All Forum Posts by: Wiley Strahan

@Dan H. thank you for the amazing response! That was super insightful. I am looking at a 75% LTV scenario which you would think would make the cash flow equation better. Pretty much all of the properties are coming from the MLS where most of the properties are either overpriced or get that way once the bidding war starts. Do you have any suggestions for finding off the MLS properties besides your typical meetups and networking?

@Tyler Hungerford thanks for the insights! I would love to get your perspective on where there is still opportunity to be found. I will send you over a PM. Thanks!

@Nabil Suleiman In most cases, the owners have not been raising rents with the market and so there is opportunity for upside in the rent. Thanks for the suggestions. Have been to a few meetups but will continue to hit the pavement.

@Andy Cross @Shannon Wright Thank you for the insights. Definitely seeing prices that are insane for most of the CA properties and can understand the upside is mostly found in the more difficult properties. I will do my best to keep this thread updated as I learn more.

Hi All,

I have been looking at properties across LA (Long Beach, Hawthorne, Inglewood, etc.) and I have found that the vast majority, if not all of the properties do not cash flow. I talked with my agent about this and she said it was normal in California to not have a property cash flow especially in the first few years. She mentioned that her other investors buy solely for the tax benefits and appreciation.

 Conversely, I talked with a few others in the real estate community (investor & agent) and they definitely disagree and provided examples of properties cash flowing in those same areas. Those other properties also had rents that were below market which could be a contributing factor. Is this just a matter of the properties I am being sent aren't good deals or should I adjust my expectations for cash flow? I get this isn't the midwest or south, but I was at least expecting some cash flow especially for properties where the rents are below market. Any wisdom is appreciated.

Thanks!

Hi All, I have been looking at some properties in Los Angeles (Long Beach) and I keep coming up with calculations that yield me barely any cash flow. [they are 3-4 units] My question is, is this to be expected in LA? My realtor seems to think that most investors don’t cash flow until a few years in , but I have also talked with others and they are definitely finding properties that cash flow especially when the markets below rent. Am I on a wild goose chase for cash flow or is my agent right about having to take loses or break even for a few years? I am guessing many of you will say it depends, but I am just trying to level set. Thanks!

I like 1 because it is clear that you are focusing on real estate.

The first thing I also check for is whether the domain is available and whether or not the name is taken when creating the company. It looks like both are taken. That doesn't mean you couldn't find another version of the website like frontierrealestate.services or something along those lines. I usually use register.com to do this. Can also buy the domain directly from there and plug it into your favorite website building website.

@Dellener Crayton you got a great response from @Aaron Poling.

I suggest interviewing a few different agents and not just settling for the first one you come across. You may burn some bridges by shopping around, but I like to be very clear with agents that I am talking to others so that they aren't surprised. As Aaron mentioned, each agent is going to bring something different to the table and I would suggest being very honest with yourself when it comes to what you are good and bad at. For example, if you aren't great at running the numbers, you might want to find an agent that is also an investor and can run the numbers for you. Additionally, if you are looking at multiple areas, you can definitely work with different agents as they may not be well versed in every area (even within the same city). I have found this is the case out in LA where I am based. Let me know if you have any questions I can help to answer.

Wiley

@Mike Krieg sent you a PM.

@Jason Dillard thanks for the advice. I actually just signed up for real estate classes yesterday to get the ball rolling.

@Jason Dillard@Chris Tracy thank you for the advice. I will take a look at these groups and see what they have to offer. 

@Sean Morrisey @Michael Badin thank you for the recommendations. I will take a look!

@Sean Morrisey sent you a PM