OfflineHi everybody. I'm a newbie in the Southeren California area, more specifically in Hollywood and I would really appreciate some help developing a plan of attack from anyone who knows the ins and outs of the so cal market.
Here's my situation: I am a single actor with some background in real estate. In fact at one point back in New York I had a real estate license but only worked as an apartment rental agent.
Also, I have a ton of expierence as a handyman / carpenter so if I can't fix it then.....you'll probably have to pay a real professional... but I'm still pretty good. (So much for my sales pitch.)
My credit is fair to good but I've only recently started working a consistant job since relocating to LA and the move alone just about leveled my bank accout so I don't expect to qualify for much if any financing. More than likely I'll be looking at Hard Money, Flash Funding, and Lease Options.
Which leads me to my real question, if you were in my shoes, what would you do?
I've always thought I would be the right kind of guy to do buy fix and sells however, I could also see myself taking on a 4 unit apartment building and leveraging the equity. Then there are sandwich lease options, bird dog deals and assignments (double close here in california). So I'm really at a loss as to where to begin and which strategies work best here in LA as my first move.
Naturally I would love to do it all and will likely try each strategy as time goes on but again, I'm looking for my first move....starting tomorrow!
I'm alredy working on my buyers list (got 3 people so far) and I've got flyers out to attract sellers. In addition, I've got an eager real estate agent and I've attended two REI clubs (definitely open to more!)
So, I would love to hear your advice and even more so, your experience with the So Cal market. Thanks in advance for taking the time to read this and help me consider my first purchase. I look forward reading your responses.
- David
Hi:
The first thing I would do is figure out the area you want to buy in. I have spent some time in SoCal, just as a visitor and because I thought I might one day want to live in California.
I found some really good deals in the Paramount Studios area, mainly Sunset and Gower, Melrose. I also found some good deals around Labrea where Pinks Hotdogs is.
I would deal inland as opposed to ocean front, because price points are cheaper inland. The demand for homes is going to be far better than ocean front because more people can afford inland.
I would then focus on building a team of people to help you reach your goals. You need a general contractor, attorney, cpa, realtor, funding consultant, appraiser and inspector.
As far as funding, you have all kinds of sources of money available to you in SoCal. I would use transactional funding in the beginning.
Thats what I would do.
Paul-
thanks a bunch for the response. you mentioned some great areas. it's funny, I've just assumed they were out of my price range so I've been looking more east like atwater village, echo park, silver lake, and eagle rock. also great point about the beaches, I've been tempted but you make a solid arguement against it. And thanks for the team list. I've got an inspector, a funding consultant, and possibly a realtor but if anyone has any recommendations on the rest I would love to hear them.
-dl