Advice on first investment (100k to invest)

San Diego, California
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Advice on first investment (100k to invest)

Anais Rosales
Member since 2024 · 1 post · 6 votes

Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.

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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
2y
Quote from @Anais Rosales:

Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.

Hey Anais, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

[email protected]614-300-7535
Jimmy Lieu, Red 1 Realty4.9120 Reviews
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  • Jaime Daye
    Wholesaler · Orlando · Member since 2024 · 2 posts · 4 votes
    2y

    I think maybe you should consider land, or mobile homes. I’m in Orlando Fl, which is also an expensive market, however with 100k to invest I would start with land or mobile homes. Or consider a hard money loan to help with your first flip. There are some companies with 100% financing…

    0Reply
  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    Hey Anais, 

    there are some great opportunities in the Ohio markets. Many investors from California, are choosing to invest in the midwest because of the yearly returns making more sense in these lower priced markets. Ohio markets show up 3 times in Zillow’s 2024 hottest markets, with Columbus and Cincinnati taking the top 2 and 3 spots. I moved from Florida to start investing in Columbus due to the same reason.

    https://www.zillow.com/learn/hottest-housing-markets-2024/

    [email protected]614-662-1652
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  • Jacopo Iasiello
    Investor · Miami Beach, FL · Member since 2017 · 362 posts · 109 votes
    2y

    Hi Anais, It's great that you're exploring real estate investing opportunities with your dad! While California may present some challenges for investors due to high property prices and competition, there are still potential opportunities, as well as options in other states. Here are some suggestions to consider:

    1. Out-of-State Investing: Given the high cost of real estate in California, you may want to explore investment opportunities in more affordable markets outside the state. Look for areas with strong job growth, population growth, and rental demand. Consider cities in states like Texas, Florida, North Carolina, or Georgia, where real estate prices may be more conducive to your investment budget.
    2. Fix and Flip: Since your dad is interested in fix and flip, focus on identifying properties in target markets that have potential for renovation and resale. Look for distressed properties or outdated homes that can be renovated and sold for a profit. Conduct thorough market research and financial analysis to ensure there's enough margin for profit after accounting for purchase price, renovation costs, and selling expenses.
    3. Types of Investing: In addition to fix and flip, consider other investment strategies such as buy and hold rentals, short-term vacation rentals, or wholesaling. Each strategy has its own pros and cons, so evaluate which aligns best with your goals, risk tolerance, and investment timeframe.
    4. Financing: With $100k to invest, explore financing options such as conventional mortgages, hard money loans, private financing, or partnership arrangements. Since your dad has more capital to invest, you may be able to leverage his funds for down payments or renovation costs while using your real estate license to identify and analyze deals.
    5. Market Research: Whether you're investing in California or out-of-state, conduct thorough market research to identify emerging markets, trends, and investment opportunities. Look for areas with job growth, population growth, and infrastructure development that can drive demand for real estate.
    6. Networking and Education: Connect with local real estate investors, agents, lenders, and other professionals to gain insights, knowledge, and potential investment opportunities. Attend real estate investment seminars, workshops, or meetups to expand your network and learn from experienced investors.
    7. Risk Management: Real estate investing comes with inherent risks, so it's essential to manage risks effectively by conducting due diligence, having contingency plans, and being prepared for unexpected challenges.

    I hope it helps :)

    0Reply
  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 499 posts · 553 votes
    2y
    Quote from @Anais Rosales:

    Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.

    @Anais Rosales

    Have you thought about out of state investing? I'm originally from San Francisco, CA and started investing in 2021. It was pretty hard to find properties where the numbers and landlord laws made sense which is what ultimately led me to investing in Columbus, OH.

    The numbers and landlord laws out here made sense then, and they still do today. I've been able to get a healthy combination of both cashflow and appreciation from all my properties after a little TLC.

    Happy to share my experiences.

    [email protected]614-892-9184
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    0Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    2y
    Quote from @Anais Rosales:

    Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
    My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.


     Hey Anais, in a market like mine, Greater Cincinnati, LTR work best. Cash flow is possible in most areas, plus appreciation potential where you go. Same thing with NKY! Let me know if you have any questions!

    [email protected]859-443-4952
    Sam McCormack Realtor
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  • Travis Biziorek
    Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    2y

    Hey Anais, I live on the Central Coast of CA and invest in Detroit.

    It has a ton going for it and it's been extremely good to me. I have 12-doors there now and working on a duplex that's stuck in probate limbo.

    Happy to send you some resources if you're interested and share what's worked for me there.

    0Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 608 posts · 768 votes
    2y
    Quote from @Anais Rosales:

    Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
    My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.


     I would study up on becoming a private moneylender. You can offer short term high interest loans to experienced investors in your area to build up more cash. You can also learn a lot about fixing and flipping from those investors. Once you have enough money and knowledge, you can then enter your market and do your own projects. 

    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    @Anais Rosales curious as to how you think you can make your $100k work to do fix & flip or what...in California or Washington, given how expensive real estate is there?

    If you go out of state, how will you avoid being "eaten alive" by scammers?

    Many here will tell you to build your Core Four Team, but that's easier said then done. Many you pursue will be "wolves in sheep's clothing" just looking to make a fast buck off your inexperience. 

    So, trust no one and verify EVERYTHING for yourself, especially if you go out of state.

    If you want to know more about our market in Detroit, just hit us up:)

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  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2y
    Quote from @Anais Rosales:

    Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
    My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.

    Hey Anais, totally can relate with you being from an expensive real estate market - I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio. There's so many catalysts for population and job growth (Intel, Honda, Amazon, Nationwide Hospital, etc). I can definitely tell you there's still a lot of positive cash flowing and 1% rule deals and you get amazing appreciation. As an investor and agent here in Columbus Ohio, if you have any questions or want to connect, definitely reach out!

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9120 Reviews
    WebsiteView Page
    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    2y
    Quote from @Anais Rosales:

    Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
    My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.


     Have you considered house hacking in your local market? That could be a good way to stretch the cash you two have to invest. Another option could be investing out of state. $100,000 could get you several properties in the Ohio market. 

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    2y
    Quote from @Anais Rosales:

    Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
    My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.


     It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.

    As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    2y
    Quote from @Anais Rosales:

    Recently got a salespersons license in California with the hope that this would lead me in the right direction towards investing and discovered soon afterwards that California is actually one of the worst places for investing. Haven’t started as an agent yet, but more interested in getting a head start with the investment side of things.
    My dad and I have planned to partner up and get into investing together. He has no real estate background but does have more of the money to invest. Together we have about 100k to invest. Dad is more interested in fix and flip but open to other methods as well. Any suggestions on areas in California or out of state to get started? Suggestions for types of investing? Financing? Advice in general? I’m consistently between the Seattle WA area (also very expensive) and the San Diego area but open to better markets for investing.


     Start anywhere but Seattle & Cali bro!

    0Reply
  • Preston DeanBusiness Member
    Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes
    2y

    @Anais Rosales

    About 75% of my investors are from California.

    In Fort Worth, TX here are the kind of deals we get

    4 plex $539K total rent $4,400 (currently on market)

    house with back house $295K total rent $2,755 (currently on market)

    Duplex $310 total rent $2800 (right by TCU)

    [email protected]817-480-9452
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  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
    2y

    Sent you a message Anais that may answer some questions for you.

    0Reply
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