Where to start my career? Need advice..

Where to start my career? Need advice..

Vallejo, CA · Member since 2017 · 50 posts · 9 votes

Hey everyone!!

I'm kind of stuck inbetween a rock and a hard place... and was hoping I could get some advice..

So I currently live in Vallejo, Ca. and I'm originally from San Jose, Ca. & I'm a licensed real estate agent here in California. I am still not associated with a broker. I was just able to send out an availability at my job to work less hours (I work at T-Mobile as a sales rep in Fairfield) The reason for this is because I am going to call a few brokers who sent me cards through the mail and I'm going to see who would be the best fit for what I want to do. I'm going to spend more time analyzing deals and educating myself about my market. I'm also going to tour my local market more thoroughly, I was thinking of going to a few open houses to see what everyone is offering and to figure out what the rents are going for and what the security deposits are going for. 

My goals:

End of 2018 - be a proud owner of my own rental property (preferably fourplex due to getting an FHA loan and househacking & lack of capital)

- work as a real estate agent for a broker who owns rental properties (I would love to be able to work with someone who is knowledgeable in Buy & Hold strategies, if I'm going to use my time might as well use it doing something that the broker can get help on at the same time learn about the rental investing business

By end of 2020 - have 10 rental properties and scale out my business

I ultimately want to help manage an apartment complex of at least 50 units so in the future, I would be able to manage my own huge apartment complexes!! & throughout time eventually start more exciting businesses!

What I'm stuck on is that I've been looking online at properties in different parts of the country and California is just really expensive. I would love to move out of state to be able to meet new people and to be able to travel throughout the country. 

I have my real estate license in California, so it only makes sense to stay in California and get the experience here. I've lived in Vallejo for almost 5 years already. I know the good and the bad parts of town. I read online that Vallejo is the hottest market in the US right now due to unaffordable housing throughout the bay area and it's true, Vallejo is the cheapest in the Bay Area but Vallejo also has it's disadvantage of it's bad reputation due to gang violence. I personally love Vallejo and if I could I would stay here and help this city grow and prosper. 

My advantage of staying in Vallejo and investing here would be that I know the local area. I have just started running the numbers on a few properties here that I've found online, but I need to do way more so I can better understand my market. Another disadvantage would be that some properties are sort of old now so I'm assuming that there would need to be major repairs done before it could be rent ready.  I was looking through the citys' website and looking at all the building permits and it doesn't look like Vallejo has many homes being built (all are on Mare Island) unless if I'm looking at the information wrong. 

So my question to you all, based on my situation would it be best to stay in Vallejo, find a broker to work with, and start investing here? Or..

Should I look at cities out of state and do what I have in mind out there?

I have been trying to figure this out for a while but being out of high school for a year already, no one that I know are even thinking about real estate as a career so I'm not going to ask them for advice. 

I don't know if my timeline is a little to fast and I'm not expecting to complete my goals within that time, I just want a basic outline and build on it once I get started. 

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y

You have a lot of questions so let me just focus on the most important: income.

About 87% of all real estate agents quit within five years because they don't make enough money. Attempting to start an investment career at the same time you are starting a career with a high likelihood of failure means there is a good chance you will fail at both. It's like trying to learn to juggle while simultaneously learning to ride a unicycle!

Build financial stability first before you start adding risk through investments. I think you should start by reading Set For Life by @Scott Trench.

The DIY Landlord Book4.7248 Reviews
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    You have a lot of questions so let me just focus on the most important: income.

    About 87% of all real estate agents quit within five years because they don't make enough money. Attempting to start an investment career at the same time you are starting a career with a high likelihood of failure means there is a good chance you will fail at both. It's like trying to learn to juggle while simultaneously learning to ride a unicycle!

    Build financial stability first before you start adding risk through investments. I think you should start by reading Set For Life by @Scott Trench.

    The DIY Landlord Book4.7248 Reviews
  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    I personally invest out of state because it gets me much more House for my dollar. You just have to be smart about it. In your case I’d say you can try being an agent for a couple years but be aware that it may be a grind. Personally, I know I’d likely never want to be an agent but for some people they love it.
  • Member since 2016 · 13k+ posts · 12k+ votes
    8y

    At this stage in your life, based on age and experience not is your golden opportunity to get out of CA. If you stay the likely hood is you will never reach your goals.

    Start looking outside CA for a place to live that will start your career path and be ideal to invest when you are financially ready.

    Getting "settled" in CA will likely kill your dreams. CA is full of dreamers, if you want to transition from a dreamer to a doer get out now while you are young, able, unattached and mobile..

  • Jo-Ann LapinPro Member
    Loan Officer · Tustin, CA · Member since 2015 · 3k+ posts · 713 votes
    8y

    Wow. Thanks for the share . Happy to network and assist 

  • Vallejo, CA · Member since 2017 · 50 posts · 9 votes
    8y

    @Nathan Gesner Thank you for your input! I'm not looking to make a career as an agent, I want to get to know the business so that in 2 years I can get my brokers license so I can employ people in the future. I have also read Set for Life already and have been building up my cushion already. But I'll continue at it so I would have less risk once I start.

    @Caleb Heimsoth & @Thomas S. Out of state sounds like a lot of fun. Caleb, as in smart do you mean knowing the demographics and psychographics of the area? Or as in smart when you run the numbers on a property?  I know I can definitely get way more than what I would get here in Cali. Yeah I agree, I'm going to have to hustle but I like the competitiveness. 

    Thomas, you're very correct. I still have the freedom and time to move to where I'd like to invest and research different areas and properties throughout the country. I'm just going to focus on building my nest egg before I start to make offers on properties

    @Jo-Ann Lapin Thank you!!

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y

    @Ivan Vargas I mean be smart based on your goals.  My goal is cash flow, so if I have a house that’s asking 150k and it rents for 1200 (assuming I’m financing), that could be hard to cash flow.  If I have a house that costs 35k and rents for 750 (and not in a war zone) that one will likely cash flow.

  • Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    8y
    I am investing in the area. This is a good area.
  • Vallejo, CA · Member since 2017 · 50 posts · 9 votes
    8y

    @Caleb Heimsoth That makes sense because so far the cash flow on the properties isn't looking too good, I would have to offer way less than what the seller is asking for to make the property cash flow. Even if Vallejo is the cheapest in the Bay Area, it's still quite expensive. There was an article saying that Amazon might come to the Vallejo area and if they do or don't come home prices and rents were to go up. But my niche is Buy & Hold for cash flow only. I'm not looking at appreciation. Either way I'm going to continue to keep an eye on my market while researching other markets

  • Vallejo, CA · Member since 2017 · 50 posts · 9 votes
    8y

    @David Song Really? Can you tell me from your experience why it's a good idea?  I just want to wrap my head around the whole idea to get a clear vision on it. Do you happen to know anyone who is a broker who also invests in real estate? I would love to contact them to see if they could use any assistance with their business.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y

    @Ivan Vargas well I do Cleveland and Memphis if you want to chat at all about those, just PM me.  

    You could also househack in your area but I agree traditional, “easy” 20-25 percent down and conventional financing would be tough in your area 

  • Real Estate Broker · Redwood City, CA · Member since 2014 · 679 posts · 888 votes
    8y

    @Ivan Vargas

    Vallejo area is a good area to invest, not necessarily in Vallejo, but the area around it.

    It has good location, but not very people there now. Just like Oakland and east bay in general.

    The demographics might change in the future. I bought a apartment in Fairfield 2 years ago. At that, there were about 4-5 apartments on market at any given time.

    Now, I did not find any in Fairfield.

    If you live there and know the area, you have an advantage. 

    I am a broker investor.

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