All Forum Posts by: Rick Albert

Hello Everyone!

As I am in the beginning stages of my investing journey, I am interested in investing in warehouses.  However, most of my investing circle isn't in that world, so I wanted to reach out to see if anyone has good resources, books, etc. that could be of help.

Thanks!

Rick

@Charlie Moore I would group them together. Her in Los Angeles, we have a high no show rate. By way of example, I had scheduled 16 showings within a window of time and only two showed up. Your time is valuable.

Plus, if there are a lot of people there at once, it provides a sense of urgency on the tenants part.

Good luck!

@Ben Feder I mean buy a condo, live in one room and rent out the other(s).  If you are renting an apartment now with roommates, your lifestyle wouldn't change much, but you are building equity.

You can buy multiple condos within a building, but you have to be careful.  A lender would be able to confirm this, but I believe if one investor owns more than 10% of the condos in a complex, then traditional financing may not work for everyone else, thus dropping values.

@Taylor L. Amen! I know investors who are making a killing on condos.

Although some people on this forum may disagree, I like the idea of house hacking into a condo first.  By living there, you can put less money down with a better interest rate.  Plus, condos are generally easier to manage, giving you a nice transition from renting into home ownership.  This is because you don't have to do things such as worry about the roof, sewer line, etc.  You can generally focus on walls in (every complex is different).  Especially if you are living in an apartment anyways, your lifestyle won't change much, other than building equity.

So excited!!!

I would like to have some presentations printed out, so if we can get a rough headcount that would be appreciated!

I think a big question is what are your goals?  Do  you want to start a portfolio of properties?  Even with property managers, there are still tasks you might have to deal with.  If this isn't something you are interested in, then move on.

Another thought to consider is renting it out for two years, then sell.  Hopefully (no guarantees) your tenants just paid for two years worth of appreciation, and you still fall within the 2/5 years of primary residence and avoid capital gains tax (talk to your CPA).

Being in Los Angeles, I started with buying a condo and renting out the second bedroom.

I agree with CJ that you need to have a plan. 

The other thing I would consider is your current living situation.  If you are renting now, then you may want to buy a personal residence and then start investing.  If you are renting, no matter what returns you are getting on other properties, the money you make now goes towards your rent.  Conversely, at least if you are paying a mortgage you are paying down a balance.  Especially as rents continue to climb.

You learn more from failing than you do from successes. I started small and got burned on the second deal.  However, I was able to turn it around and make it a positive.  Not starting is a failure to begin with, so you might as well jump in.  Just be conservative in the beginning.

Happy to chat if you need someone to talk to.

I actually got a lot of leads from Facebook Marketplace.  I posted one of my rentals and got 46 inquiries in 24 hours!  For me in Los Angeles, Craigslist hasn't been as great as it once was, especially when it came to scams.

Hope this helps!