Newbie from Fontana, California

[Daniel Kim]

Hello BP!

My name is Daniel and I am a new investor from Fontana, California. I found out about BP through the BP Podcast. Currently, I work for a general contractor, but I'm actively looking to get into real estate investing.

At this time, I am interested in getting into wholesaling, wholetailing, and flipping. I am not interested in rentals/cash flow properties at the moment as I'm looking to build up my cash reserves. 

Also, I am interested in direct seller leads rather than MLS leads, due to the competitive prices in Southern California. I have door knocked over 100 houses and mailed out over 800 letters but still haven't produced any results, but that's OK! I am determined to achieve my dream of being a successful real estate investor and getting that first deal soon.

If you have any tips, articles, or advice on how I can find direct seller leads, whether that through direct mail, door knocking, cold calling, learning how to talk to motivated sellers, etc (or if you'd simply like to say 'Hi'), please let me know in the comments below!

Thank you for reading my intro and I'm looking forward to connecting with more people in this BP network!

[Logan Allec]

Daniel Kim

Welcome. SoCal can be a tough nut to crack for us newbies.

A couple years ago I mailed out lots of letters to homeowners in LA County with no luck.

Then I tried rural Kern County and got a deal from a distressed homeowner in California City.

The margins were not as large as they would've been in LA or OC, but I was able to rent it out for 2 years before fixing it up and selling it for a decent gain.

Have you considered an owner-occupied small multifamily for your first deal?

You only need to put 3.5% down, so cashwise it won't get in the way of your flipping, wholetailing, and wholesaling goals.

My first deal was a 4-unit up I bought with FHA 3.5% down here in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity so it definitely didn't compromise my cash reserves.

Good luck!