I started my RE journey early 2019 with my Wife. I read Rich Dad Poor dad, listen to Rich Dad Radio and BP podcasts. I read books and I go to Meetups, I mingle and listen. It has now been 7 months in the education section, I don't want to be stuck here if you know what I mean. I am ready to make the 1st purchase and I need your help.
I live in Orange County and this is the biggest challenge as I am sure many can relate. I have an Agent and I have my financing steps complete (loan approvals) so far I have a nice conventional FHA loan. There is nothing that makes sense to start in my area, the numbers are not working or barely logical to make the plunge. I am very careful and always risk aware as we all should be. With all of my education up till now I know where to start, but I feel like I can't because of where I live. I have to go out 1.5 hours away to start finding OK deals (we are looking into single family homes with large lots for ADUs to Multiplexes). We want to be able to manage our properties and screen our own tenants. My reason to invest in my area is simply because we can always move in and live in one of our properties in the future and we don't plan on leaving the OC.
We decided on Buy & Hold because we cannot have another 'job' and this makes the most sense. I work full-time M-F and have a side business that takes my nights and weekends time. My Wife is a full-time Asst. Director at an Elementary School and she is home by 7-8pm weekly. Buy & Hold is for us and we are used to having tenants, we have been renting our spare room for 5 years in our town home.
We are looking for advice and help from people that have experienced this and want to share their insights. How to over come the OC...
Rental Property Investor · Morgantown, WV · Member since 2016 · 235 posts · 135 votes
6y
@Francisco Franco I had the same problem when i wanted to start in New Jersey/New York. There are definitely strategies that work for real estate investors in OC, New York, and New Jersey. This usually consists of buying distressed properties and flipping them. That being said, when I was first getting started I did not have the resources, capital, or network to do this. Now I am starting to put together a great network where this is possible, but not quite ready for that plunge.
My advice to you is you have to look else where for the time being. Just this year I got involved in real estate and bought 4 properties and another one under contract. The first 4 are in a college town down south. I drive down there about every 2 months to check up on my properties and view more. This is a 6 hour drive, 1 way! You have to be committed. The 4th property I am under contract for is in Bethlehem PA which is about 1.5 hours from me. Same kind of situation, it produces amazing income.
The way I got started in these towns is I literally just called a bunch of listing agents and set up a bunch of appointments for one weekend. For example, I would go down to this college town on a Friday night, air bnb that night, see 6-10 different properties on Saturday, meet 6-10 different listing agents, and even if I don't like any of the properties I now have 6-10 different connections in a town I am not even from. I keep in contact with them all the time and I get a deal sent my way at least 1-2 times a month. Some of them being pocket listings. Befriend these people, be very nice when you meet them, ask them how they became successful in real estate, do they invest, get to know them. I did the same thing in Bethlehem PA.
Why listing agents? Reason is, they are usually more experienced, have more connections, and if you contact listing agents for Duplexs, Tri-plexs, Quad, etc they know the investing world. I literally only use listing agents and when I close they are duel agents. Some people may tell you this is not a good idea because listing agents are only in it to represent the seller. I have not found this to be the case. I go by a very lax attitude which is, most people are good people. This is so true and not many people are looking to screw you over because for 1 they are liable as a duel agent and two if you are an investor and they are good at what they do, you are more valuable to them then the seller. Also, if you are smart and know the game its impossible for someone to get the best of you. Trust but validate.
Anyway, this strategy works well. If I were you I would find a market near you that has a good rental market. (1-5hours away). Any property that looks interesting, call the listing agent, be friendly, tell them about yourself, and set one weekend to see like 5-10 different places. Try to make each person a different listing agent, so you are meeting as many people as you can. Give them your contact information and when you need to talk to them CALL THEM! A simple email saying "I am not interested in the property" is not going to get you a future lead. Call them, explain to them why you don't like it, get into a conversation with them, open up, and I guarantee you the next pocket listing they have they will let you know about it.
I am fairly new to the game but im telling you this strategy works. Right now I have 3 other deals on my plate that I still need to analyze, all pocket listings. Try it, and let me know how it works out. The long drives obviously suck but if you give up one weekend to make solid connections it will pay off huge. Get some coffee, beef jerky, bring ur wife/friend/gf, create a play list and make the best of it! Also renting out a dope air bnb helps!
I started my RE journey early 2019 with my Wife. I read Rich Dad Poor dad, listen to Rich Dad Radio and BP podcasts. I read books and I go to Meetups, I mingle and listen. It has now been 7 months in the education section, I don't want to be stuck here if you know what I mean. I am ready to make the 1st purchase and I need your help.
I live in Orange County and this is the biggest challenge as I am sure many can relate. I have an Agent and I have my financing steps complete (loan approvals) so far I have a nice conventional FHA loan. There is nothing that makes sense to start in my area, the numbers are not working or barely logical to make the plunge. I am very careful and always risk aware as we all should be. With all of my education up till now I know where to start, but I feel like I can't because of where I live. I have to go out 1.5 hours away to start finding OK deals (we are looking into single family homes with large lots for ADUs to Multiplexes). We want to be able to manage our properties and screen our own tenants. My reason to invest in my area is simply because we can always move in and live in one of our properties in the future and we don't plan on leaving the OC.
We decided on Buy & Hold because we cannot have another 'job' and this makes the most sense. I work full-time M-F and have a side business that takes my nights and weekends time. My Wife is a full-time Asst. Director at an Elementary School and she is home by 7-8pm weekly. Buy & Hold is for us and we are used to having tenants, we have been renting our spare room for 5 years in our town home.
We are looking for advice and help from people that have experienced this and want to share their insights. How to over come the OC...
Thank you BP community,
Francisco
If you insist on investing in Orange County with prices like they are, I can't help you. In fact, few can. Most of the folks I know in California are investing in places like Arizona, Nevada, Ohio, Tennessee, etc
Welcome to Bigger Pockets! BP is the ultimate learning center for real estate investment. At BP, not only can you network with other real estate investors, you can learn from the informative forums posted daily on the site, find properties that are for sale, and take free courses. You have come the right place and I wish you best of luck.
Rental Property Investor · Morgantown, WV · Member since 2016 · 235 posts · 135 votes
6y
@Francisco Franco I had the same problem when i wanted to start in New Jersey/New York. There are definitely strategies that work for real estate investors in OC, New York, and New Jersey. This usually consists of buying distressed properties and flipping them. That being said, when I was first getting started I did not have the resources, capital, or network to do this. Now I am starting to put together a great network where this is possible, but not quite ready for that plunge.
My advice to you is you have to look else where for the time being. Just this year I got involved in real estate and bought 4 properties and another one under contract. The first 4 are in a college town down south. I drive down there about every 2 months to check up on my properties and view more. This is a 6 hour drive, 1 way! You have to be committed. The 4th property I am under contract for is in Bethlehem PA which is about 1.5 hours from me. Same kind of situation, it produces amazing income.
The way I got started in these towns is I literally just called a bunch of listing agents and set up a bunch of appointments for one weekend. For example, I would go down to this college town on a Friday night, air bnb that night, see 6-10 different properties on Saturday, meet 6-10 different listing agents, and even if I don't like any of the properties I now have 6-10 different connections in a town I am not even from. I keep in contact with them all the time and I get a deal sent my way at least 1-2 times a month. Some of them being pocket listings. Befriend these people, be very nice when you meet them, ask them how they became successful in real estate, do they invest, get to know them. I did the same thing in Bethlehem PA.
Why listing agents? Reason is, they are usually more experienced, have more connections, and if you contact listing agents for Duplexs, Tri-plexs, Quad, etc they know the investing world. I literally only use listing agents and when I close they are duel agents. Some people may tell you this is not a good idea because listing agents are only in it to represent the seller. I have not found this to be the case. I go by a very lax attitude which is, most people are good people. This is so true and not many people are looking to screw you over because for 1 they are liable as a duel agent and two if you are an investor and they are good at what they do, you are more valuable to them then the seller. Also, if you are smart and know the game its impossible for someone to get the best of you. Trust but validate.
Anyway, this strategy works well. If I were you I would find a market near you that has a good rental market. (1-5hours away). Any property that looks interesting, call the listing agent, be friendly, tell them about yourself, and set one weekend to see like 5-10 different places. Try to make each person a different listing agent, so you are meeting as many people as you can. Give them your contact information and when you need to talk to them CALL THEM! A simple email saying "I am not interested in the property" is not going to get you a future lead. Call them, explain to them why you don't like it, get into a conversation with them, open up, and I guarantee you the next pocket listing they have they will let you know about it.
I am fairly new to the game but im telling you this strategy works. Right now I have 3 other deals on my plate that I still need to analyze, all pocket listings. Try it, and let me know how it works out. The long drives obviously suck but if you give up one weekend to make solid connections it will pay off huge. Get some coffee, beef jerky, bring ur wife/friend/gf, create a play list and make the best of it! Also renting out a dope air bnb helps!
Thank you all who have responded and offered your advice and experience, especially David Flores, I feel you are going through what I am, but succeeding.
I would like to ask you a few more questions. I understand what you are doing, but how did you get over the having cash on hand for all the down payments for the investing properties? Even If I went 1-5 hours away and found something I liked, I still run into the FHA loans are only good for non investing properties. I would need to live in them for at least 6 months from what I was told.
Rental Property Investor · Morgantown, WV · Member since 2016 · 235 posts · 135 votes
6y
@Francisco Franco, great question! Read my investment deals I have completed so far. I used seller financing to help me hurdle this barrier. Also, there are so many great private money lenders out there. Network on this site, I have ran into great people who can help you with down payments or sometimes fully fund the entire deal!
One section from the famous book Rich Dad Poor Dad that I will never forget is don't just say something doesn't work and forget about it. On every deal, no matter how ****** or good, ask yourself how CAN i make this work. Figure out how it would work for you, explain it to the listing agent/seller, and make an offer and see what happen. Worst thing that happens is someone says no.