Looking for someone to connect with

9 Replies

Hello BP members,

I will be moving to San Diego in 2 weeks to attend SDSU to continue my education on real estate. However, I feel completely stuck. 

I am looking for someone in the area that I can talk with about real estate investing, preferably about Lease Options or wholesaling. If you think that you might be able to help a new investor out, I would love to get in touch with you and set up a meeting at your convenience. 

Best regards,

Michael 

Do you plan to try these strategies here or another market and what made you decide on them as viable paths to income generation?

@Tim G. I don't have a lot of money, being that I am a college student with only a couple thousand. From what I have read, wholesaling and lease options tend to require little money to start, but I also know that the lease option is a fairly advanced method. However, the profit potential seems to be killer with lease options which is what drew my interest to the strategy. 

I was thinking that these two strategies would be a great way to start building a lump sum of cash so that I can eventually transition into small multifamily properties as buy&holds, and then eventually go towards larger commercial properties. 

As for where to try these, I am not entirely sure. But I want to see if I can learn something about wholesaling in San Diego. I just bought @David Greene 's book on long distance RE investing because I know that the midwest holds a lot of opportunity as far as minimal market fluctuations and cheaper properties. 

Any advice would be greatly appreciated! 

Regards,

Michael Faudoa 

Originally posted by @Michael Faudoa :
I don't have a lot of money, being that I am a college student with only a couple thousand. From what I have read, wholesaling and lease options tend to require little money to start, but I also know that the lease option is a fairly advanced method. However, the profit potential seems to be killer with lease options which is what drew my interest to the strategy. 

... 

As for where to try these, I am not entirely sure. But I want to see if I can learn something about wholesaling in San Diego. I just bought David Greene's book on long distance RE investing because I know that the midwest holds a lot of opportunity as far as minimal market fluctuations and cheaper properties. 

Any advice would be greatly appreciated! 

 What happens when you fail to obtain a buyer for the wholesale property?   What the ethical wholesaler does is purchase the property.  That requires capital.  Both lease options and good wholesale deals are difficult to find in San Diego.  

My advice is to skip the OOS property investing and to instead save up the down necessary for an FHA purchase of a local detached duplex (house hack) that has a value add. Do a BRRRR with the refinance occurring while owner occupied.

Good luck

@Dan Heuschele Thank you for the input Dan, I honestly hadn't looked at wholesaling that way, but it makes complete sense. You don't want to strain any relationships with the seller or else you could develop a bad reputation. 

What about the ethical lease option? Are lease options a viable way to get into RE investing with no or low money down? I am interested in the BRRRR strategy, but I am locked into a 1 year lease in my apartment complex starting in August, and I would love to start the process before then if at all possible.

Originally posted by @Michael Faudoa :

@Dan Heuschele Thank you for the input Dan, I honestly hadn't looked at wholesaling that way, but it makes complete sense. You don't want to strain any relationships with the seller or else you could develop a bad reputation. 

What about the ethical lease option? Are lease options a viable way to get into RE investing with no or low money down? I am interested in the BRRRR strategy, but I am locked into a 1 year lease in my apartment complex starting in August, and I would love to start the process before then if at all possible.

I have not seen a lease option in San Diego in quite a few years.  The issue is the owner’s risk of coming out behind due to the historical appreciation is greater than the upside.  So finding an owner willing to lease option will be challenging.   If you get over that large hurdle then a lease option can work if you actually save for the purchase and you do not get unlucky to hit a depreciation cycle.

Both people I have known that have had lease options chose not to exercise them because of a depreciation cycle.  I suspect they were simply unlucky.

Good luck

Originally posted by @Tim G. :

Do you plan to try these strategies here or another market and what made you decide on them as viable paths to income generation?

 Generally speaking you don't want to know. Let's just go with it's a passion. 

Can't be podcast or some guru saying it's EZ low cost way to get started. 

Originally posted by @Michael Faudoa :

@Tim Gordon I don't have a lot of money, being that I am a college student with only a couple thousand. From what I have read, wholesaling and lease options tend to require little money to start, but I also know that the lease option is a fairly advanced method. However, the profit potential seems to be killer with lease options which is what drew my interest to the strategy. 

I was thinking that these two strategies would be a great way to start building a lump sum of cash so that I can eventually transition into small multifamily properties as buy&holds, and then eventually go towards larger commercial properties. 

As for where to try these, I am not entirely sure. But I want to see if I can learn something about wholesaling in San Diego. I just bought David Greene's book on long distance RE investing because I know that the midwest holds a lot of opportunity as far as minimal market fluctuations and cheaper properties. 

Any advice would be greatly appreciated! 

Regards,

Michael Faudoa 

I would encourage you to look at the age of any advice in real estate as it’s often given when market conditions aren’t the same as the present.

Being a listing agent is the fastest way to stack cash in SoCal using sales and negotiating skills. 

The reason why is that it's a sellers market and there's fewer fixer deals that cannot be sold on the MLS. You'll miss out on listing after listing trying to lowball them and you could still wholesale the deal should you strike gold if you're an agent.

I agree with @Tim Gordon and @Dan Heuschele.

Consider becoming a licensed agent as your side job during school. Generate income using your sales and negotiating skills. Save up to buy a property where you can employ the house hacking technique.

I have a licensed 20-year-old college student working with me that is doing real estate deals while attending college, so it can be done!