training states that it typically takes between 6 and 8 contacts before a seller will decide to sell. In other words, don't give up if the first few things you try don't work.

Welcome to BiggerPockets!

@Matt Devincenzo @Jerry K. Whoops, you are correct. I meant tax deed sales.

Access to title services and getting full title reports or abstracts isn't an issue as I have two title reps who I work with.

Should I and at which point should I get title insurance?

I have a few questions about investing in tax lien auctions in California. If someone has Los Angeles county specific info, even better.

1. Assuming you have the list of properties going up for auction, what prep work do you do prior to auction to help you decide if and how much you should bid?
2. Do you run a title search on properties for which you plan on bidding to ensure clean title? If there are other encumbrances, which should I be concerned with and how do you deal with them?
3. After you win the auction, what happens next? I know you have to wait a year to make sure the lien is not disputed, but how about after that?

Any and all info would be greatly appreciated.