All Forum Posts by: Rochelle Duong

I usually don't post since I am still learning and don't have much to offer, but I was basically in the exact same situation as you, last year (28 years old, new to real estate, single no dependents, just moved back home with the family to save money, and didn't have much to invest.. I also live in LA as well and had to look out of state) so wanted to share how I got to the point to owning one property now - its not much, but my recent and similar experience may be insightful, we'll see.

Anyway, I've always had an interest in real estate, but two things always held me back: 1) There's so much to learn, it can be overwhelming 2) I was never dedicated to save enough

The second issue is my first piece of advice: Start saving. I read finance books since I was pretty young so this was not that big of a deal, but can be difficult for a lot of people. I wouldn't be able to offer better advice than books like Rich Dad, Poor Dad or Set for Life, so I will just say grab a personal finance book if you struggle with saving and just get it done. You can also spin this to a positive, having no cash now while you're still a newbie means you CANT make any dumb mistakes and will allow you to build your knowledge base while you build your financial base in parallel. 

Which brings us back to the first issue, knowledge, I had a slight leg up.

 My mom has been investing in real estate since shortly after the recent crash, so around 2009. She bought her first home with little knowledge and with really no prior desires to get into real estate. She was basically persuaded by her brother to get into it after he found success with his property. Since then, she has been putting aside her monthly profits and buying a new house every couple of years, solely off of the rental cash flow. Previously, she would just sit on those savings and let it grow (slowwwwly) in the bank. Now, 8-ish years later she owns 5 properties, bringing in steady income and is now best friends with her real estate agent. 

I guess this is where my story comes in, and my second piece of advise. 

Since she became so close with her real estate agent, she became family. When I moved back home to finally take saving and investing seriously, I gave my Mom's real estate agent a call. She already knew my situation of course and JUMPED right in and found me a list of properties immediately. She pulled ropes, walked me through the process, and even manages my property for free. Without her, I would probably still be reading articles about real estate, dreaming about getting started.

So, the second piece of advise is networking and mentorship. Find a good real estate agent, mentor, whoever it is that will help you get over the hump and motivate and give you the confidence to take that first step. It really is pretty daunting at first, but once the first door is open, things get easier. I was lucky to have a mentor in my mom and an industry connection through our real estate agent, but sites like BiggerPockets can be just as helpful, so you got a good start there.  

Lastly, and more specifically for your out of state question: Don't be afraid of this. As long as you have a good grasp on the neighborhood(s) you're looking at and, another point to my real estate agent, a solid property manager, out-of-state investments can be just as passive as one down the street (hyperbole I'm sure). My real estate agent offered to handle everything for me, but I wanted to gain the experience of actually being a landlord so I deal directly with my tenant with any issues and rent collection. So far, nothing has taken more than a 5 minute phone call or 10 text messages. 

Hope this helps. Writing this out made me realize how lucky I am to have my circle of knowledge and hope that you can find yours as well. 

Hi @Rochelle Duong,

Have you looked into some local meetup to go to? I believe there is one that is coming up in Santa Monica next week (need to double check). And some in Costa Mesa and Irvine in the next few weeks. Great way to meet people and get all your questions answered, or as much as possible. Feel free to reach out to me and I'll provide you some links.

@Rochelle Duong

Realtor.com came out with their 2018 Forecast for Top 100 Cities for growth and appreciation, rank 1-100. Lots of details, analysis, etc.

https://research.realtor.com/2018-national-housing...

Terry

Top 100 list below.

Top 100 Largest U.S. Metros Ranked by Forecasted 2018 Sales and Price Growth

Realtor.com’s model-based forecast uses data on the housing market and overall economy to estimate values for these variables for the year ahead. The forecast result is a projection for annual total sales increase (total 2018 existing-home sales vs. 2017) and annual median price increase (2018 median existing-home sales price vs. 2017).

My suggestion is to get a real estate license and then use it to gain access to property faster and look for deals. Being a Realtor doesn't carry a ton of credibility by itself, though it carries more than being an investor when you're starting out.

I have always wanted to be in real estate, but I had little cash when I started. Lol, in reality, I had none. I paid for my license and starting fees with a credit card. After my first deal, I paid off that credit card and still had money left over; lol, I was hooked. 

Being a Realtor is a side hustle for me and I help people when I don't have an active property I am working on. Active meaning one that I am flipping. And I do it to get out of the house.

Let me explain. I have learned to network a lot, don't think I am really good at it, yet stuff comes my way because I help people connect the dots. I look at a lot of homes for myself and a few buyers I always seem to find.  

In the course of that activity I find sellers that want to list with me and buyers that need help looking, so I help them and get paid for it. Is it my main focus? No. I have a W-2 job that I keep for insurance and other benes. 

Am I a high producer? No, but I am not in it for income as a job, I am in it to find deals. For many years I did nothing except learning. Once I got my license then I started investing too and it was a lot easier because I had the experience from helping other people.

Something to think about.

@Rochelle Duong that makes sense! I think before deciding if you should house hack you should consider if you want to move. If living with your family is comforting and you would rather not come home to an empty house every night then I think you should stay and continue to pay off your loans and save. 

At the same time, I think if you've started your career and are ready to move then taking advantage of cheap FHA loans makes sense to help you achieve both your investing and personal goals.

If you don't want to move then I think you should explore finding a partner either in CA or out of state who can go into a deal with you. To me, this would be a better fit if you're looking to make your first investment but not alter your current lifestyle.