All Forum Posts by: Patrick Fraire

I hear you regarding being young and willing to own C class. IMO I see San Bernadino as D class but I am looking at it as a whole and making assumption. I don’t know the neighborhoods or even the area around the university. You might be onto something because a lot of investors might be closed minded to it like I am and missing out on opportunities. Can you elaborate on what you mean by pumping money into a neighborhood? Are you buying multiple properties near each other and rehabbing?

David I’m in Panera drive through right now so I apologize for brevity. I’m enjoying this convo. I think your numbers are way off in Redlands. Check out this 4 unit for less than 500k. https://www.redfin.com/CA/Redlands/521-E-Brockton-Ave-92374/home/3201538?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link This is the best deal I’ve seen on the market in the last 6 months however most senior owner operators value their four unit properties at about 500k in Redlands. This is just an example. Go Yotes!

@davidfreidman I’m on mobile so it doesn’t actually tag you but hope you see this. Thanks for your reply. Here are my thoughts I went to school at Cal Poly Pomona. I love Pomona and have been analyzing deals there for about a year. Other investors I talk to don’t love Pomona. I think going to a university makes you biased to the city it is in. With this said, I think San Bernardino is having the same effect on you. I’d emplore you to look at statistics on San Bernardino county vs Riverside and LA county. The numbers are significantly worse for employment and crime. Arguably the two most important factors for long term investments you mentioned. Now you said my returns are worse than someone investing in “up and coming areas” . In my post I mentioned I am a proponent for Redlands and downtown riverside. To me these are two up and coming areas. Now the term up and coming is subjective. For me the “up” means established. I look for the one of the best neighborhoods in a city. The “coming” is directly correlated with job growth and population growth and potential for rent increase. This is why I believe in downtown riverside. Rents are going up and the neighborhood is established. Upland and Ontario are not established to be. There are rural areas where developers can increase inventory significantly if demand warrants it. Downtown riverside will not allow large multi family apartments to develop. The city plan is strict on preserving the existing historic feel to the city. I will give you Rancho it is a lot better than other cities in San Bernadino County. But Rancho is mostly suburbs where a lot of upper middle class families live. Not really up and coming. Just up.

San Bernardino county you can cash flow but you have some of the worst tenants in Southern California. The gem of San Bernardino county is Redlands. If you haven’t heard of Redlands it’s because it’s sort of the best kept secret of the IE. The city is separated by a freeway. Above the freeway is bad part of town below is good. Also east of the college campus within a mile is good. I have a marketing campaign going for multi family in this area. Most landlords own multiply of these tri’s and quads throughout Redlands. Every landlord I’ve talked to so far has a portfolio of at least three properties all in Redlands. People who live there love the city. Everyone else just hasn’t heard of it lol For me personally I believe in Downtown Riverside. Rent growth is pretty amazing over the last year and there are several landlords that just haven’t keep up. I am in escrow on a triplex now. The current landlord has each unit under market rent by at least 25%, it’s insane. I will be cash flow negative with my fha loan but I am highly leveraged on this bad boy. My cash is less then 25k so it’s sort of low risk high reward. This is also a house hack deal for me so I preferred a premier location over a $50 of cash flow.

I’m currently in escrow on a triplex I’m downtown riverside. Would love to get this thread going again. I will keep y’all posted with updates and would love to hear others experience house hacking DTR!

Chris Mason 👌👌👌👌

John Stephenson I don’t have any advice on how to be an intern but just my 2 cents on what you said about not pursuing your health care career. You should leverage your degree in health sciences to give you a competitive edge in your REI. There are very lucrative investment opportunities in assisted living (which is somewhat health care related). Check out any podcast with Gene Guarino. This guy pretty much is dominating the assisted living industry. Super interesting stuff and it might be up your alley.

You could buy a Mac for $1700 like I did. Or you could spend that money on mail marketing campaign. If I was an agent I’d buy an hp or something under $1000 and use the extra $500 or so for mailers. One commission check will pay for the laptop and the marketing budget.

Purchase Price: 925k (includes wholesale fee)

Estimated Rehab: $65,000 Allowance

- Property is tenant occupied so buyer assumes property as is. 

- Renovated in 2000's 

- I have photos from a few years ago but no current condition photos. 

ARV: 1,180,000 (conservative) 

Please contact via phone or email for more info. I won this property on Hubzu auction site and need to find a partner/investor in next 24 hours. This is a very highend neighborhood (Virgina Country Club). Rehab may be very minimal as the property is occupied and livable. 

Phone: (805) 598-4953

Email: [email protected]

I have title reports, mls info extra upon request. 

Good stuff @Guillaume D. Im most impressed by your ability to get good partnerships in your beginning stages of investing. How did they trust you if you hadn't invested much? No falling outs or issues? Ive struggled to find partners thus far. Being in California I need partners with cash to fund the deals or atleast bring 70% to the table. I've been able to find two serious partners but it seems been a struggle. A lot of people have heard horror stories of partnerships gone wrong with real estate and that makes them stay away. Even when the numbers work.

Does anyone here know of a success story like this but in Southern California?? Only one I've ever heard of is @grahamstephen in recent years. I'm looking for someone that has become a millionaire in a tough market like LA or Orange County that did not build networth due to buying right after the crash. That would be truly inspiring for me.