First Time Investor - Advice Please!

18 Replies

Hello BiggerPockets Family!

I’m super new to the real estate world! I’ve begun to read real estate investing books and listen to real estate podcasts. I currently live in Los Angeles and would love to invest somewhere in Southern California. I’m wondering if anyone has any advice on investing in Southern California or any areas they would recommend for a new investor who doesn’t have a ton of money for a down payment. I’ve considered investing out of state, but I would prefer to be within a 50-100 miles of my investments in case anything goes wrong.

Thank you!

@Kaii Blanton there are less expensive places to invest in than LA proper but it is all about having accurate expectations.  Even with a cheaper property you won't see the same cash flow that you would in the midwest, because LA is more likely to appreciate in the eyes of the market.

Hi @Kaii Blanton !

I'm also super new the real estate investment space and am interested in hearing more input on this question! But from my experience sifting through forums - some viable options for RE investing seemed to be within: Inglewood, Hawthorne, Arts District, Eagle Rock, Highland Park, etc.

@Aaron K. Makes sense! I was thinking about the outskirts such as Palmdale, Norwalk, Pomona etc since LA itself is very expensive. I see you’re located in Riverside. Have you done any investing out there?

@Kaii Blanton @Cristine M.

Hello everyone, 

I think when you are a new investor there is a feeling of information overload and that can for sure feel overwhelming. One of the best decisions I made was to participate in local meetups in the area. I am a big fan of FIBI (Pasadena) and LAREI (San Gabriel) for the more formal arrive network and watch a speaker who will educate you on something they specialize in. I also co-host a meet up in Eagle Rock with @Adriel Liwag , which is a more laidback networking event where people from the area just get together and talk real estate, help answer questions or open up the perspective of how and what people are doing locally to invest. We also have a lot of people do out of state investing that come so it's a nice diverse mix. 

Some of the questions you will want to begin to ask yourself is the type of investor you want to be. I am sure you likely have your reasons why which will help direct the first question. In terms of suggestions, I think that will weigh heavily on those first two questions, and I would be happy to share what I do out here as well as some of the people I know. 

@Nabil Suleiman there’s most definitely an information overload. It’s almost like analysis paralysis with all the information! However, I definitely want to get involved in meet ups and meet different people! I want to hear different people’s stories and learn about various paths. I will check out the FIBI & LAREI! Also, please let me know when you have the meet up in Eagle Rock.

I would love to hear more about what you do! I've decided I want to start with SFH just to get my foot in the door. Then expand my portfolio to duplexes & 4-plexes and so on!

@Kaii Blanton

Ditto on everything Nabil said. One key factor from my experience of starting with $0 is making sure you screen the people you meet and decide to work with. Always make sure you guys are in alignment and that you share the same morals that way you can ensure you are collectively heading down the right path and doing it with people you know will truly look out for your best interest. Hopefully we’ll see you at our next meetup. 

Adriel 

Hey @Kaii Blanton !

How did you land on the 100 mile radius vs investing out of state? Have you read Long Distance Real Estate Investing by David Greene? It’s published by BP and does a really good job speaking to a lot of the fears that new investors have about investing out of state.

Do you plan on self managing, completing your own repairs/rehab, etc? If not, out of state may be a decent option.

I just got my first property under contract in Louisiana. It’s taken some time for me to build out a decent team there, but I’m finally gaining some traction!

Hi @Tony Robinson !

I landed on 100 miles because it’s not too far too drive lol. I actually haven’t read that book yet! I was originally thinking about investing in Las Vegas since the prices are more affordable, but I figured it would be easier to invest in LA!

Definitely don’t plan on doing the rehab by myself! I want to learn how to do some of it but definitely not everything!

Nice! Keep me updated on how that goes! I’d love to learn more.

100 miles is too far to drive for self management.  In Las Vegas, there is a law that requires the property manager must live within 60 miles of the rental property. It would be a violation that if you live 100 miles away and self-manage it yourself in Las Vegas.  

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