Hey guys. So me and a friend and his pops were talking the other day about investing in some property. I was wondering if there was anyone in this community that has some extensive or at least some knowledge about investing in property and selling it? The ins and outs, the loan process and etc.... I have more specific questions but first i was wondering if anyone here knows how things in Cali work?
If CL was up, I'd recommend contacting Biz. He buys A LOT of property in California and the rest of the US. I've purchased homes and I'm planning to buy in the Bay Area if my house in OKC will ever sell. First off, you'll typically need 20% to put down and need to show you can afford the monthly mortgage. Credit score, job, how long you've been at the job, and debt to income ratio -- They all impact how much of a loan you can get. If buying with friends / partners for the purpose of renting it out or flipping it, I STRONGLY suggest you see a lawyer and do up a contract. Things can get ugly really fast (think worst case scenario, like the house doesn't sell, they lose their jobs, and you're stuck with the entire mortgage yourself). Any time you're dealing in real estate, remember these 3 words: location, location, location. The Bay Area, which I've been researching a lot lately, is rebounding really nice. Now is the time to buy, because prices are gonna continue to rise. Assuming the water shortage gets straightened out. When looking at location, pay particular attention to crime and schools. These might not matter to you, but they do potential buyers. best of luck!
You're going to need to put at least 5% down. Sometimes they have first-time owner clauses where you can get away with 3%. California properties in general have a ton of re-sale value. Here is not the only place you could buy property though. Reason I say that is because median home prices in this state are significantly higher.
@John3:16 Good for you buddy! Where in the Bay? I just moved back to socal but let me tell you.....if you are sitting on cash I don't see that market going ANYWHERE. $1,000,000 for 1500 sq ft. 3 bdrm 2 bath, potentially no yard. This is anywhere on the Peninsula south of San Francisco. Obviously I'm generalizing. You can find good bargains all over, but the going rate is easily double the Los Angeles metro market. And that's saying a lot. Sadly those type of homes are getting gobbled up instantly. (sadly if you actually plan on living there).
The East Bay. I grew up in Hayward, but I'll live a little north of there (Pleasanton, Dublin, Livermore). Can still take BART. Lots to do. Still near SF and all that the Bay Area has to offer.
Any thoughts of buying homes in Stockton ca? I know of the area, the problems, but me and the two others were thinking if we could get multiple units in a neighborhood and fix her up, it'd be more attractive to potential buyers. So it is possible to get into investing with multiple people? Would any of advise that? Or stay away from that?
Finally uprooting out of OKC? Had no idea you were from California. I prefer the East Bay. I have family in San Ramon. East Bay is far far far less congested/concentrated than the Peninsula. Feels more suburban too. You retiring?
Oh yeah, I'm a California kid. Not retiring. Just trying to get near family. And I love the East Bay too. Easy to get to SF if you want to, but so much more laid back in the East Bay, without being boring.
I don't know a lot about Stockton, but if you can find homes to fix up and flip rather quickly, I'm sure it's as good as anywhere else. Investing with multiple people has its benefits (split the cost, split the work, and hopefully, split the headaches). Just get it in writing and realize friendships can end over business deals.
I don't know if you heard but by 2016 the BART is expanding to San Jose. Not that you'd go down there but it'll help reduce some of that 880 traffic. Good stuff John glad to hear it. We'll have to grab a beer and catch a Laker game when I'm up there visiting. Keep us posted on your situation and good luck!
