Hello BP, I'm new to investing trying to get my first deal. There is tons of information overload. Are there any suggestions to put all my energy and where I'm wasting energy?
You'd need to provide a lot more information for anyone to critique your plan.
We do need more info, but to give you some simple advice to think about- what are you trying to achieve through RE? Define your buying criteria (cash flow? How much? Cash on Cash return? How high? Flipping? Are you looking for a certain percentage of a return or a specific dollar amount? How much? Think about those things, come up with some numbers that you are comfortable with and start analyzing deals on MLS, BP, Craigslist, etc. You'll soon find out if your numbers are realistic or if you either have to modify your criteria or work even harder to find a deal.
I want to start off wholesaling. I see people with direct mail, cold calls, bandit signs, etc. I don’t know where I’m gonna get my best return on a small budget. 200-400 a month.
@Jordan Yager Welcome. Welcome. Cali can be a tough nut to crack for newbies.
A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.
Then I tried rural Kern County and got a deal from a distressed homeowner in California City.
The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.
Have you considered an owner-occupied small multifamily for your first deal?
You only need to put 3.5% down, so cashwise it won't get in the way of other real estate goals you may have.
My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.
I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity so it definitely didn't compromise my cash reserves.
Spend 90% of your time actually looking for deals.
There's a meetup group in Modesto but I don't know how active it is. There's a meetup tomorrow in Sacramento if your willing to take the drive considering all the commute traffic heading north on highway 99.
Here's the link should you be interested:
Where to put your energy? I'd say spend more time on BP! Without knowing the stats, I can only assume most new members don't stick around long on here. But those who do get tons of value and great connections. I've met lots of awesome people in person from the forums here, and am in talks with a few about doing deals together, but you gotta stick with it!
And if you're looking to actually invest, I'd stay away from wholesaling, which is where a lot of people start to get "into real estate." That's a full-time job to do well, and is very different than buying rentals for cash flow.