Starting Out in a Super Hot Market

[Jason Pachomski]

Hello everyone,

All told, between studying, marketing and up to present day where I have made a few offers but have had none accepted yet, I have been "involved" in real estate investing for about 9 months. I know... it's nothing in the grand scheme of things. I feel though, and I'm curious to hear from others who are in the same boat, that everything I've read and everything I'm learning about how to find "deals" or, at the very least, prospects (motivated sellers) is geared towards functioning in a down market. Of course, I suppose it makes sense that there is going to be a lot more distressed properties when the market isn't doing so good, but what am I to do NOW? 

I live in Los Angeles. Now, yes, I still have LOTS of learning to do about the market(s) here, but from what I've seen there is virtually no inventory right now, prices are higher then they've been in years and houses are being snatched up off the MLS mere days after they're listed -- and often for more than the asking price.

It seems like many of the "quick-turn" methods I've studied and have tried to pursue are geared towards people who have some reason to work with an investor as opposed to just listing their property with a broker and selling it. With a market like the one I'm in though, what reason does anyone have not to just list it and sell it? If houses are selling faster than they can be listed and people are getting more than what they ask, how does little ol' me compete with that?

Take wholesaling, for example. I know, I probably don't know enough to justify having an opinion, but honestly I have no clue how anyone wholesales in LA. Zero. (I bitched about this in a different thread as well, so if you've read that one my apologies for being redundant). The area is literally saturated with bandit signs. I've also always been told that the appeal to a seller when it comes to an all cash offer is how quickly you're able to close (as opposed to selling traditionally). Well, it seems like that's not so much a draw anymore when people know their house will sell quickly if they list it. AND they get fair market value for it.

I'm rambling, I know. I also know that my woes probably apply less to the buy-and-hold people -- a group whose ranks I hope to eventually join. 

Guess I just needed to vent, but if anyone else is starting out and, better yet, finding at least some success in a super hot market I'd love to hear about it.

Thanks!