New Investor Here in California

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New Investor Here in California

Andrew Pierce
Member since 2025 · 6 posts · 9 votes

Hi my name is Andrew, I'm a 22 year old retail banker here in California. I am looking to start getting my first rental property, I've been wanting to get into real estate but i always felt that i couldn't afford it but i have decided that its time for me to get serious about it. I have had a hard time identifying an affordable market for me because California definitely isn't affordable for me. I have given myself 1 year to save for a down payment i can realistically have 30k saved by next summer. I have been hearing a lot about no money down deals but don't understand them or how to acquire one. I really would like some advice on how to get started. I have watched thousands of YouTube videos by Robert Kiyosaki and Grant Cardone and it feels like they talk a lot about finding deals and getting into real estate but they don't say how. I want to start building my portfolio as soon as i can but i know its good to be patient. I honestly feel like a headless chicken listening to thousands of different advisors or "Gurus". Any who, that's my spiel, i look forward to being part of the community, Today is the day when i finally ask for help in my wealth journey.

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  • Jo Bradley
    Member since 2023 · 17 posts · 20 votes
    1y

    One way to do a no money down deal is to find home with a purchase price that is lower than the appraised value. As a simple example, say you sign an agreement to buy a home for $100,000. The bank does an appraisal prior to closing and values the home at $140,000. Your bank may allow you to take out a loan for the $100,000 plus your closing costs, (property taxes and title insurance) let’s say $105,000 to make it easy. It might be more if you need to escrow or pay a realtor but sometimes that isn’t a factor. The bank might not make you put any money down because you still have $35,000 in equity. 

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    • Erik EstradaBusiness Member
      Lender · Member since 2022 · 6k+ posts · 1k+ votes
      1y
      Quote from @Jo Bradley:

      One way to do a no money down deal is to find home with a purchase price that is lower than the appraised value. As a simple example, say you sign an agreement to buy a home for $100,000. The bank does an appraisal prior to closing and values the home at $140,000. Your bank may allow you to take out a loan for the $100,000 plus your closing costs, (property taxes and title insurance) let’s say $105,000 to make it easy. It might be more if you need to escrow or pay a realtor but sometimes that isn’t a factor. The bank might not make you put any money down because you still have $35,000 in equity. 


       Which lender is offering this? They will typically lend based on the lower of the appraised value or purchase price. This seems very new. 

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  • Min ZhangBusiness Member
    Real Estate Agent · Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Hey Andrew, welcome to BiggerPockets! Aside from the down payment, there are other costs that can come up after closing, so I wouldn’t put all your savings into the down payment. Always good to have a cash reserve.

    I’d start by figuring out what type of property you’re looking for. I usually recommend starting with a single-family or small multi-unit. For a conventional loan, you’re typically looking at 15% down for single-family and 20–25% for multi-family.

    Also, try to talk to a lender early on—that’ll help you know your budget and narrow down which markets make sense for you.

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  • Bernice RetzloffPro Member
    Memphis, TN · Member since 2024 · 234 posts · 100 votes
    1y

    Hey @Andrew Pierce!

    Sounds like you’re ready to take the next step, and you're thinking about this the right way. Out-of-state investing can absolutely work if you focus on a market where the numbers make sense and the local support is strong. Memphis is a great example! Affordable entry points, consistent rental demand, and landlord-friendly laws make it ideal for long-distance investors. The most important piece is building a solid team on the ground: an investor-savvy agent, reliable property manager, and good contractor or turnkey provider if you're not doing rehabs yourself. I’ve seen a lot of people succeed here by locking in with a team that handles the heavy lifting and keeps things running smoothly. If you’re considering Memphis or want help mapping out what it could look like, I’m happy to connect!

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