New to Investing in the Southern California Area

[Andrew Williamson]

Hi!

I moved to Southern California about a year ago. I am currently in the process of getting my real estate license here and looking into getting into investing in real estate as well. 

Just a little about me. I was a Realtor in Illinois about an hour and a half outside of Chicago. I worked for Re/Max at the age of 21. I'm currently 24 and wanting to break into the California market. My ultimate goal is to transition from being a real estate agent to a full time real estate investor within the next 10 years. I am an extremely ambitious and motivated person. 

I'm new to investing in real estate, so I would love any tips!

[Logan Allec]

Welcome, @Andrew Williamson

SoCal can be a tough nut to crack for newbies.

A couple years ago I mailed out lots of letters to homeowners across 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.

Also, 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 other real estate goals you may have.

My first deal was a 4-unit up I bought withFHA3.5% in Santa Clarita.

I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity. It was a great investment (and still is).

Good luck!