New out of state investor from Redlands, CA!

New Member Introductions
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New out of state investor from Redlands, CA!

James Gates
Real Estate Agent · Redlands, CA · Member since 2017 · 199 posts · 487 votes

Hello Bigger Pockets!

My name is James and I am a new and excited cash flow buy and hold out of state investor from sunny Southern California (Inland Empire, Redlands). Like many investors in California, the properties here are too expensive to rent for cash flow, so I have started looking out of state. In my day job and I am mathematics teacher in California's public school system (my wife and business partner is a teacher as well) and this profession offers me plenty of time off to work on our real estate portfolio.

I started my financial journey five years ago by focusing on educating myself in the world of Personal Finance (r/personalfinance). As I slowly pulled myself out of the debt from the bad choices made in my early 20's, my interests graduated towards the dream of financial independence and early retirement (FI/RE). From there it became apparent to me that the fastest way to financial freedom was from cash flowing real estate properties. My magic "freedom" number of cash flowing properties for my wife and I (assuming $200 net cash flow each) is 25 properties. Our goal is to work 10 years in the educational industry, build our real estate portfolio, and retire at age 40 with enough cash flow to work on wherever our lives take us without financial worry. 

I am interested in meeting motivated and positive like-minded individuals who share similar goals. Please feel free to reach out and connect! I am just starting my real estate journey, have spent the last six months reading every real estate book/podcast/video I could find (starting with Rich Dad Poor Dad of course). The most recent book I read was Mark Cuban's collection of blog posts How to Win at the Sport of Business. 

I just want to end this (first) post of mine with a quote I read this week that inspired me to finally put down the books/podcasts/videos, make an introductory post, and put myself out there to the Bigger Pockets community.

“A ship in harbor is safe — but that is not what ships are built for.” — John A. Shedd. 

So for those out there who may be reading this post and wondering how to start their real estate journey, stop lurking and start sailing.

Have a great day!

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Kristopher Gomez
Flipper/Rehabber · Riverside, CA · Member since 2016 · 130 posts · 105 votes
8y
Out of state investing is cool but you might consider joining up with a good local wholesaler "like me" I'm in riverside and I get deep discounted off market property's all the time. Forget cash flowing $200 a month...I just sold a house to one of my land lord investors in San Bernardino for 140k that is worth 220k...he put down 20% and is cash flowing $700 a month.
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  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    8y

    Hey James! My parents live in Redlands! I'm out there all the time (going out tomorrow night actually). I live in Venice. I also have only dealt with out-of-state properties, and not to be a super nerd but I minored in math in college so I totally dig that you are a math teacher :) And I of course stated with Rich Dad Poor Dad as well. 

    Reach out anytime if I can be of any help on the out-of-state stuff, or anyone on here, and I may cross paths with you in Redlands!

    0Reply
  • Kristopher Gomez
    Flipper/Rehabber · Riverside, CA · Member since 2016 · 130 posts · 105 votes
    8y
    Out of state investing is cool but you might consider joining up with a good local wholesaler "like me" I'm in riverside and I get deep discounted off market property's all the time. Forget cash flowing $200 a month...I just sold a house to one of my land lord investors in San Bernardino for 140k that is worth 220k...he put down 20% and is cash flowing $700 a month.
    1Reply
  • Sean Murray
    Commercial Real Estate Agent · Redlands, CA · Member since 2016 · 41 posts · 16 votes
    8y

    @James Gates Welcome to the Community! I have a very close family friend who, like you, invests in property out of state due to the fact it is tough to cash flow in California. His portfolio of SFR is spread out in states such as Texas, Ohio, Georgia, Indiana, and I think one in Nebraska. I had a recent conversation with him that I'd like to share. It may prove to be resourceful to you:

    How do you decide on what out of state markets to purchase into? Jobs, Jobs, Jobs. Research the Counties/Areas with the lowest unemployment and the largest employer base. Find where their manufacturing plants/facilities are. Connect with local agents to verify.

    How do you scale your business? By implementing systems so your business runs with minimal effort and autonomously. SFR are hard to scale once you reach a certain point. However, apartment buildings are much better positioned to scale your business. Now looking to purchase a multi-unit.

    Hopefully this is helpful to you James when evaluating investment opportunities out of state! I work in Redlands as a CRE Agent so if you ever have any questions or would like to meet for a cup of coffee to discuss further, let me know! Good luck!!

    0Reply
  • Tom Ott
    Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
    8y
    Originally posted by @James Gates:

    Hello Bigger Pockets!

    My name is James and I am a new and excited cash flow buy and hold out of state investor from sunny Southern California (Inland Empire, Redlands). Like many investors in California, the properties here are too expensive to rent for cash flow, so I have started looking out of state. In my day job and I am mathematics teacher in California's public school system (my wife and business partner is a teacher as well) and this profession offers me plenty of time off to work on our real estate portfolio.

    I started my financial journey five years ago by focusing on educating myself in the world of Personal Finance (r/personalfinance). As I slowly pulled myself out of the debt from the bad choices made in my early 20's, my interests graduated towards the dream of financial independence and early retirement (FI/RE). From there it became apparent to me that the fastest way to financial freedom was from cash flowing real estate properties. My magic "freedom" number of cash flowing properties for my wife and I (assuming $200 net cash flow each) is 25 properties. Our goal is to work 10 years in the educational industry, build our real estate portfolio, and retire at age 40 with enough cash flow to work on wherever our lives take us without financial worry. 

    I am interested in meeting motivated and positive like-minded individuals who share similar goals. Please feel free to reach out and connect! I am just starting my real estate journey, have spent the last six months reading every real estate book/podcast/video I could find (starting with Rich Dad Poor Dad of course). The most recent book I read was Mark Cuban's collection of blog posts How to Win at the Sport of Business. 

    I just want to end this (first) post of mine with a quote I read this week that inspired me to finally put down the books/podcasts/videos, make an introductory post, and put myself out there to the Bigger Pockets community.

    “A ship in harbor is safe — but that is not what ships are built for.” — John A. Shedd. 

    So for those out there who may be reading this post and wondering how to start their real estate journey, stop lurking and start sailing.

    Have a great day!

    Hello and welcome! Out of state investing is great when you live in a market like CA where getting an ROI is almost impossible.

    Best of luck to you!

    0Reply
  • Sean Hayes
    Real Estate Agent · Athens, GA · Member since 2015 · 98 posts · 27 votes
    8y

    Hey James! 

    Welcome to the community!

    I work with investors here in GA and would love to chat offline to see what it is you are looking for and how I can help you invest here in Ga!

    0Reply
  • Jeff Schechter
    Developer · Nashville, TN · Member since 2016 · 484 posts · 406 votes
    8y

    Good stuff @James Gates.  PM me if I can be of any assistance in learning about the Indy market.

    0Reply
  • James Gates
    OP
    Real Estate Agent · Redlands, CA · Member since 2017 · 199 posts · 487 votes
    8y

    @Sean Murray Wow, thank you for your input on deciding upon a market to invest. Absolutely I am interested in investing markets that have potential upside, rather than those that are tied down to an old economy. I also agree that SFR are hard to scale at a certain point, but their cheap pricing entry makes them a good start for a new investor. I'm looking to transition to multifamily down the line. I would definitely be down for some fresh coffee (Augies?) and to talk real estate!

    @Tom Ott Thank you for the kind words! 

    2Reply
  • Dan Zitofsky
    Real Estate Coach · DE · Member since 2013 · 64 posts · 85 votes
    7y

    HI James. I see this post was a year ago. Wish I saw it earlier as I was out there speaking at a wealth event. I'd love to see how things are going and if there is anyway I can assist you in your journey. Wish you all the best. 

    Dan Zitofsky

    0Reply
  • Brandon L.
    Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    7y

    Hello! @James Gates

    Welcome to BP, and congratulations on making the decision to invest in your future via real estate.

    I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.

    First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:

    https://www.biggerpockets.com/blogs/5868/52761-the-simple-guide-to-getting-started-on-bp

    The second is a post that will help get you focused with your real estate investing goals:

    https://www.biggerpockets.com/blogs/5868/52743-im-new-to-bp-any-advice-would-be-appriciated

    The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.

    https://www.biggerpockets.com/blogs/5868/52724-im-new-to-investing-how-do-i-find-an-investor-friendly-agent

    I love answering questions if you have any! Good Luck :)

    0Reply
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