Need some guidance - Invest in California or Out of State?

congratulations for getting back into rei; Im also in the Bay Area, and I know what you mean about properties not cash flowing here!
If you follow Dean's lessons, you will learn how to build your team anywhere you decide to. Once you have your team in place you can invest wherever you want to.

You don't have to buy and hold in the Bay Area at first, maybe you can start by assigning properties...

Wishing you great success,

Valerie

Hi Belle:
Great that you are back on this site - lots of great info here. I am in Merced-Mariposa area - you can get houses or multiunits in some central valley towns for much cheaper than where you are. Let me know if you are interested in this area. I agree with Valerie that you can invest anywhere in or out of state, you just need a team and to really check out who you are working with. There are many folks on this website looking for partners.

Go for it,

Judi

Hi Valerie,

Thank you for the response, I really appreciate it. You suggested that I can start by assigning properties in the Bay Area. It's a great idea; however, prices are still pretty high and there aren't a flood of foreclosed properties. Since you live in the Bay Area, I was wondering if you had done any assignments in the Bay Area? Have you been able to tie up properties at 30% - 40% below market value?

Belle

Hi Judi,

Thank you for your response, I really appreciate it. Wow, my husband and I were just doing some research on Merced, we were thinking of investing in Merced. I noticed that prices are cheaper in Merced compare to the Bay Area; however, rents are pretty low. I ran some numbers and it appears that most of the properties do not cash flow. May be I am missing something. Have you done any investing in Merced? It would be great if you could provide me with some insight. Thanks a bunch!

Belle

that's the whole point about learning DG's strategies; I haven't done any assignments yet; but I'm working on it... trying to go out of my comfort zone. I've also been to Merced, Atwater, and Winton... some good income properties there; and yes, you can get good deals with positive cash flow if you look for them.

Learning and progressing every day,

Valerie

Great, thank you! Good luck with your investing and I'll keep you posted with my progress.

Belle

Congrats Belle for getting back in it. I know how you feel when you say you're afraid of going outside California, I too am in the same boat of widening my investing area. You know what though I think it will be so much easier after that first "outside of the area" deal. I do have a cash flowing property in California and have done one flip, but I feel that investing in other states like the mid west seems as if it would go much faster. Cheaper and real estate laws aren't as strict. Though California is a great area to flip properties I think there are also opportunities of cash flowing properties. Maybe not in the Bay Area (so expensive there) but other cities for sure. I am looking into Nevada as my outside area atleast Im only about 4 hours from there. Are you still in the mortgage industry if so do you know anyone doing no seasoning refi's in California? Oh yeah I need to purchase RBBP before it ends. Good Luck and see you at the top! BTW you pinay?

Ron

Hi Ron,

Thank you for your response, you brought up some great points regarding investing outside of California. Unfortunately, I haven't practiced mortgage brokering for over 5 years now, so I really don't know which lenders provide no seasoning refi's in California. However, you can try this website called Scotsman Guide,the website has tons of lenders for both residential and commercial loans. Here is the link: http://scotsmanguide.com/. Hopefully, you'll be able to find what you need. Also, you asked me in your last email if I "pinay". I am not sure what this means, sorry. Take care and good luck with your investing. See you at the top!

Belle

"I did some research and found that most of the properties in California do not cash flow"

Cash flow is a result of creative terms, not price.

Belle,

if you want to invest out of state, you need to build your team there first; once you have your team in place, it will be a breeze... well, almost like a breeze

you still have to do your due dilligence, etc...

wishing you success,
Valerie