All Forum Posts by: David Friedman

@Matt R. Do you invest in San Bernardino? I am always looking to network with like-minded individuals.

I never buy high. Whether the market is the strongest it’s ever been or the weakest, I am always trying to buy 20-30% below current market.

They considered the City of San Bernardino for HQ2. Sadly, I do not think the city council members and mayor at the time put on a good enough presentation for them to consider it.

San Bernardino has some of the world's best warehouse and logistics infrastructure including it's own airport. Cheap land and central location to the rest of the U.S. led to huge growth in new warehouse development. Amazon has 3 huge warehouses already in San Bernardino.

Hopefully we will be considered again for HQ3.

Hi @Chauncey Perkins!

Investing in real estate will help to build long-term wealth. It's an asset that works for you day and night, even if you aren't necessarily doing anything.

Being an agent in the service industry is a great job if you know what you are doing. You can make a lot of money from commissions. Unfortunately, there are a lot of tech companies trying to do your job over the internet. They are slowly succeeding. Zillow, CloudCMA now offer sellers the opportunity to sell their own house directly to a company or list it online themselves. I believe this trend will continue as the age of homeowners that are familiar with technology increases.

I highly suggest you hedge your bets against agents becoming unpopular and figure out a way to invest intelligently. The face that you are already on BP is a great start. Research your market and jump in. Too many people get analysis paralysis.

In 2016, the Hispanic Wealth Project released a report stating that Hispanic households make up 7.3 million units in the nation.

http://hispanicwealthproject.org/shhr/2016-state-o...

Los Angeles alone has approximately 4.9 million Hispanic people.

We've started to do our marketing in Spanish and English because of these trends. The Hispanic population is booming especially in Arizona, Texas and California. Frankly, Spanish speakers just trust someone more if they can speak Spanish as well. Removing language barriers with our marketing has helped improve trust immensely. Hispanic people are some of the most resilient and hard working people that I know. Regardless of Trump's immigration policies, I continue to see Hispanic wealth growing in this country.

Is there anybody out there that has been doing this for a while and has seen results? Do you only advertise in Spanish? What are your thoughts?

I know some wholesalers that join local buy/sell groups on Facebook (Usually for junk and cars) and will regularly post a picture that says, "I BUY HOMES FOR CASH" or something along those lines. They do get a lot of deals that way. Also, in California, if you don't have your marketing in Spanish, you're losing out on a huge niche market. HUGE.

@Jonathan Li

I think portfolio loans will be in the 5-6% range. You could possibly get them lower with an ARM, but it depends on how long you plan to own these properties.

@Rob Moran That makes sense. Do you know any accountants or attorneys versed in the recently released regulations?

The cash for keys idea is a good one. If that’s what it takes, it’s probably less of a headache than doing an eviction and possibly less costly.

Definitely do NOT offer to help them find an apt. That makes it easy for the tenant to put responsibility on you and when they don’t move out on the agreed upon date, they could blame it on you.

I think a lot of people tend to choose turn-key rentals in other states than California because they take less cash to play the game. In your case, it sounds like you want a more passive investment, which turn-key companies can provide. That being said, I have heard some horror stories from people who had horrible experiences with turn-key companies. 

If I were you and I was looking into turn-key units I would do a couple of things:

- Pick a state/city that you are willing to travel to or maybe already travel to for vacation.

- Research the turn-key company's property management methods. I see most horror stories happen after escrow closes and the turn-key company has made their big money off of you.

- Choose areas with somewhat predictable climates. If your unit floods or catches fire, you better believe that the turn-key company is not going to be of much help.

That being said, you may also want to look into investing in real estate funds, syndication or investing into Opportunity Zones if you are looking for even more passive returns.