How low is too low for REI in Southern California?

4 Replies

I'm looking to get into REI with some family and close friends. If it's possible, I'd like to consider investing.

Assuming I don't have enough money to start as investor, how else can I tap this market and find profitable opportunities? 

@Andy M.  

Hey Andy. You can "drive for dollars" to find vacant homes in your market. If you do, you can then try to locate the owner to see what their plans are for the home and if it would help them out if you were to buy it from them. If you can get the property under contract at a great price, you could then either wholesale it or set up a JV arrangement with another investor.

Also, you can start attending your local Real Estate Investors Association (REIA) meeting and network with other investors. The head of my favorite REIA group likes to describe investing as a 3-legged stool, with the 3 legs being time, money, and experience. If you have time, but no money or experience, you can locate other investors that have money and experience, but no time. If you offer to help them with whatever they are not able to accomplish due to lack of time, they could be willing to let you be a part of their team in some capacity.

Originally posted by @Cornelius Charles :

@Andy M.  

Hey Andy. You can "drive for dollars" to find vacant homes in your market. If you do, you can then try to locate the owner to see what their plans are for the home and if it would help them out if you were to buy it from them. If you can get the property under contract at a great price, you could then either wholesale it or set up a JV arrangement with another investor.

Also, you can start attending your local Real Estate Investors Association (REIA) meeting and network with other investors. The head of my favorite REIA group likes to describe investing as a 3-legged stool, with the 3 legs being time, money, and experience. If you have time, but no money or experience, you can locate other investors that have money and experience, but no time. If you offer to help them with whatever they are not able to accomplish due to lack of time, they could be willing to let you be a part of their team in some capacity.

       Hey Cornelius, that's a good idea, i've never thought about that, but it does make a lot of sense.  These days it's really hard to have all three parts to become very successful, unless you've been in it for a while.  

Quick question for you, in your opinion would it be best to get started in this biz as an LLC, or similar business structure or just operate in your own name until everything falls in the right place? In other words, you already have several properties under your belt and business is thriving. The main reason for asking is the need to protect one's self from any legal issues.

What’s up @Demond Henson  . Actually, we only have one rental property. And after learning more on how to analyze rentals, it’s not doing as well as we had first thought, lol. I wish I could say business is thriving, but I’ve been out of town with my day job for the past 4.5 months and my fiancé has been planning our upcoming wedding, so we actually haven’t done much in the past 4 or 5 months. Unfortunately, I’m probably the wrong person to ask about setting up a business structure. It is something we chose to do, but I don’t have enough expertise to advise anyone else for or against it. Sorry I can’t be more helpful. But from what I have read on other posts, most people seem to think that you should get started by finding deals, and then you can set up your business structure at a later date.

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