Newbie Investor Situation & Questions – Southern California

[Matthew Runfola]

Hello Everyone,

I am obviously a novice here, but I am eager and understand it’s going to take time to get things moving forward in relation to my current circumstance. I am looking to hear some advice or general direction to go in regarding my criteria and focus. I really want to get into buy and hold, but open to hearing other strategies. Trying to figure out how to adapt a buy and hold strategy to my situation in relationship to my goals. As a result, I am going to list my situational variables to help with the possible advice/solutions here. I know I have some BIG challenges, but I am not going to let them stop me.

My Status and Reality Check:

Current Debt: $10k Credit Card (2008 to 2012 were some rough years for me). I am slowly but surely paying it off. I am very budget conscious and practice it with my funds. I have no student loan debt or car debt.

Credit Score: 735.

Home Owner Status: I am renter in Long Beach, CA. I am looking to maybe make my first primary resident purchase next year in 2019. I am veteran and qualify for a VA loan, but my soon to be fiancée is not open to house hacking or moving out-of-state.

Area I Live In Market Status: I reside in is Southern California (Orange County/Long Beach Area) – Surrounding possible counties for investment San Bernardino & Riverside.

Savings Status: Less than $2k, but slowly growing.

Job Status: Work Full Time (45 to 50 hours a week) in Non-Real Estate related industry.

Resources Status: Limited to Non-Existent. Unfortunately, I do not come from a family or friends of financial means. My current social situation I am wanting to change and surround myself with likeminded individuals doing what I want to do in regards to REI. Currently I don't know anyone doing real estate within this category, but I am strongly attempting to make efforts to change that.

Mentor Status: I have no mentors at the moment.

REI Education & Networking Status: Have read 6+ REI books in the past 3 months and attended my first local REI meeting in the past week.

Monthly Livable Income To Achieve: $3500 a month ( I have the long term goal in mind, but trying to figure out the short-term to bridge the gap between the two concepts)

Given I am a beginner with limited means then I at least want to learn to analyze deals, but that gives me the challenges as I will list my questions below to address that.

Questions:

Provided with these variables in my present state of affairs I have the following questions:

• 1. How or what value based on my current status could I bring to the REI community in relationship to help me grow?
• 2. If you were in my situation what are some markets or strategies I can consider to look at to analyze properties or deals in relation to my second question?
• 3. Given my financial resources and debt to savings ratio. How should I approach getting into real estate financially speaking since I don’t have the Bank of M&D (Mommy & Daddy) or a rich uncle nor a mere $20k laying around waiting to be put toward real estate investing. Should I just sit on the sidelines and wait until I find a long lost relative
  • a. I want to find the deals, but not sure what criteria (market, multi vs. SFR, etc.) to use and what happens when I find something, and don't have the financial resources to utilize to get started on them? Do I just go around and pitch until someone says yes?
• 4. I s buy and hold plausible with my situation in the areas I live in? Why or why not?

It’s been suggested I take a look at Multi-Family deals in around the San Bernardino/Riverside markets as a start to at least analyze deals, which sounds like it would be a good exercise for me to do. I am leery on out-of-state for my first deal, but maybe someone has a convincing counter-perspective. I am willing to give what time I can outside of my job, which are weekends and after normal work hours. Also I am willing to partner and put what limited amount of finances I have or can find. Thanks for any responses to this. Thank you.

-Matthew