Looking to Get Started in Santa Barbara or Elsewhere

Looking to Get Started in Santa Barbara or Elsewhere

Missoula, MT · Member since 2017 · 1 post · 0 votes

Hi everybody! Thanks for checking out my intro post!

My name is Alex and I'm looking to quit working my job in retail sales and get into REI as soon as possible.

First of all, I live in Santa Barbara, California. I'm not set on staying here, and I work for a company with locations all over the US and I could transfer fairly easily if I wanted to. If there is a market that is better for getting started, I'm open to moving. I've been considering the following locations for personal reasons: Washington, D.C.; Denver; New York City; Spokane; Seattle. But I'm also curious about what markets in the US are good ones with high potential for growth.

I have only a few thousand dollars saved, but I do have a few thousand more that my dad has been investing in mutual funds for me for the past few years. If he knew that I was going to do something smart with it, I don't think it would be a problem for him to return that money to me as well. 

I eventually want to own rental properties and have a bit of passive income from that, but I don't think that I have enough capital to put a down payment on a property on my own. In addition, there's always the chance that it'll take some time to find tenants and I'd be in a tough spot having to pay that mortgage myself.

Because of that, I'm thinking that maybe it would be better to start with something like wholesaling or flipping, because it seems like there are more opportunities to find investors to back you in operations like that. However, my experience is very limited and I could be completely wrong on that. I appreciate any and all guidance on where would be a good launching point for me. 

I have been reading the forums and listening to a lot of the BP podcasts, starting to learn the lingo, and going through the Ultimate Beginner's Guide. Next on my reading list are Rich Dad Poor Dad, The Book on Investing in Real Estate with No (and Low) Money Down, and Real Estate Investing For Dummies, just to get started and get some ideas. 

I attended a two-hour FortuneBuilders seminar last week, and was not surprised to find that it was one big sales pitch for their three day event. But it did give me a couple ideas, even if there was no substantial info. I've read here on the forums that there is nothing to be learned from programs like those that can't be learned on your own through other resources, so I don't plan to pursue their course any further. 

I've started to look at properties on Trulia, as well. But mostly all I've found is that I can't afford even a 3.5% down payment on any multifamily properties nearby. 

I plan to attend the SBREIA meeting at the beginning of next month, assuming I get that day off of work. I hope to start networking and get some useful info there. 

Main Questions: 

1) How do I find a mentor near me and form a mutually beneficial relationship with them, while still working full time at a  retail job with unpredictable hours? 

2) Where do I look for deals? I've tried Trulia, and I don't have access to MLS.

3) Should I get my RE license?

4) What aspect of REI is best for building capital if I want to transition to full time REI and quit my job?

Any and all help or advice would be greatly appreciated! I'm looking forward to being a part of the community and getting into a field I can enjoy putting my time and energy into!

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  • Investor · Oxnard, CA · Member since 2014 · 438 posts · 187 votes
    9y

    1) How do I find a mentor near me and form a mutually beneficial relationship with them, while still working full time at a retail job with unpredictable hours?

    - you can attend the REIA meetings as you mentioned and then ask any potential mentor what it is that you can do to help them grow their business.  If you can add value to them, they may find a way to reciprocate or take you under their wings. 

    2) Where do I look for deals? I've tried Trulia, and I don't have access to MLS.

    - driving for dollars, craigslist, direct mail, SEO, pay-per-click, wholesalers, networking, etc. Just for the record, redfin.com has almost the exact same info as the MLS.

    3) Should I get my RE license?

    - My guess is 50% of people are going to say yes and the other half are going to say no. My question would be what are you going to do with your license if you get it?

    4) What aspect of REI is best for building capital if I want to transition to full time REI and quit my job?

    - probably wholesaling and/or flipping, but they are far from easy and take either a lot of time or money (or both). 

  • Denver, CO · Member since 2016 · 20 posts · 7 votes
    9y

    Hey Alex, I'm a new fix & flipper, so take my advice with a big grain of salt.

    I chose fix & flip because I wanted to focus full time on REI, could afford to spend several months getting up to speed, and it's faster in terms of cash flow compared to rentals. The downside is it it takes a lot of hustle and marketing to build a deal pipeline, and it's more than a bit intimidating if you're like me and don't know much about construction (the biggest cost minefield besides the price of the house itself).

    Denver is an incredibly hot and competitive market, so wholesaling and fix & flip require you to be fast and fearless. It's also not cheap. DC & New York are equally competitive and even more expensive. I don't know about Spokane, but one thing you can do is just Google for median home prices for those areas and look at Trulia stats for # of transactions, days on market etc.

    If I were younger and didn't have much money, I would probably spend six months or so just going to meetups and reading every book I can on the subject. Listen to podcasts too. Bigger Pockets' is good, but it covers a huge variety, so much that it can be overwhelming. You might want to pick a particular area that interests you and go deep on that. For example, I've been working my way through the entire Flipping Junkie podcast because it focuses just on fix & flip.

    Avoid high priced seminars, but it's probably okay to spend money on less expensive online training courses of various types. 

    But read books and most importantly meet a lot of people first. Don't worry about gaps in your knowledge. Ask questions about the things you don't know about. In my experience most people in REI are very friendly and helpful.

    Also, go to as many open houses as you can. Get a feel for what to look for when buying a house and the relative value of various neighborhoods.

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