Hello everyone!! Honestly, I'm going to get straight to the point... I live in Bakersfield, CA and I'm looking for any advice or help from someone who has experience in Real Estate Investing. I'm a newbie to Real Estate Investing, but I been listening to the BiggerPocket Podcasts for while now, I believe its time to take the next step and take action. I really love the idea of the BRRRR concept, I think I would want to pursue that route. I'm driven, motivated, and super excited to begin!! Hope someone all can help (:
Congratulations on getting started. Kern County is one of my favorite areas to find undiscovered opportunities. The missing piece for me was developing the skills to solve problems the majority of my competition can't. Otherwise you are just competing and grinding for crumbs in hot markets like we are in now. Best of luck!
Fernando - In the last 60 days there were 46 buildings that sold in Bakersfield that were fourplexes or larger. The average price per unit has appreciated 5.7% since January 1, 2021. The GRM is now 10.85 and the average price per unit is $102,905. Values have now recovered 98.22% from the all time high in 2007. In the current sellers market there is 5 buyers for every 1 listing that hits the market. The low interest rates with opportunities to still receive cash flow is driving the market in Bakersfield. You have the right mindset and strategy for Bakersfield. Keep in mind it is a long term endeavor. Good Luck in your efforts.
@Marc A. Thurston thank you so much Marc! I’m going to keep striving for my goals in investing ! Any other words of advice you may have for a beginner??
@Fernando Ferrel II BRRRR is a great way to produce wealth. A non-Bakersfield example, but the percentages are roughly the same in most regions.
Purchased a place for $50k, $25k rehab and it appraised at $110k after rehab. Was then able to refi back out for 75% of the new value, so about $80k. The original loan was $65k ($50k purchase + 25k rehab, less $10k downpayment). So $15k net plus small closing costs.
So I got my downpayment back, still had $30k equity in the property, plus it was cashflowing as a rental. (Mortgage was $550 per month and it brought in $1500 rent, although there are other expenses of course).
Point being, a great win-win situation. Since I got my downpayment money back thru the refi, I had cash to go and do it again!
@Tom S. This example is broken down great! Thank you Sir really looking forward to BRRRR
Continue to network with individuals in the investment community and learn all that you can. The learning aspect will never stop as the business constantly evolves. I think you will find multifamily investors are very helpful. I was fortunate enough to find two mentors who encouraged me and led by example. BP is a great resource and I think if you research the internet you will find some other resources on the Bakersfield Multifamily market and investing in general. When you are driving in your car, there are a wide variety of Podcasts on the topic that you can listen to daily.
Once you develop market knowledge, it will make your first purchase much easier because you will have some confidence. Don't stress about making a mistake, all investors make mistakes occasionally, its just a matter of learning from your mistakes and not repeating them.
I have been involved in the industry for 31 years and my only regret is that I wished I had started younger like you!
@Marc A. Thurston A big thank you Sir!! I’m looking forward to find a mentor to really show me the ropes of the industry! Once again thank you and have a great day(:
@Fernando Ferrel II Nike: "Just Do It!"
You could go see my buddy Bill Tan at LAREIA!
@Mike Hurney your right I just need to make that leap. And Bill Tan I will keep him in mind, do you mind if I ask how I may contact him?
Welcome @Fernando Ferrel II ! Bakersfield is one of the few areas in California where cashflow is still possible. Inventory is very low so it can hard to put together deals but it is still possible. If you want to network and learn from other locals, check out local meetups. I host a meetup for Bakersfield investors. Right now it is on zoom but we used to meet at Rusty's pizza. Hopefully we can do that again soon.
@Gene Hacker hey Gene, can you please let me know when you guys will be meeting again??
@Fernando Ferrel II , We meet on the third Thursday of each month. I will send you message with a link.
Congrats to you for your ambition! If you are looking to connect with someone for some guidance or advice, feel free to reach out. I also recommend you read this article I wrote for Bigger Pockets titled How to Invest in Real Estate Before Turning 21. Once you've read it, let me know your thoughts and if you have any questions. I am a high school teacher in Colorado and I am always looking to help young people get started in real estate investing or help in any way I can. Let me know if you want to chat sometime. https://www.biggerpockets.com/
@Dan Sheeks Hey Dan!! I’m definitely going to take you up on your offer and reach out to you for advice and guidance thank you so much! I will get back to you soon when I’m done reading that article. Have a great day and talk to you soon!