All Forum Posts by: Tim Ryan

Luna,

This sounds like you are buying a home as your primary residence. Or is this your first investment rental property?  It's hard to answer without knowing this.

Do you ever come up to the Pasadena area?  I have a Meetup Group that goes over all of what you are asking.

To get to the point for you, you need to buy out of state if you want to grow wealth with rentals.  For flipping homes, you can do that in SoCal - IF you can find a deal which is very hard these days. Next is development but that is for the highly experienced.

First thing I'd like to share is that getting your RE license and becoming a RE investor are two completely different things. You probably know that. You'll still need investor training as the license won't teach you investing.

Now I will give you the best advice for your test taking: 

You will have the sample questions at the end of chapters and end of book. Or buy some tests. What you need to do is read the question - then flip back immediately to the right answer page - see the answer (say it's B) - go back to the question and ONLY read B. Then go to the next question.

If you do this over and over and ONLY read the correct answer then ONLY the correct answer will be in your head the day of the test. Think about when you have taken tests and you are just not sure as several answers seem correct... that's because you read all the answers, wrong ones too.

I've done this on three Big test (one being RE Licence) I finish the fastest, the scorer tells me to make sure and take more time, I say I don't need to, then this person tells me I aced the test.

You'll thank me. Oh, and just skim read all the chapters, you'll literally learn more just by knowing all the answers...

Good luck building your new rental.  Every time I've looked into building to rent the numbers did not make sense. I would sell the new build, but to hold as a rental, just didn't make sense. Buying existing rentals and improving it is another story.

Quote from @Nathan Gesner:

Quote from @Tim Ryan:

You are an experienced investor that found a few off-market home runs, probably back when the market wasn't as hot and there weren't as many new investors cashing out equity to invest in mid-west states. Even if you found a deal for $200,000 that produces $9,000 a month income, that's a complete unicorn that you probably found off-market. It's not repeatable for a new investor with zero knowledge or experience and I think it's irresponsible to encourage him to cash out equity and chase rainbows.

I'll agree with you that not everyone can do this as newbies. But I was a newbie once and I am doing these deals now. You are not correct about me just finding one unicorn.  It's all about finding the right market at the right time and I've done this several times now. I actually have several deals like that one. The reason I mentioned it in this post is because it is actually something a newbie could be doing with the right training/mentoring. I turn down good deals all the time as I don't wholesale. I either buy myself, or help another investor buy.

My criteria is:  are you looking in a "growth market".  What will be the future appreciation and rent increases of these properties? Once you know you have selected the best market, then analyzing the deals comes next. First step is the 1% rule minimum.

Hi Jada and Welcome,

I believe in coaching for some people and not for others. It just so happens I am speaking on this at a Real Estate Meetup in Eagle Rock (LA) this Tuesday. Look for my Inbox message to you. Would be great to see you there.

@Nathan Gesner you are right to question my assumption. I meant for Navid to obtain a HELOC type loan without the need to refinance the current debt (I suppose if available but there is always a way). The problem I have with your assumptions is you are suggesting he buys a $400,000 property and gets $3,000 per month rents. That's not at all what I am currently buying. In his place I will buy a $400,000 property with $5k-$6k rents. This makes all the difference. For instance, not long ago I bought a 9 unit apt with two retail on first floor for $200k and at purchase the rents were $6400/mo. I now have it at $9k/mo (the rents were low), and I've done several like this.

All these responses are right on.  What area are you in? I mentor investors who are close in proximity to me.

Navid, for sure you should be looking into multifamily and buying out of state. This is a no-brainer. While reading your post I was thinking "sell the Cali properties", but with 3-4% interest rates (and I'm assuming those are long term fixed rates) you will be best off to cash out refi (non-tax event) and use those funds to buy multifamily. So much more to say so DM for more.