Hi Everyone ! Brand New Rookie Investor Here

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Hi Everyone ! Brand New Rookie Investor Here

Chad MitchellPro Member
North San Diego County, CA · Member since 2023 · 3 posts · 4 votes

Hi Everyone !

My name is Chad Mitchell, teacher from North San Diego county Ca.  Looking forward to learning, growing and getting "off the hamster wheel".  

Looking forward to the journey that is Real Estate Investing.   Any advice for a newbie would help and be very much appreciated.  Who knows, maybe we can end up investing together.

Thanks !

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River SavaPro Member
Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
2y

Welcome to BP, Chad!

Always happy to connect with new investors. Feel free to send me a dm and we can chat!

[email protected]
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  • Cade Edwards
    Memphis, TN · Member since 2021 · 82 posts · 37 votes
    2y

    @Chad Mitchell welcome to BP and glad to hear that you're getting involved in real estate investing! This website has tons of resources when it comes to real estate. Did you have a particular market that you were interested in? 

    0Reply
  • Kenneth Donaghy
    Real Estate Broker · San Diego, CA · Member since 2016 · 355 posts · 195 votes
    2y

    @Chad Mitchell welcome to the forums, I'm in SD as well, happy to chat about your goals! 

    0Reply
  • Chad MitchellPro Member
    OP
    North San Diego County, CA · Member since 2023 · 3 posts · 4 votes
    2y
    Quote from @Cade Edwards:

    @Chad Mitchell welcome to BP and glad to hear that you're getting involved in real estate investing! This website has tons of resources when it comes to real estate. Did you have a particular market that you were interested in? 


     Hi Cade !

    So new to this my head is spinning...but in a good way ! I have a partner / friend that is not part of bigger pockets. We are both totally new to the REI space. He actually saw some properties in TN..I am in the stage of finding a reputable company to get my HELOC and get started...

    0Reply
  • Twana RasoulBusiness Member
    Real Estate Agent · San Diego, CA · Member since 2017 · 1k+ posts · 1k+ votes
    2y

    @Chad Mitchell Welcome! without understanding your goals and current situation, the advice I'd give to most is to get started with low money down in your neck of the woods by house hacking and build from there.  Buying out of state in cheaper markets can seem appealing and easier but I believe it is a bit more complex for a newer agent.  Start local is what I tell most, regardless of where they are.

    I personally started with low money down here in San Diego and have been slowly trading up for multifamily properties in better locations for higher long term appreciation.  I'm currently in a 1031 exchange to sell one of my single units in a working class area of east county to purchase a multifamily in coastal north county san diego.

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Chad Mitchell

    Welcome to BiggerPockets! It's wonderful to hear that you're excited and eager to start our adventure. The following guidance is intended for those who are new to real estate investing:

    Give yourself enough time to study and comprehend the fundamentals of real estate investment. There are a number of strategies, terminology, and market factors to understand. A few useful resources are books, podcasts, online courses, and local seminars.

    Specify your financial objectives. Having specific goals will direct your approach, whether it's increasing passive income, reaching financial independence, or diversifying your investment portfolio.

    A single-family house or a modest multifamily property would be good places to start for a reasonable investment. This way, you may get experience without going overboard.

    Make connections with local experts, mentors, and other real estate investors. Participate in neighbourhood get-togethers, sign up for online discussion groups, and cultivate connections with industry experts.

    Put your attention on learning about the local real estate market. Adjust your plan of action in accordance with the changing local market conditions, property valuations, and rental demand.

    Remember that there is no one-size-fits-all strategy for investing; every investor's path is different. Investigate many tactics until you discover one that resonates to you. 

    Chad, I hope your real estate investing endeavours are fruitful! Please don't hesitate to ask for advice if you have any specific questions as you go.

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  • Samuel DioufBusiness Member
    Real Estate Agent · Columbus & Cleveland, OH · Member since 2023 · 1k+ posts · 1k+ votes
    2y

    Hey Chad, 

    Welcome to BP! 

    If you have thought about investing out of state, I would pick a few markets and start networking within those selected markets. Picking what location to invest in will be a large decision that will shape your future in real estate!

    I personally live and invest in Columbus, Ohio, after moving from Florida. I started investing here for the long-term potential, seeing how much money is getting pumped into the market. Multiple, billion dollar companies are investing substantial amounts of money into our area, such as Intel, Google, and Amazon. Which in turn will bring plenty of other investors and general business into the market.

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  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    2y
    Quote from @Chad Mitchell:

    Hi Everyone !

    My name is Chad Mitchell, teacher from North San Diego county Ca. Looking forward to learning, growing and getting "off the hamster wheel".

    Looking forward to the journey that is Real Estate Investing. Any advice for a newbie would help and be very much appreciated. Who knows, maybe we can end up investing together.

    Thanks !

    >Any advice for a newbie would help and be very much appreciated. Who knows, maybe we can end up investing together.

    EDUCATE, educate, educate. 

    The increased rates have significantly increased costs without as significant rent increases.  This RE market is unlikely to be a get rich quick market of a few years ago  

    Conservative underwriting. If you allocate enough for maintenance/cap ex, you would be the first newly that I am aware of to have done so

    Recognize there is a poor relation between initial cash flow and actual cash flow over a long hold.  The best initial cash flow markets are so because they are perceived to be high risk and/or low RE appreciation/rent growth.  There is a tight coupling to rent growth and appreciation.  The higher appreciation markets have better rent growth resulting in better cash flow.  One of my San Diego properties has a 4% rent to purchase ratio using market rent.

    OOS has increased risks.  You cannot easily perform heroics locally if needed. 

    Cash flow may be needed to pay the bills, but the real wealth building is via appreciation. My lowest appreciating San Diego property has appreciated $2.6k/month. My highest is over $10k/month. No way RE can cash flow like this even if at 0% LTV.

    Recognize, contrary to what the Midwest people indicate, virtually all markets are negative cash flow with high LTV. In addition in virtually all markets the 1% rule no longer works at a reliable profit indicator at high LTV. I will give an example, in San Diego at 50% rent ratio (experienced investors should do better than this), the prop tax alone is 20% of the rent. It is my view it is a rare market that 1% at high LTV implies positive cash flow.

    Good luck

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  • River SavaPro Member
    Lender · USA · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Welcome to BP, Chad!

    Always happy to connect with new investors. Feel free to send me a dm and we can chat!

    [email protected]
    2Reply
  • Chad MitchellPro Member
    OP
    North San Diego County, CA · Member since 2023 · 3 posts · 4 votes
    2y

    Hi Sam ! 

    Thanks ! Thanks for the advice ! I have thought about investing out of state and want to. Thanks for the info about your area !  Would love to connect !

    1Reply
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