Hello from San Jose, CA!

16 Replies

Hi All,

I'm really excited to join the BP network! After going through some financial podcasts and articles, I'm determined to get to the point of financial freedom. Currently, I'm paying down my student loans and hope to be finished in the short-term. I'm taking the duration of my debt repayment as a time to learn more about real estate investing. 

I actually have a question for anyone with REI experience. The real estate around my area is more on the pricey side compared to other areas of the US. Investing in real estate around Silicon Valley would put a lot of my capital to use, so I was considering about investing out-of-state at more affordable areas. That way, I can learn the business and if the investment gets into a rough situation, I'll be able to learn from my mistake and hopefully not take a huge financial hit.

Any thoughts to this approach? I've heard the option of turn-key investments, doing your due diligence of an area, connecting with the right people, etc. But I'm still in the early stage of looking into this approach. Thanks!

- JC

Jonathan,

Welcome to BiggperPockets.  You have come to the right place to learn ALMOST everything real estate related.  I suggest you concentrate on paying off your student loans while honing your real estate skills.  I suggest you read a couple of books to get you in the right mindset before you start.

1) The Millionaire Real Estate Investor by Gary Keller

2) Think and Grow Rich by Napolean Hill

3) The Richest Man in Babylon

I suggest you join some local Bay Area meetups and rub elbow with local investors.  @Johnson H. hosts a monthly meetup at Whisper Cafe at 1085 E Brokaw Rd in North San Jose.  It's free to attend.  @Jeff Pollack hosts a monthly meetup in West San Jose.  I believe it costs $10 to attend.  @J. M. hosts a monthly meetup in San Francisco.  I think it's free to attend too.  I wouldn't join SJREI.  I think they're too expensive and don't have much to offer.  Looking forward to seeing you in the future at one of the meetups.

Welcome aboard.

Jonathan Codilla You mentioned 2 things that are going to bring in all the haters. "Out of state", and "turnkey" investing. This type of investing is debated everyday on here. There are a lot of people who got screwed doing out of state turnkey investing that gives it a bad name. It's risky but can be done successfully with the right people. Otherwise forget it. I started turnkey investing in Indianapolis and Birmingham a year ago. Out of 6 deals 1 was rotten and taught me several valuable lessons. But 1 in 6 isn't that bad right? At least the other 5 I can confidently say I am happy with the purchases and management. And that rotten one is now transferee to the manager for the other 5 and we are turning it around.
Feel free to contact me to if you have any questions.

Thanks for the welcome, @Minh Le and @James Syed! 

I'm currently reading The Millionaire Real Estate Investor, and will definitely make it to the other two books you suggested. Also, thanks for pointing me to the direction of those meet-ups. Sounds like a great opportunity to network and learn!

- JC

Appreciate the insight @Account Closed . It's great to hear from people who have experienced what I've only heard from podcasts or read through articles. I'll definitely take both of your inputs into consideration when deciding where and what to invest

Originally posted by @Account Closed :

Jonathan Codilla You mentioned 2 things that are going to bring in all the haters. "Out of state", and "turnkey" investing. This type of investing is debated everyday on here. There are a lot of people who got screwed doing out of state turnkey investing that gives it a bad name. It's risky but can be done successfully with the right people. Otherwise forget it. I started turnkey investing in Indianapolis and Birmingham a year ago. Out of 6 deals 1 was rotten and taught me several valuable lessons. But 1 in 6 isn't that bad right? At least the other 5 I can confidently say I am happy with the purchases and management. And that rotten one is now transferee to the manager for the other 5 and we are turning it around.
Feel free to contact me to if you have any questions.

Joey,

You're half correct IMO.  I believe the haters are individuals, who royally got screwed by out of state marketers and turnkey providers.  Others don't give a damn as their money is not on the line.  Some just throw in their two cents for whatever it's worth.  Free advice is worth what you're paying for.

I have seen some of your posts in the past.  You're playing a dangerous game by recommending others to buy out of state while you're still very green to the game.  It's different if you have had at least 5 years of experience under your belt before recommending it.  To me, you're still in the honeymoon phase with your out of state investments.  It would be a good data point when you come back here in 5 years and tell us how your out of state portfolio is performing. 

IIRC, @Rob Cee had a thread asking anyone who has successfully invested out of state for more than 10 years.  NO ONE raised their hand.  That speaks volume.  Although I know a few investors that have successfully invested out of state, just understand that the odds are against you statistically speaking.  @Jay Hinrichs knows it best.  ;0)

Last year, Jay mentioned that I could sell turnkey in B'ham with my connections in the Bay Area.  I could make $5k/transaction almost effortless, and my price would still be cheaper than other turnkey marketers and providers. Some shysters would claim that's value-added.  However, I passed on the opportunity. Do you know why?  :>)

I don't blame people for not knowing what they don't know.  I suggest you tread carefully.  Your good intention may end up getting people into something that they wished they had never gotten into in the first place.  Master Ooway said it best "One often meets his destiny on the road he takes to avoid it."  

I wish you the best of luck in your real estate endeavors.  

@Jonathan C.

Welcome to BP, Jonathan.  This is the source for RE knowledge.  As I always suggest, check out the "Learn" tab at the top of the page. There you will find some really great free resources such as links to the podcasts as well as some free ebooks. 

To address your question regarding out of state investments, @Account Closed (successful and reputable RE investor around here) once stated something to the effect of, "out of state is where California RE investors go to lose money." Its easy to be intimidated by bay area RE prices, but if you check out the average bay area home value for the last 25yrs you'll see quite quickly that the appreciation in this market is exceptional.  In most (the vast majority of) other markets appreciation is considered a gamble, not necessarily so in the bay area.  The trick is to figure out how to get in on it. (Btw, Minh, thanks for enlightening me on this topic).  Save and create other passive income sources so that you can buy in on a local property. 

Good luck and best wishes

@Account Closed "dangerous game". Your funny.  I agree with you that I am still very green but definitely have a lot of information and connections to share with others.   They can choose whether to listen to me or not.  That's thier choice.  It's funny that you mention Jay Hinrichs.  As he is one of the many experienced investors I have being learning from over the past year.  So the fact that I am learning from respected and experienced investors and passing on that exact same information to others with my own experiences on top of that has some great value to it.  You don't have to be experienced to give your opinion and knowledge.  We all have different knowledge and experience no matter what level we are at in the game.  

@Chris RG,

Thanks for the kind words.  I wish you the best of luck with your house hunting.  Just know where we are in the currently cycle of the housing market so we have no one to blame, but ourselves.  The market has gotten softer than usual in the last 2 months so is the rental market.  

@Jonathan C. and @Joey Noel

I just saw this post from another Bay Area investor, and I thought it was hilarious.  As long as you know what you're getting into, it's all good.  Have fun reading.  

https://www.biggerpockets.com/forums/311/topics/23...

@Jonathan C. welcome to BP! The San Jose Meetup at Whisper Cafe Minh Le mentioned is great as they do not try and "sell" you anything. I went for the first time last week and met a great group of people.

There are many of us in the Bay Area on BP so if you have any questions, feel free to reach out.

Thanks for the welcome @Ryan Landis ! I looked at the meet-up and saw that I just missed the October meet-up last week. I'll try to make it out in November. 

Just curious, what is the format for each meet-up? Is there a discussion topic or theme for each month? Or are these meet-ups a dedicated time and place where people can network and exchange experiences? Thanks!

@Jonathan C. the other members can chime in more as this was my first time at that specific one but it was just an opportunity to network and grab drinks/food. I know there are others that do go over a topic/training and then allow time to network. I learn best from speaking with others that have done what I want to so I really liked the setting of the group.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you