Let’s do some real estate investing in Los Angeles and Orange County, CA and create a strategy that suits you and your needs. Sound like a plan? Our Los Angeles and Orange County Real Estate Investors wanted to quickly give you a short list of things to think about as you develop your real estate investing system and team to make your real journey a bit smoother.
Focus On What You Love and What You Know
There are an endless array of marketing strategies and types of real estate to get into. If you watch any of the real estate flipping shows on TV, then you know that Real Estate Flipping can be extremely lucrative but also a bit risky if you don’t happen to know your numbers.
Buy, hold and rent works well for many Los Angeles Real Estate Investors, as long as you have a solid plan, and a great team, to help you deal with tenants. This is actually a very incredible strategy in our current Los Angeles and Orange County,CA Real Estate Market, as many cities are experiencing a shortage of rental home inventory.
Our Real Estate Investing Training Los Angeles experts suggest that you always focus on your long term goals.
Develop A Team Of Reliable People Who Help You Become Successful
The most successful Los Angeles Real Estate Investors that we know all have a reliable team to cover the basic aspects of what they do. If you are Real Estate Flipping, then you would want:
- A reliable and honest contractor, unless you are doing the repairs yourself
- A good private money lender so you can close fast and even help with funds for repairs
- A good real estate agent or one of those DIY brokers who will post your home to the MLS and let you take care of the paperwork and showings
In addition, it also might make sense for you to go out and get your real estate license and sign up at an association and for the MLS. This will give you the power to list your homes and be your own real estate agent, plus you can scour the MLS for good deals.
Furthermore, you can also get “contractor accounts” with some utility companies that saves you money on the turn on and offs. Ask your utility companies if they have these types of accounts.
Cash Flow Rules the Day
If you are doing a buy and hold strategy cash flow must be calculated properly.
The rents must cover all of your costs, mortgage, insurance, taxes, etc., plus provide some sort of income and a little extra to save for emergency repairs.
Finding Really Great Deals
This is the magic skill set you must learn to carefully master. While on occasion you might run into a really good deal on the MLS or in the newspapers, most of the really outstanding deals will be found when people desperately need to sell and before they hit the general real estate market.
This is why bandit signs and billboards work well. When people need a little cash and need to sell fast, they will usually take much less for their home then the market would bring especially if it needs a good amount of repairs.
Never Let Greed Control the Deal and If It Looks Too Good To Be True
This is the “gotcha” part of real estate investing. And also where having direct access to the MLS can be a blessing in disguise.
If you discover a deal being advertised as a to good to be true property and as a steal, our Real Estate Investing Training Los Angeles experts recommend that you be very weary of what’s involved. First off check the MLS and compare upgrades when it is in an older area. Many towns where home prices are higher due to the area will see people listing their homes higher than what the market will bear. A home might have sold for $450,000 for example, but our Los Angeles Real Estate Investors suggest that you check out if the home you are looking at is comparing apples to apples.
A handful of time, if you don’t have MLS access you might not know that the higher priced home had a pool, or all brand new cabinets and flooring put in. If the home is for sale at $380,000 but needs $120,000 in upgrades to be comparable, it is not that good of a deal after all.
Do your math and then do it again! This is where many new Los Angeles Real Estate Investors fail. They overpay for a property and then lose money trying to get it rentable or ready for resale.
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