- maximum control over your property
- several options for utilizing equity that accumulates in your property (cash out refinance, 1031 exchange, sale)
- can choose to personally manage the property if it is local and you are so inclined
- maximum responsibility and liability for the property, so proper asset protection is important
- requires an investor with enough time to take on the responsibilities of essentially running a small business
- necessary to become at least proficient with all areas of real estate investing and property management; you can and will utilize various real estate professionals to leverage your proficiency in these areas, but a working knowledge of all areas is needed
Who might this type of investment be suited for?
- someone who wants maximum control over property acquisition, financing, management, and potential disposition of a property
- someone who has the time and motivation to learn the basics about real estate investing and property management and is also willing to seek out the right network of real estate professionals to help them succeed (real estate broker, lender, insurance agent, tax professional, property manager)
- perhaps you have inadvertently acquired property through inheritance and now find yourself to be a landlord
- someone who wants to personally contribute to the value of their property by renovating or rehabbing property that they acquire
- if new to real estate, start by reading some general real estate investing books and listening to podcasts on real estate topics to get you up to speed on general terminology and principles of real estate investing
- start networking and connecting with other investors both locally and in other markets you might consider investing in; BiggerPockets is great for this
- seek out and build a team of individuals in your target market to help you acquire, finance, and manage a property (real estate broker, lender, property manager, insurance broker)
- in addition to listings provided by a broker, continue to hunt for properties on your own and practice running the numbers (financial projections) on properties that look interesting; running numbers on hundreds of properties will help you become quite proficient and efficient at evaluating the potential of a property
- utilize your network to help support you in your goals: you will be amazed how willing people are to assist you and how good contacts you already have in your network will be able to put you in touch with more good contacts that you need in your network
- if setting up an entity to hold your property, be sure to work this out during escrow so the entity will be formed and ready when closing occurs; it is much more complicated to transfer property after closing as compared to setting up the entity beforehand and being prepared to close with that entity
- even after you have acquired a property, continue to learn and network; you never know where your next bit of knowledge or connection will take you!
Local (Southern California)
Feel free to reach out to us personally if you are in the Southern California region and let us know what local resource or real estate professional you are looking for. We would be happy to put you in touch with any number of local resources we know and utilize if it fits your needs.
In addition to the resources on this website, we recommend searching the forums and asking for recommendations on BiggerPockets.com regarding services or resources you are looking for in a particular market.