Real Estate Investing In Washington, DC Or Southern California
Hello everyone!
I currently live in the DC area and graduated not too long ago. I want to get into investing, preferably starting out in wholesaling and eventually building up enough money to get in to rehabbing down the line. I don't have money right now and my credit is not very good since they don't teach you how to use credit cards in college. I haven't made the jump into the 9-5 world, I have been bartending and I've been helping run a tree company for the past year. I have been feeling pressure to use my degree to go and get a job. My first question is, would those of you that have been in this business for a while, would you recommend to a beginner to either go ahead and find a full-time job a get into investing part-time or would you recommend continue working part-time and devote the rest of my time to getting into this business?
I have also thought about relocating to the southern california area and I know the area out there right now is hot but is it too hot? Is there anyone from that area that can give me insight on the market? I'm considering buying either Steve Cook's or Scott Reister's courses on wholesaling. Any advice is greatly appreciated. Thanks!
You asked, so I will tell you. If you come out here do it because you like the weather or you get a good job. Don't come out here because the market is hot. The hot market has turned everyone out here into an investor. This is not a place to cut your teeth on investing. Check out the past posts from Southern Californians, many of us are looking at other states. Yes there is money to be made, and if it keeps going up you could make a killing on even the worst purchase. But when the music stops, you will be left with a very very expensive bag. I know that I couldn't have supported one of the mortgage payments out here when I graduated from college. On the bright side, you are getting into this early. Here is what I would do:
1) clean up your credit. It will save you money on interest in the future and open doors.
2) read all these forums, there is a wealth of information.
3) hook up with someone who does what you want to do and work for them (for free if need be, the education will be a bargain)
All of these things can be done without a penny out of your pocket. After working in and following REI for a while you will know if it works for you, if you enjoy it, and if it is what you want to do full time. If you jumped into it immediately, worried about 'missing the deal of a lifetime' you could very easily get in over your head which would be costly. And in Southern California it can be very costly. I sincerely doubt there are wholesale opportunities for you out here, unless you consider 125% FMV to be wholesale!
Just my opinion, but the property I plan to purchase this year I have to fly to.