Where should I start as a new investor?

Question

I am looking for some real guidance as to WHERE I should start in REI.  I am currently a renter living in Burbank, CA, but would like to start making investments.

Jon Schwartz · Answer

Beth,

The answer to this question really depends on where you live. Like was a lot of other advice, what you read on BP will apply broadly to most areas in the US, but not to the LA area!

Socal has incredibly high rents. The cost of housing here is many times higher than in other parts of the country. For that reason, the best thing you can do for your own pocket book and investing career is get your housing costs under control.

I would definitely consider buying in LA. A great first investment would be a condo in need of renovation, a larger condo if you've amenable to roommates, or a duplex if you don't want roommates. Get your local living expenses under control, start your portfolio with a appreciating asset in a major city, and then expand from there.

All the best,

Jon

Catherine Emert · Answer

Best thing I can say is research where you want to invest and then do a bunch of research and have your formulas ready and move quickly when you find something.

Peter Ramirez · Answer

Hi Beth - Happy to share the hottest LA County zip codes with you!

Loli Gomez · Answer

Hi Beth,

I agree with Catherine, do your research where you would like to invest or live in depending on the method you plan on using. Find someone to help you make it happen and act on it. If you ever have any questions I am a commercial agent in the Los Angeles & Orange County region- I'd be happy to help.

Nate Sanow · Answer

@Beth Meurer

If you can, buy a home to live in, either to rent when you move out, to slowly flip, or to house hack. The experience is invaluable.

If you can’t, consider getting a job or side hustle with a lender, a title company, a brokerage, or even an investor. Many investors need bird dogs aka acquisitions people.

Jaquetta T Ragland · Answer

@Beth Meurer I would start by networking/making connections with lenders, realtors and educating yourself.

Nicholas L. · Answer

@Beth Meurer save up some cash.

Leslie Pappas · Answer

Hi @Beth Meurer, as a real estate broker, I would take the money to a different market. There plenty of other opportunities elsewhere, my clients are involved in institutional grade properties across the country. My recommendation is to choose cities in safe and economically diversified areas with above-average income and population growth. It can also be safer to diversify your investment properties across the country. There is still good money to be made in AZ, FL, GA, TX and other states, however, picking the right submarkets is key.

A very good source of local analysis is rereport.com

Jeff D. · Answer

One of the best wisdom I heard is to invest in your knowledge enough that you know a good deal when you see it.  IT took me decades of buying houses, and a lot of reading to finally 'get it' and know, with little doubt what is a good deal and what isn't. And that only applies to my local region!  Put me in another city and it doesn't apply.   Hope that helps a bit.  -Jeff

Beth Meurer · Answer

Thanks you all for your suggestions.  I have heard it's best to rent where you live, and buy what you rent.  Would you agree?

Where should I start as a new investor?

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