Complete Newbie with 700k to invest... but in San Diego...?

[Irwin Dominguez]

Hello everyone,

Newbie here, but I'm serious to get started investing. I've read enough, watched enough Grant Cardone videos and I'm ready to invest.  I'm still educating myself but I'm committed to making an investment within the next few months (or if the right opportunity presents itself I'll invest sooner).  

I know for sure that I DON'T want to invest in SFR and I really want to invest in Multi-Family but Multi-Family in San Diego isn't cheap and 700k doesn't get me far here. I'm thinking of looking in other markets, like Utah since I know some people there that can help, but I keep hearing it's best to invest where you live.

Any advice on the best way to get started in an "expensive" market?

[Frank Wong]

Hi Irwin,

You probably shouldn't advertise you have $700k to invest.  Lots of scammers out there.  Alina makes a great point about being an active investor.  This is important to know if you are willing to put in the hours to continue to manage your own property even if you have a PM. 

Now if I had $700k and living in San Diego I would stay local and invest in my local market.  Its a great market with historically solid returns.  I would sit and wait and search for the right deal.  It doesn't have to be a big deal.  It could be a 2-4 unit.  I could put 50% down or pay cash.  Sit collect the rent and have low risk.  I don't know the exact prices in that market but with $700k I know I can create a few thousand dollars of free cash flow a month. 

I can tell you what I wouldn't do.  I wouldn't jump into a market that I have no idea about and invest $700k of my hard earned money.  I wouldn't chase rates because I read some article that this city is up and coming and growth is coming. I would research for at least a year and do several site visits before investing out of state.  

I would not put my $700k into a syndicator either. That is way too much money to trust someone else with.  Lots of great syndicators out there that are trustworthy and have solid returns.  You can put a small % of your investment dollars into it.  I just trust myself first.  No one will care more about your money than yourself.