If you are patient, the areas that will give you a higher current income, & higher intrinsic value, will be the outer geographic areas 1-2 hour radius of Los Angeles, which have also been the hardest hit. (Inland Empire, Palmdale-Lancaster, Palm Springs, Bakersfield) you will have a greater chance of buying below market value but will probably not see any appreciation in such a short time frame. You may also consider the inner city areas but you must have the right temperament for those areas( older inventory, higher repairs & maintenance, very competitive, & can be hard to manage). By targeting lower median priced areas, you will also have the opportunity to stretch & diversify your capital over many properties & buy newer inventory in better neighborhoods that to purchase higher priced homes that won't cash flow very well even with financing.
If you are looking to flip ( which I discourage, unless you have a high level experienced team behind you & for tax reasons) Stay in the areas with high velocity of transactions (entry level market median price market, in Los Angeles County.
Step 1, Position yourself to lock in as many 30yr fixed low interest loans for your portfolio there are institutional limits regardless of income. Step 2 look at VA foreclosures where you can secure an unlimited number of low interest loans 5% down (as long as you qualify with income) 3. Supplement your acquisitions with Seller-Financed property ( harder to find but well worth it if negotiated properly).
Most of all, work with a professional team who understands investing & are investors themselves. This will cut your learning curve & minimize major mistakes.
Best of luck,
E. San Jose
I have been an investor for over 18 years and currently own a 9-unit building in Santa Monica, CA. I think there are deals to be found anywhere in Southern California...you just need to work with a professional that has a "hyperlocal knowledge" (read "Stand Out With the Right Pro" article in the May 2012 issue of 'Money Magazine'). My firm, Horizon Realty, has just that. We are based in West Hollywood, CA and have numerous remote offices and experts in many neighborhoods and areas from Downtown L.A. to the Pacific Ocean, up to the San Fernando Valley and down to the South Bay. We have been in business for 25 years and would be delighted to assist you.
I currently have 3 pocket listings: a 20-unit apartment bldg. in Hollywood and 2 bldgs. totaling 14 units in Studio City, as well as a the following active listing: a 4-unit bldg. in Toluca Lake. Check out my most recent listing at: http://youtu.be/_aZ7TFaC32M. It's a 3BD/2BA SFH (could rent for $4,500-$5,500/mo.) with a 1BD/1BA townhouse (currently renting for $1,700/mo.). I am also currently in escrow for a 7-unit apartment building in Hollywood for an international buyer and we are scheduled to close by the first week of next month. Please let me know how I can help you find a great investment(s).
By the way, where are you living? Are you originally form Southern California? On boards like this, we sometimes forget to actually find out more information about you, our client. I wish you the best of luck and hope to hear from you soon.
Austin Chen, REALTORÂ®
Real Estate Investment Specialist
DRE #: 01898306
If you serious i can show you a few very good & secure deals - great properties.
Please call me direct 424-777-9377
Help with Any Real Estate Transaction - Buy or Sell
Call me 424-777-9377 - FREE CONSULTATION!
Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855) ext. 777.
President - RealtorÂ®
- Trust Sale Realty -
Residential & Commercial Real Estate
Toll Free: 1-855-TRUST-55
Toll Free: 1-855-878-7855
- We Hire CA Licensed Real Estate Agents -
You've received some great responses already regarding your question. I would add that you should find a professional in LA that is experienced in helping you with your purchase. I would also echo what my colleagues have said about appreciation. Your return-on-investment has to make sense upfront. Don't speculate on your return and on potential appreciation.
Too add, I would go with the properties that will give you a good cash-on-cash return TODAY and to not bet on appreciation. I think the next 5-10 years there will be a lot of headwinds against appreciation and I would rather have the cash flow TODAY. So sharpen your pencil and run your numbers well.
Since you are living outside the US and you need housing for your family, why not buy a home in an area that has a history of good appreciation. I can think of several neighborhoods that would fit that bill. Remember the better areas with the best schools are in highest demand in any area.
In order to assist and advise you accordingly it would be best to have a no obligation
confidential conversation to see how we could best serve your needs. We are an
International Real Estate Company and have a network over 38 Countires including
a base here in California, therefore if I can be of any further assistance my e-mail
Wishing you every success with your property search.
THE BEST COUNTY IS RIVERSIDE CALIFORNIA, YOU CAN BUY A GOOD PIECE OF PROPERTY FOR 150,000 DOLLARS AND RENT THE SAME FOR 1,450.00 OR BUY THE SHORT SALE CASH AND SALE IT IN 90 DAYS AND HAVE A RETURN OF 30%
There are few strategies that you can consider depending on risk tolerance and liquidity needs.
For quick money, buying trustee sale/auction properties will give the highest return in a shortest time. However, the risk is very high.
To make a decent ROI, buy and hold in distressed areas that are adjacent to neighborhoods that have already experienced a signification run-up in prices will most likely give you appreciation potential.
You should also consider tax implications with your capital gains to obtain the true value of your real estate investment.
Look into REO properties that has been sitting in the market for more than 90 days. You might be able to structure a good deal. As an investor, you want to pay no more than 60 cents for a dollar on a property.
Please contact me for a list of pre-foreclosure/auction properties in the area of your interest.
Good luck and wish you prosperity.
When I invest and flip houses, either on my own, or with an investor partner, I. personally, like the Hollywood Hills, Beverly Hills PO, Encino, Tarzana, Sherman Oaks south of the Blvd. These are communities where a "problem" property that I am in a position to correct for far less than retail can bring huge profits. For example:â€¦one that is non-conforming to the neighborhood, or under utilizes the lotâ€¦a house in a very bad condition with a design problem. A really tacky house that has a floor plan that could go sleek and modernâ€¦A house that doesn't take proper advantage of an amazing view - or sometimes has a "perceived" problem such as minor slippage that turns out to be $5,000 worth of foundation work, straightening up piers, or correcting a washed out stem wall problem following a leakâ€¦.not $500,000 worth of geotechnical issues.
These are areas where deals can be had on the right property, and good, quality construction can be achieved (when you know a good crew), resulting in outstanding profits. The values for a very desirable houseâ€¦a "prestigious" houseâ€¦a well done, move in ready house, or sometimes, a house that accommodates a family trying to get into certain schools will always hold it's value and offer appreciation opportunities in these neighborhoods. Can you imagine a time when Beverly Hills will go out of fashion? There are greater risks in these neighborhoods, of course, as your initial investment is larger - you'll be picking up a "deal" for well over $500,000 - and it is absolutely necessary to keep your construction costs under control, but that same investment - in the right situation can gain ridiculous appreciation in a short period of time. Many amateur investors make mistakes here, thoughâ€¦ the "cache" of the location often will bring inflated bids for construction that are completely unnecessary - because contractors in LA know this: depending on the locale, more often than not, the sheer ego of the owner will allow you to overcharge, and they'll pay it, if only for bragging rights. You can't go "cheap" on construction here - it HAS to be quality, but it doesn't HAVE to be expensiveâ€¦it just has to feel expensive.
I regularly see kitchens that cost $200,000 that I could have duplicated almost identically for $35,000,,, bathrooms that cost $20,000 that could easily pull off the same design appeal, and offer similar product quality for $8000. The profit is in the construction know howâ€¦an eye for good designâ€¦and the ability to spot an opportunity. I love to do these projects, and am always open to investment partners who have some time to manage, while I direct, and we both share in the profits.
Are you willing to take a lot of risk little or no risk?
Do you have other objectives like living in the real estate you purchase or is this strictly an investment?
Call me for free consultation
Southern California Beach communities are a magnet for tenants from all over the world and they command a higher lease per square foot than many of the other communities.
Should you need help. Feel free to reach out to me for direct advice at email@example.com or call me cell 310.486.1002.
Beverly Hills-Coldwell Banker- S
Kinecta Federal Credit Union (a not-for-profit direct lender) is one of few HOMEPATH lenders in the country, with a presence in California.
Hope this helps!
Rene Joseph De Blanco
The best deals/returns for the next 5 years will be in an area that has held it's value in the recent housing crisis. Location, location, location stands true. Los Angeles' Westside markets including Santa Monica, Brentwood, Mar Vista, Venice, Culver City and Marina del Rey have held values very well. Due to proximity to the beach, schools, and walking areas your best investment would be an area that offers these to potential tenants, and maintain your property value.
Hope this is helpful for you. If you need our services in any of the areas I mentioned, we're here for you.
I work with investors out of the country and understand it very well.
Have a great day!
Neal Grusky, Agent, Santa Monica, CA HI,
I work with many investors. This is how i got my start. Unlike many other agents out there, I was an investor long before I was an agent, so I know this market well. I encourage my clients to look for investments opportunites in 2-4 multifamily, and entry levels home (200-500k ), this is where the best and quickest rate of return lies. I work with several lenders that have many of these foreclosure opportunites, as well as probate, and trust sales. Feel free to call me or email anytime.
Talk to you soon!
Real Estate and Financing
10940 Wilshire Blvd. Suite 1600,
LA, CA 90024 | Office:
| Fax: (800) 652-7604 http://www.hpremiereproperties.com
0 votes â€¢ Comment â€¢ Flag â€¢ Delete â€¢ A moment ago .
I work with many people that do this and have access to deals all over. Please feel free to contact me at your earliest convenience and I'd be happy to discuss with you this process and what I can do for you.
Keller Williams Realty
7920 W Sunset Blvd, #100
Los Angeles CA 90046
P: (818) 919-2018
F: (888) 214-7552
DRE License #01816257
If you are looking for a property that will make money for the long term you can't go wrong with 2-4 units in a good area. $750k will get you a long way into a positive cash flow situation for sure. If I had that kind of cash I would be doing this. By a nice duplex or triplex and create a nice owners unit and rent the rest. Done right and you can be living off the rental income from your initial investment.
As far as single family homes, you have a substantial amount to put down and could get yourself a 50% loan on a $1mil home and leave $250 to invest in another arena. Your mtg would be only $500k which would put you at around $3000/mo for a $1mil home, which is way less than you can even find a comparable home for rent. I feel this is a smart way to invest in a home because you create an equity rich position from the get go and in doing so you limit the out of pocket monthly by a big amount, also you limit the amount of interest you pay in the long term, thus increasing the strength of your investment over the long term.
Hope that is helpful!
Brian L. Mitry, SVP
Pacific Coast Properties
10 Universal City Plaza, 20th Floor
Universal City, CA 91608
I have several land listings in the Los Angeles area that may work for you. Land is in high demand this year. Contact me for listings that are not yet on the market.