Can a beginner wholesaler start investing in San Diego

Question

I’m overwhelmed and feel like I can not compete in the San Diego market I was looking at price points for distressed vs rehab properties and it’s scary.I have no experience yet but am taking a course to help me get started. Should I invest off market or wholesale virtually? Or should I just go for it and try?

Kelsey Olson · Answer

@Ray Alsaigh hey Ray I’d love to connect

Andy Eakes · Answer

@Victor Enriquez I would familiarize yourself with the real estate market before you go full throttle, because there are some things to know about the San Diego "off market" market. San Diego is a red hot market right now when mostly every other major CA city is seeing people leaving. With that being said, many developers from LA and elsewhere are coming down to SD and buying up whole blocks at a time off market and doing major renos.  So they are your competition. They have the capital (in cash) ready to go right then and there, making their offers very attractive. And a lot of people go for it, especially if they are unable to put their property on the MLS.

So does that mean you can't wholesale in San Diego? Of course not, but you will want to be ready to go if and when a potential seller agrees to work with you. So network and build a list of buyers. Trust me, in San Diego, there are plenty of very wealthy people who want to invest in really good deals but don't have the time at all to hunt down properties and maximize all of the other benefits that off market investing offers. Go meet them at networking events, on Bigger Pockets, or just in your day to day life. You'd be surprised who comes into your life when your goal is helping others find and invest in great deals. Just start developing those relationships.

So good luck! The market is there for you. I will end with this. Unless I have met the wrong people, all of the local wholesalers I have met so far in San Diego have never brought me a deal that I felt was any better than something off the MLS. In fact, almost all of them were bad deals. If you can develop a reputation as someone who brings in high quality deals, you'll make a fortune.

Kenneth Donaghy · Answer

@Victor Enriquez If the course you are taking playbook is to only offer 70% of ARV without adjusting strategies for different markets, honestly you will have little success here in SD. We are in a competitive market, therefore one's knowledge and skills become more important. You will need knowledge and skills in any market, developing them is a marathon not a sprint.

Ray Alsaigh · Answer

@Victor Enriquez I'm actively wholesaling in San Diego and I can tell you that the market is more competitive now than ever. The reason I chose to wholesale here is because I'm also in the market to start investing locally myself and wholesaling is a stepping stone for me to learn the ins and outs of the San Diego market, make connections with local people in the industry while generating some income that will support my investments.

My biggest advice would be to not get stuck in the education phase. Whether you decide to wholesale virtually or locally, the most important thing is to actually start doing it. Don't go crazy with marketing dollars in the beginning because you will more than likely make mistakes, which is part of the learning process, so make sure you're not wasting too much money in the beginning. If you're wholesaling locally, try driving for dollars to get a sense of what's possible. Cold calling is also another great way to get in touch with potential sellers without spending a ton of money on marketing.

Best of luck my man!

Rickey Miller Jr · Answer

Hi Victor, San Francisco is more of an expensive market. I'm not sure what course or training you are doing, but I'd just recommend you to go virtual. It will be simpler for you and possibly more beneficial since your not competing with bigger competition that may or may not have bigger pockets than you. Not knowing your situation, but Virtual is practically the same thing as investing in your backyard. The only difference is you need to communicate with Realtors, (boots on the ground) clients, and title companies/attorneys. Outside of your area, if you are not afraid of communication then it's practically simple.

I know of one person that I believe is in a similar market. She had the same experience that you had with the area you are in. Her handles are "ThisMomFlips" all she does is virtual and may be a stepping stone to see how she started. Hopefully that helps. Also her name is Lauren Hardy.

Can a beginner wholesaler start investing in San Diego

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