Hello! Newbie from the East Bay, California!

Hello! Newbie from the East Bay, California!

Investor · Hayward, CA · Member since 2010 · 43 posts · 7 votes

Hello everyone!! Sorry in advance for the wall of text. My name is Chris, and I am an aspiring Real Estate Broker and Investor. I am located in the Bay Area of California, and I am really excited to learn, network, and grow my business with everyone here. I am taking my exam on 11/17/2010, and from there I hope to follow my passion of investing. I am focusing on wholesaling initially to gain capital, as I grow my real estate clientele. From there, I hope to fix and flip on the side and purchase my own buy and hold rentals eventually. I would like to finally buy multimillion dollar properties to flip, and gain a portfolio of apartment complexes with live in managers to collect truly passive income as my final investment goal. I hope to have, within 10 years, $10,000/ month in passive income, and over $10 million in property worth. In 5 years, I hope to have $3-4 million, and in two years, I hope to have purchased around $1 million.

For as long as I can remember, I have wanted to invest in real estate. In high school, I read "Rich Dad Poor Dad" (and many other Robert Kiyosaki books) which completely changed my focus and view in life. After graduating college, I went to work in a corporate environment. I worked there for 6 months, while taking classes to obtain my broker's license. I am now less than a month away from realizing that dream, and hope to start up my real estate business once I have passed the exam.

I am unsure if I wish to work primarily with residential buyers and sellers, focus on investing clientele, or work up to an apartment agent and work towards getting my CCIM. Right now, I have decided to start with residential real estate, and I look forward to learning to become the best agent possible. Does anyone have any experience in how to go about one of these possible paths?

My experience is mainly watching Television on DIY and rehab shows, countless upon countless hours of internet research, joining a real estate club, and several books such as Steve Berges "The Complete Guide to Buying and Selling Apartment Complexes" "How to Buy and Sell Apartment Buildings" by Stephen Vollucci. I have also read "What Every Real Estate Investor Needs To Know About Cash Flow... and 36 Other Key Financial Measures" as well as my course materials in Finance, Accounting, Property Management, Law, Practice, Economics, Principles, and Appraisal.

In other words, I have no real world experience. I have been a long time lurker here, but since I am so close to my dream I decided to sign-up so that I can hopefully give back to the community that has taught me so much. I am so excited on making the leap to investor.

I can't think of anything else, so please feel free to ask! Again, I look forward to learning and hopefully sharing what I learn with you all.

0Reply
25 views

Most Popular Reply

Real Estate Investor · Mountain View, CA · Member since 2008 · 234 posts · 32 votes
15y

Hi Chris,

I see that there is a more detailed plan and a solid dose of reality behind your long-term goals which is great! I'm mostly just an arm-chair real-estate investor so I'm not as qualified as many to speak to how realistic the timing is on your goals but getting $600-$800k in equity within 5 years seems like a very large task with a lot of things going just right and perhaps a bit of luck along the way. I would look at how much you expect to gain from each deal and how many deals you can expect to perform within 12 months. If you need to build up $150k in equity per year, in addition to just paying your own living expenses in northern California, you need to be bringing in $200k/year from the start which sounds pretty lofty for even an experienced investor.

Regardless, I love your attitude, desire to learn, and passion for investing and have no doubt that you will have success along the way!

-Tom-

See this reply in the discussion

21 Replies

Jump to latestLatest
  • Landlord · Seattle, WA · Member since 2010 · 3k+ posts · 1k+ votes
    15y

    Welcome to BP, Chris.

    Sounds like you have set some goals. You have found a great place to learn and network. You'll fin this s great resource as long as you invest your time an energy to get to know others here and continue to participate.

    Look forward to getting to know you better.

  • Homeowner · Dalton, GA · Member since 2010 · 108 posts · 13 votes
    15y

    hello and welcome to BP Chris this is where you can reach those goals and have plenty of people backing and helping you learn as you go you can post your deal before you sign for it and they will help analyze and help you decide to follow threw or run the other way

  • Real Estate Investor · Kalamazoo, MI · Member since 2010 · 681 posts · 241 votes
    15y

    Hi Chris,

    Do you have an agent's license already? In my state you have to work as as agent for 3 years before you can apply for a Broker's license. I would suggest you focus on one aspect at a time. It's difficult to be the best at residential, and commercial, and management all at once. You've got a great plan and goals, and sound like you're willing to put the necessary time in to be successful. That puts you ahead of most! I am a RE agent, and my husband is a Broker, we are also developer / builders. Our main focus right now is short sales nationwide.

  • Real Estate Investor · Los Angeles, CA · Member since 2008 · 48 posts · 3 votes
    15y

    Welcome.....

  • Real Estate Investor · Mountain View, CA · Member since 2008 · 234 posts · 32 votes
    15y

    Hi Chris,

    Welcome. It's good to have goals but I recommend having a trajectory to get to those goals. Going from nothing to $3-4 million in assets in 5 years is a tall task. I'd work on the smaller goals that will get you there first. How will you get your first client? East Bay is a slow market and agents are a dime a dozen. How are you going to find properties and investors for wholesaling? What about your ability to find properties and resources to successfully flip? Are you in a position to finance something right now?

    Hopefully it's just lost in the excitement of your bigger plans and you didn't mention it but I think you need to focus on a plan to get yourself off the ground. You'll never reach your end goal without a good short-term plan to get things started. You are about to finish step #1 when you take your exam - make sure you know what steps 2 and beyond are.

    Good luck. I look forward to hearing stories of your successes.

  • Real Estate Investor · BROOKLYN, NY · Member since 2010 · 60 posts · 4 votes
    15y

    with out a destination you can never arrive seams your on your way, welcome to BP

  • Investor · Hayward, CA · Member since 2010 · 43 posts · 7 votes
    15y

    Thank you all for the warm welcome!

    Jackie: In California, there is a minimum 2 year work requirement as an agent before you get your brokers. But, I have also found that you can bypass that requirement by graduating from a 4-year university and taking the necessary classes.

    In my excitement of posting this thread, I may have not elaborated clearly enough on my plans and goals. In terms of being an agent, I am unsure of where I would like to take my future (commercial, investor friendly, or residential). My current plan is to be the best as a residential agent. My first two years are focusing on gaining a client base, learning the real world aspects, as well as wholesaling to earn capital to invest in a duplex - 4-plex (after a while). I hope to purchase at least two properties in those years. In the next 3-5 years, I hope to buy and hold those rentals, (with a management company possibly), and focus on flipping rather than wholesaling while continuing to be an agent. From 5-10 years, I hope to convert all my real property to apartment complexes with live in managers, and on the side flip million+ dollar SFHs. My focus will be on building a reliable cash flow, from gaining capital and building wealth. I hope to continue to purchase commercial apartment complexes as well.

    My plans can, and most likely certainly will change.. but with Dedication, Hard Work, Persistence and a few other things.. I know that I can accomplish this goal.

    Tom: Thank you for your reply and questions. I do realize that this is a tall task that I wish to undertake, and I am working on the finer points as we speak. It is a rough estimate of where I believe I can go, with what I know right now. When I mentioned that I would like to have $3-4 million in 5 years, I did not mean in equity. Assuming 20% down with financing, I hope to have around $600,000-$800,000 in the properties. Do you think this is reasonable to amass in 5 years of investing?

    With wholesaling, I am getting ready to put an ad on craigslist, network with the local REIAs, as well as make some bandit signs once I am licensed. I have scouted some areas and see some opportunity, but I want a buyer's list before I put anything under contract. Also, I expect not to make a sale as a Realtor for 2-6 months. Finding clientele will certainly be difficult, but if I choose to work for one of the several larger brokerages, there are open houses that can be filled by me.

    As for investing in 2-4 plexes, flipping, and finally investing in 20+ unit properties, I will continue to learn, and they are are 2, 3, and 5 years out in my plan (respectively). I do not want to jump in and be 15 feet under water, and on the other hand I don't want to get paralysis by analysis.

    I believe that this should be the way to go, and that it is reasonable, as well as feasible. I appreciate all the feedback! If there is any holes in my plan, I would like to think them through and come up with a solution. I just ask that everyone please shoot away! Thank you all for the welcome again, as well as responding to my thread.

  • Mobile Home Investor · Spanaway, WA · Member since 2008 · 1k+ posts · 578 votes
    15y

    Welcome to the site Chris.

    Sounds like you have really got a lot of self education under your belt. If you look at the Rich Dad series, that is a pretty good foundation to get started with. Hope you can hit the ground running. As for getting a real estate license - been there done that and will not do it again. Same with stocks - will stick with real estate where things sometimes go wrong, but people still need a place to live.

    Again welcome and look forward to seeing your progression spiral upward.

  • Real Estate Investor · Mountain View, CA · Member since 2008 · 234 posts · 32 votes
    15y

    Hi Chris,

    I see that there is a more detailed plan and a solid dose of reality behind your long-term goals which is great! I'm mostly just an arm-chair real-estate investor so I'm not as qualified as many to speak to how realistic the timing is on your goals but getting $600-$800k in equity within 5 years seems like a very large task with a lot of things going just right and perhaps a bit of luck along the way. I would look at how much you expect to gain from each deal and how many deals you can expect to perform within 12 months. If you need to build up $150k in equity per year, in addition to just paying your own living expenses in northern California, you need to be bringing in $200k/year from the start which sounds pretty lofty for even an experienced investor.

    Regardless, I love your attitude, desire to learn, and passion for investing and have no doubt that you will have success along the way!

    -Tom-

  • Investor · Hayward, CA · Member since 2010 · 43 posts · 7 votes
    15y

    Tom,

    Thank you again for your reply. I may be shooting a little too high up, but I will not be disappointed if I do not reach my numbers. They are merely there as a target for me to try and reach. One motto I've heard is, I'd rather shoot for the moon and miss, instead of aiming for the gutter and hitting it. Once I am active, and have some experience, I can then change my targets to something that I feel are realistic.

  • Investor · Hayward, CA · Member since 2010 · 43 posts · 7 votes
    15y

    Just wanted to give the thread a quick update. I took the California Broker's Exam up in Sacramento on Thursday, November 17th, 2010 and found out today, Monday, November 22nd, 2010 that I PASSED!!!!

    I am really excited to "hit the ground running" as it is said, and will continue to update all of BP on my progress. Woohoo!

  • Real Estate Investor · BROOKLYN, NY · Member since 2010 · 60 posts · 4 votes
    15y

    welcome Chris you are in the right place,
    good luck.

  • Real Estate Investor · Kalamazoo, MI · Member since 2010 · 681 posts · 241 votes
    15y

    CONGRATULATIONS, Chris!

    That's a great accomplishment, and one step closer to your goals.

  • Jared RineBusiness Member
    Lender · Sacramento, CA · Member since 2009 · 1k+ posts · 277 votes
    15y

    CONGRATULATIONS and Welcome to BP!!

    Jared Rine United Lending Partners53 Reviews
    View Page
  • Pleasant Hill, CA · Member since 2008 · 428 posts · 43 votes
    15y

    Hi Chris I am also in the East Bay Area near Concord. Maybe we can connect sometime?

  • Real Estate Investor · Member since 2010 · 13 posts · 0 votes
    15y

    Hey Chris, congrats on passing! Your goals are similar to mine as a read them.

    I'm in the same boat in regards to a broker's license. College degree in lieu of experience, etc. Which leads me to ask how you studied for your exam? Thanks.

    Congrats again!

  • Pleasant Hill, CA · Member since 2008 · 428 posts · 43 votes
    15y

    I've found the best source for studying for Real Estate Continued education for me personally has by far been http://ProSchools.com

    Price if very affordable too. When I took my tests I was very confident in all my answers because of their programs.

  • Real Estate Investor · Member since 2010 · 13 posts · 0 votes
    15y
    Originally posted by Jason Wheeler:
    I've found the best source for studying for Real Estate Continued education for me personally has by far been http://ProSchools.com

    Price if very affordable too. When I took my tests I was very confident in all my answers because of their programs.

    Thanks for the heads up Jason.

    I see they have CE for brokers, but they don't seem to have prep materials for the broker exam. Anyway, I'll keep them in mind.

  • Investor · Hayward, CA · Member since 2010 · 43 posts · 7 votes
    15y

    Thanks again all!

    Jason- I actually took a few classes over at DVC! I think I was a stone's throw from you. Feel free to reach out to me anytime.

    iGSR96- I used Allied Schools for some of my online classes, and they have some test prep materials. The booklet and DVD's are virtually identical, the only difference is the DVD's have some guy telling you what is written in the book.

    I personally didn't enjoy the test taking material, but I think that it did help a little bit.

    When I took the exam, there was a lady there who was taking it her second time. She told me her boss gave her some test material known as "expert" something or other, and she said it was the best resource she used. It supposedly had identical questions from the test in their materials.

  • Real Estate Investor · Member since 2010 · 13 posts · 0 votes
    15y
    Originally posted by Chris__H:

    iGSR96- I used Allied Schools for some of my online classes, and they have some test prep materials. The booklet and DVD's are virtually identical, the only difference is the DVD's have some guy telling you what is written in the book.

    I personally didn't enjoy the test taking material, but I think that it did help a little bit.

    When I took the exam, there was a lady there who was taking it her second time. She told me her boss gave her some test material known as "expert" something or other, and she said it was the best resource she used. It supposedly had identical questions from the test in their materials.

    Thanks Chris. I'm using Allied as well and I'll keep an eye on the other prep material just in case. :wink:

    Keep us posted on your ventures. :rock:

  • Pleasant Hill, CA · Member since 2008 · 428 posts · 43 votes
    15y

    Very nice Ted. DVC is about a two minute drive from my house! It was great speaking with you earlier and looking forward to working together sometime.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.