All Forum Posts by: David Friedman

I thought I replied to you @Davon Lowery. I must not have sent the message. I apologize.

I will contact you through private message

@Gary Erdoglyan Auction.com in Ontario and Chino. We do not do online auctions.

I buy properties at auction in the Inland Empire. We average 15% return on each house. Different than buying at a tax lien auction, but similar. I can usually flip 4 homes per year. I don't spend any money on marketing, and I own the house the second the auctioneer says I am the highest bidder. I do have to deal with evictions from time to time, but I've always been able to work something out with the tenant. 

The problem with tax sales is that they are inconsistent. I can go to an auction Monday through Friday.

Hello @Elaine Lau!

Welcome to the world of real estate investing. Taking the first step is always the hardest, but once you do, you should be able to find a niche that is profitable/enjoyable for you and your husband. 

Whether you are getting your real estate license or wholesaling, both ways are viable investing strategies. You first need to create a team of people that you can rely on. Find a good title rep. They can give you a list that shows which areas have the highest turnover. If you start a mailer it is best to mail to areas with higher turnover. If you get your license, this will help you save money when selling a property and give you access to the MLS, but deals on the MLS are very scarce (I'm a licensed agent. In two years I've only been able to get one deal off of the MLS).

If you still find it hard to make a decision then your best bet is to partner with someone who is experienced. At least for your first time.

Hello @Joshua Swanger

I'm an agent in the Inland Empire. The only fee I pay is for access to the MLS. $96 quarterly. If you want to be designated as a Realtor, then you are looking at spending approximately $1000 per year for all necessary costs. Being a Realtor gives you access to online real estate forms which is honestly a must. If you want to market on Zillow you are looking at spending $250-500 per month depending on the area. Mailings might cost you $300 per run and you'll need to do 6-8 runs to start seeing results. I hope that helped!

We invest primarily in San Bernardino. There are some good parts and there are definitely bad parts. Generally above the 215 freeway is pretty good. I would be careful anywhere else. There are a lot of pocket neighborhoods where it is safe, but a block or two down and it starts to get sketchy. 

Hello @Daniel Siapin My brokerage office is in downtown San Bernardino. If you are looking for properties online I doubt you will be able to find a 4plexes at 2%, even in San Bernardino. To find the 2% rule in the Inland Empire you'll have to do mailers and make the deal happen off-market. No agent is going to put a 2% deal on the MLS. Just a true fact. Even if they did you'll be bidding against 10+ other bidders. Right now 1% is common on the MLS. If you plan to invest in the I.E. let me know. If you have cash there are other ways to get to that 2% rule.

Thank you @Colin L. I will have to start compiling a list and just go for it!

@John Blackman Thank you for the response! How can I find a reputable builder and architect that won't overcharge me because I am new? It seems like such a large project with moving parts, like you said, that it would be easy for them to take advantage of me. I know when I see a deal, hence me buying the land, but I am not savvy when it comes to finding dependable companies in such a non-transparent business. Thank you! If it helps, the project is in SoCal.

Oh, one more question: I have the possibility between building a Starbucks and another successful coffeeshop. Is it better to go with the international tenant or the other coffeeshop? What would make someone choose one over the other?

Hello BP,

I am new to the game of developing. By new, I mean I have never developed a property in my life! I am wondering what the best way to get financing for my first project would be. 

I currently own the land that I would like to develop on. It is a hard corner in a densely populated city. The city will approve a mixed-use scenario with retail on the ground level and apartments above. I have the highest zoning in the city so my options are pretty endless except for industrial.

Options I have thought of:

1. Partnering with a local bank

2. Obtaining LOIs from National/International tenants

3. Bringing on partners

4. Any other ideas? If I wanted to go with choice #1 what would be the most effective way of convincing a bank that I have a solid project?

Thank you for any advice.