Newbie Investor from Long Beach CA

10 Replies

Hi Everyone, 

I'm been hanging around Bigger Pockets off and on for awhile. I'm from Long Beach CA. I would like to start investing out of California in order to gain financial freedom. Currently, I'm reading the Bigger Pockets books on investing out of state, and financing with no or low money down. 

I would like to continue working as a Software Engineer and build a portfolio to pay for my children's college in the future, take nice vacations, and pay my current monthly mortgage. 

I love to learn, and I would like to gain insight and knowledge from more experienced investors. I do not have a background in real estate, but I find deals and problem-solving fascinating. 

@Vanrith You Welcome! LA is a tough market to get started, so wise of you to look out of state. I'd look into some AZ or NV markets. Maybe call up some realtors and make some connections in places you'd be interested in. Get on some auto-email lists with realtors in your desired areas. This way, you can get eyes on a property as soon as it hits the market (or maybe before it hits the market if you have an awesome realtor).

Continue to learn about out of state investing and listen to the BP podcasts. There have been some great ones on investing out of state recently.

Financing can be tricky out of state. You don't have access to some of the low-down owner occupied loan options that allow you to house hack. You can always get creative, but you'll pretty much be held to conventional which will require 70-75% LTV. Another option is hard money/private money but that has its own set of risks.

Bottom line is keep learning everyday! Best of luck!

Welcome to BP, @Vanrith You !

I'm also in L.A. Used to flip in Saint Louis, but reined it in to try my hand at investing locally. The process was the same for me whether St. Louis or L.A.:

Education, finding a realtor to be "everything," finding wholesalers for deals, vetting contractors, the whole process. My realtor was fantastic. She'd go to any property and walk it for me with me with an iphone and me on the line. I'd record the video call and then look at it over and over to get a feel for repair costs and condition.

By the sounds of it you are looking to find rental opportunities?

Welcome Vanrith! Very cool on Software Engineering...I was an Aerospace Engineer before REI.

What kinds of out-of-state deals are you looking for, do you know? Or rather, what kinds are you interested in pursuing? If you know yet.

Hi @Ali Boone . I'm looking for rental properties for cash flow and appreciation. I'm open to turnkey and depressed small multi-family properties. I'm new to real estate investing, and I have a lot to learn about all aspects of real estate investing. 

Turnkey properties seem like a good idea if I can find the right people to work with. I'm also willing to try out rehabbing a rental. I have been looking in Indianapolis because I have relatives in Indiana. I usually go there for a couple of weeks in the summer. 

Originally posted by @Vanrith You :

Hi Everyone, 

I'm been hanging around Bigger Pockets off and on for awhile. I'm from Long Beach CA. I would like to start investing out of California in order to gain financial freedom. Currently, I'm reading the Bigger Pockets books on investing out of state, and financing with no or low money down. 

I would like to continue working as a Software Engineer and build a portfolio to pay for my children's college in the future, take nice vacations, and pay my current monthly mortgage. 

I love to learn, and I would like to gain insight and knowledge from more experienced investors. I do not have a background in real estate, but I find deals and problem-solving fascinating. 

 Welcome to the site Vanrith.

Originally posted by @Vanrith You :

Hi @Ali Boone . I'm looking for rental properties for cash flow and appreciation. I'm open to turnkey and depressed small multi-family properties. I'm new to real estate investing, and I have a lot to learn about all aspects of real estate investing. 

Turnkey properties seem like a good idea if I can find the right people to work with. I'm also willing to try out rehabbing a rental. I have been looking in Indianapolis because I have relatives in Indiana. I usually go there for a couple of weeks in the summer. 

Very cool. Rehabbing will of course be riskier since it's more involved and especially since you aren't local to the property. I've always gone the turnkey route (out-of-state from CA as well), partially to avoid that risk, but partially because I just don't want to deal with it. But if you have locals in Indy and will be there, that is definitely to your advantage. Indy could be a bit tricky to find fixer-uppers just because investors have saturated the market for so many years now that I'd imagine most of the fixer-uppers have been snagged by the turnkey companies, at a minimum. 

Get those spreadsheets out though and you'll be good to go! :)

Originally posted by @Vanrith You :

Hi Everyone, 

I'm been hanging around Bigger Pockets off and on for awhile. I'm from Long Beach CA. I would like to start investing out of California in order to gain financial freedom. Currently, I'm reading the Bigger Pockets books on investing out of state, and financing with no or low money down. 

I would like to continue working as a Software Engineer and build a portfolio to pay for my children's college in the future, take nice vacations, and pay my current monthly mortgage. 

I love to learn, and I would like to gain insight and knowledge from more experienced investors. I do not have a background in real estate, but I find deals and problem-solving fascinating. 

 Hello and welcome! Best of luck to you!

@Vanrith You

Welcome to the BP family! Good to have you here! Here are some recommendations for you:

Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

Wishing you the best!

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