Investor · Savannah, GA · Member since 2021 · 4 posts · 1 vote
Hey everyone, I'm currently seeking a market to begin wholesaling in. I live in California along the central coast and I'm debating whether or not to start my marketing campaign in cities like Salinas, Modesto, Fresno, etc. There are also several cities along the way up there that I plan to market in as well. I'm directly in the middle of LA and SF so I'm curious to find out how competitive wholesaling will be around here. With how insane the market is here in Cali, I'm wanting to know if investors are even still looking to invest in these types of areas. All this uncertainty with covid and interest rates seemingly bound to turn back upwards soon, I have my doubts. If anyone more involved with the market could shed some light on my situation, I'd really appreciate it. Thanks ahead of time :)
@Ryan Harvel Clearly not a single person buying in CA. It’s certainly not the populous state with a massive economy. Zero demand. I’m being facetious to get you to see that of course people are investing in CA. Perfectly fine to also invest out of state, I do. I don’t love the wholesaling route to get started. I’m an investor and I’ve tried to wholesale several deals. I’ve literally failed at doing it so I don’t anymore. Good thing I’m a successful investor and a failed wholesaler instead of just being a failed wholesaler!
@Brian G. I don't confuse real estate investing with living in real estate. So I don't house hack. I do invest in rentals out of state. In SoCal I develop and do some novel types of flipping.
California has a lot of people leaving but at the same time a huge housing shortage with little to no where to build in most cities, so the short answer is yes its still good, its good anywhere as long as you can get the property.
Check out the basics for any investment as stated below:
Where are the economic drivers?
Is there demand?
Is there supply?
Which side currently needs more support? - offer support to those that need it ie finding deals.
As far a which markets California is huge and the markets are very specific, I would suspect as a wholesaler your going to need to find your niche and work within it. I left CA in 2018 and don’t plan on returning but still track the markets as that is where my wife and I have family. Even within central coast the differences between SLO and Salinas would be massive. Just being on different sides of town can be big. After relocating to another state it’s my observa nearly impossible to know the niches you need in the RE market without living and breathing it regularly.
I concur with everyone else who has stated an opinion on whether or not CA is still a good place to buy. Unequivocally yes definitely a good place to invest.
Definitely people are still investing here. Keep in mind some investors are leaving the state due to rent control restrictions. However, I would argue that decreases supply. This means those that are staying behind will be able to charge higher rents and have a bigger pool of better tenants.
@Ryan Harvel I see you're from Paso, I'm a local agent down here in SLO. I'm definitely still investing throughout SLO County and other areas in CA. If you find any deals here locally please reach out to me and I'll look at your numbers and possibly be your buyer if you have anything that works for a flip or a multifamily. We also wholesale, flip & buy and hold just depends on the deal. Or if you need to JV a deal and need help with contracts and negotiations and underwriting then let me know. I'm here to help and love networking with other local BP members.