New and Painfully Hungry.
Hello BP community, my name is Austin. I’m excited to dive into the mix and learn from the many intelligent and experienced users of the BP forums.
I’m completely new to real estate investing. I’ve done some learning over the past few weeks. I’ve accumulated a little bit of knowledge about the industry. I’m posting this to introduce myself and hopefully get some beginner advice. I’ve been listening to the Bigger Pockets podcast. There’s been lots of good info there, but there’s so much of it and it’s not all lined up for a beginner (not saying it should be). But there’s been a lot of sorting and sifting I’ve had to do thus far.
I'm 27 years old. I don’t have large sums of capital for investing. I don’t have any connections in the RE world (yet). I do have time, intelligence, focus, and hunger. I work as a freelance carpenter, mainly for events and some TV shows, so I can control my availability more than someone with a 9 to 5.
I've been looking into wholesaling as a means to generate quick(ish) capital in order to fix/flip or BRRRR or whatever else I find appealing. But I don't know how to go about learning my market (LA County), finding sellers (should I look for on or off-market properties? How would I find them?), or estimating repair costs.
I suppose I need a mentor. Perhaps I could offer my carpentry experience and labor to an experienced fix/flipper in exchange for guidance. The BP podcast talks a lot about adding value to a mentor.
Anyways, thanks for reading this and offering me any friendly greetings and/or advice!
If I woke up in L.A. and needed start over from nothing, knowing what I have learned over the last 20 years, the first thing I would do is to move to a "normal" real estate market where homes can be purchased for under $100K. The second thing is to learn that market very well. Where people are buying and where people in that town are renting. Once you know that market very well, you will be able to identify a good deal when you see it. I am talking Off-market deals. Once you are a millionaire doing this, you can move back to L.A. if you want.
Anthony makes a point worth considering, Austin. LA County is NOT an easy market to get started in, and a move to a more typical housing market could be a good option at this stage in your investing journey.
Welcome to the BiggerPockets community, by the way!
Hey @Austin Laubacher, way to put yourself out there. I'd recommend a few things:
1) Consider househacking a small MF building (anything 2-4 units) to live cheaply and gain equity.
2) Pay for a mentorship course that you trust – a lot of people frown on paid courses, but often times you will not be able to gain much from a mentor that you have not paid for their time. Wholesaling sounds like it would be up your alley since you need to build more capital at this time.
3) Look to work with flippers/investors in your area. Post your services in local Facebook real estate investment groups stating you are looking to work for investors. Investors are always looking for quality workers.
4) Slash your living expenses. If there's anything unnecessary, cut it. I got started in 2017 by saving up $60K over a few years at my W-2 job, buying 1 property that I flipped and went from there. It takes time to accumulate reserves and money to work with, but you can accelerate it by living frugally.
@Austin Laubacher Welcome to bigger pockets! One thing you could do is start going to local meetups. You'll meet other real estate investors, learn what others are doing, and eventually find a way to provide value to someone you connect well with. If wholesaling is what you want to do, maybe you can start working for a wholesaler on the side and learn from him/her!
Surround yourself with people who are already doing what you want to do and find a way to provide value to them without expecting anything in return!
Good luck!
Sorry for the late replies everyone. I became a little discouraged after receiving advice to move out of LA.
Thanks @Anthony Dooley and @Brandon Vanderford for the input. Unfortunately, finding a new home isn't a reasonable option for me right now, so I'll have to stick to where my roots are here in Los Angeles. But I'm aware that the odds may be in favor of those with more money and connections.
And thank you, too, @Juan V Lopez for the step-by-step recommendations. I'll do more research as to what "househacking" is. Although a paid course may be the way to go, there are just so many of them and most seem to overpromise. I definitely aim to slash my living expenses! I cook most my meals and don't buy unecessary items....usually.
@Doug Spence: I think your response is the best immediate action I can take. I took a little heartbroken breath from studying real estate investing after I was advised to move out of LA. It just isn't an option for me right now. And, I'd rather not. Now that I'm regaining my courage, I think the next logical step is to dip toes into some meetups.
Thanks, everyone!