My first month... What I've learned About Farms

Wholesaling is a funny thing. It's attractive to many newbies (like myself) because it seems easy to get into. Write some hand written notes to owners of homes that appear to be under-maintained, send them in the mail, and phone calls and opportunities. Well, not exactly. 

I chose wholesaling mainly because it's interesting to me. Of course, the thought of a $10,000 payday is attractive, too. But, over the last month I've spent at least one day of each week driving for dollars around various neighborhoods here in Orange County, and even ventured into Oceanside for a couple of hours one day last week. I've come to know areas that I had always assumed were low income and couldn't offer any opportunities. I've also encountered my own biases when quickly evaluating properties while driving, and have already recalibrated my strategy to reflect my observations and intuitions. I haven't even closed a single deal yet.

So far I've knocked on one door (that was open), offered on one FSBO (that's still up in the air), and received one call from a direct mail piece (of about 150, for which I have an appointment next week).

Merely driving through neighborhoods I wouldn't normally enter has really opened my eyes to the enormous amount of opportunity that exists, not only here in Orange County, but across all of Southern California. It's unfathomable how dense the housing is here.

While listening to a recent podcast, @Brandon Turner mentioned that anyone can find investment opportunities anywhere within a 2 hour radius from your home, anywhere in the country. And that couldn't be more true in Southern California. What's more, I can access literally millions of homes within two hours of my home by car. Now, I might not make another drive to Oceanside to drive for dollars, but I know if one of my mailers brings me a lead, driving less than an hour for an opportunity to make $10k surely seems worth it. 

I've also heard Brandon and @Joshua Dorkin on multiple podcasts advise investors try to begin investing within a space of one-square-mile, become an expert in that area and hammer it. Because competition in Southern California is so stiff, I don't believe I can possibly get enough traction if I simply stick within that guideline. Of course, this is my belief. Whether or not it's true is another story. Similarly, as with all investment guidance, each investor is left to his or her own devices. Fair enough. 

It's absolutely not my intention to point out an inconsistency in either of their investment philosophies. Investors should always do what they are comfortable doing, and perhaps my naivety has me expending my farm into the size of a small country. But I have goals to achieve, and a square mile just isn't enough to achieve them.