All Forum Posts by: Brant Richardson

@Kim Halverson , @Kim Handelman 

I am an out of state investor from California working in the Kansas City area.  Johnson County is expensive (like Orange County as mentioned above).  You will find much better rent to purchase ratios in Jackson county on the MO side of KC.  You need to be more careful to get into the good areas and schools but its worth it. 

  I have a awesome contact over there who helps me buy distressed properties and runs a property management company.  Shoot me a message and I will tell you about how he has it set up, it gives the out of state investor a lot of security.

Welcome to BP! You're right, you are in a great market.  The entry price for your first property is pretty low you shouldn't need to wholesale to start.  Look up William Robison here on BP he is a great investment realtor and he can inform you about the local real estate investment meetings.

Go to some REIA meetings and ask the investors who they use. Many of the podcasts guests have recommended going to Home Depot and see what contractors are at the Pro Desk at 6:30-7AM.

It sounds like you are really looking for appreciation, not long term buy and hold cash flow properties.  Don't forget about the expense of financing when you buy and paying the realtors when you sell, the first 10k of profit is gone immediately.  So buying a under 100k property and selling after 10% appreciation is pretty worthless.  If you want appreciation, stay in California.

I believe in looong term buy and hold.  Buy right and keep it, refinance out the equity if you want it to use it to acquire more properties.  Santa Barbara is probably even worse than San Jose as a rental market which is why I went out of state.  I have been investing in the B neighborhoods of Kansas City suburbs and am very happy with my properties there.  I am working with a local guy who helps me buy distressed properties, rehab them and manage them.  He has a great business model that gives out of state investors some security that they are buying right.  Send me a PM and I can introduce you to him and give you the details of his operation.

Californian who invests in KC here.  I look for a good price to purchase ratio - 1.5%, in a good neighborhood (Independence/Raytown or farther East), with good schools, in homes families want to live in long term (3 bed, preferably 2 bath).  My numbers don't look that good in a flow chart next to the expected numbers of guys buying in lesser neighborhoods but long term I expect my investments to be more profitable.  Out of state investors need to feel safe, they need to know they are in decent neighborhoods.

Opportunity with a private fund... what do Californians want?... targeting rent ready properties with tenants in place.  My guess is that you are building a turnkey company.

My advice is to invest your time in educating yourself.  Somebody who just finished college probably wants to puke when you hear that for the millionth time but I'm talking about learning useable information, not general ed.  Listen to the Podcasts available on BP, they are awesome.  The podcast guests recommend books too, if you do a quick search you can find the most often recommended books in the podcasts, all worth reading.  Get active in the forums, don't feel bad about asking newbie questions or even giving advice, sometimes being corrected on something you thought you knew is the biggest learning experience.

Nuhan Demirkan just completely nailed it. Very sound thinking, not crazy at all. If you have equity to access through a loan on your property in SD then you could access it by selling instead. Why turn it into negative cash flow and hold on to it? Most likely the debt to income ratio you incur will put your ability to invest in better properties to a halt if you hold on to it.

I live up the way from Oxnard and I'm an Aggie as well.

BP is an awesome resource. Start listening to the Podcasts, they are an excellent way to learn about the huge number of ways to invest in real estate. At the end of each show the investors name off their favorite investing book, some of the books come up repeatedly, check them out.

An owner occupied 4 bedroom that you could rent rooms out to other students in would be pretty ideal. I wish I had done that.

Check out podcast #75 if you have not already, there's a lot of good mobile home info.

As previously stated, you should not consider only being able to get 4 loans as part of your strategy. You can get 10, after that you can move on to a portfolio lender and get more.

Reminds me of my college days.  I moved in to a place because I was desperate to get away from living with my girlfriend, plus the house was right by the beach.  The guy running the show had converted a 3 bedroom hose into a money maker.  He had taken the living room as his bedroom.  The dining room became the living room.  The 3 car garage was turned into 2 more bedrooms.  There was also a camper in the driveway pulling in rent.  Besides making money on rent he sold weed.  The place was so trashed that the owners didn't want to evict him, the rehab to rent to legitimate tenants would have been massive.

Legally your roommate can't run a tattoo business out of the house.

If your other room mates want him out too then you should be able to make something happen.  If he is not on the lease you should be able to get him out.