Buying Out of Your Area

[House-Mouse]

Hello, my name is Mouse-House.  This is my first posting.  To stat, a little about me:

-I am a toal rookie.  
-I have never owned a home.  
-I have very little money and I don't make a lot from my job.  
-I have just a few thousand bucks in the bank.
-Brace yourself, I filed for chapter 7 bankruptcy a couple of months ago.  
-To make my situation even more difficult, I live in Silicon Valley, not exactly a cheap area.
-I'm 29 years old.

Although I just filed for bankruptcy, I had been fighting very hard to try and pay-off my credit cards  for years, until my car broke down.  That was the end of the line.  I had to get another car and file or stop showing-up to my low paying, yet steady job of 8 years.  I'm not bitchin' and complaing and I don't want your sympathy.  I just want want realistic answers to the question I'm about to ask.

Buying income propery in San Jose or even in California (because of the prices) seems like an unrealistic goal.  But, does anyone think a person in my situation could get into a situation to pull a positive cash flow from a property in say Texas or Arizona?  Does anyone think I'm dreamin' and think I should think of another way to make some bucks?  Go ahead.  Give it to me straight!  

[David Alexander]

I don't know your area....

But, you need to start there first....

There are always ways to exploit deals.... Where  you are....

The grass isnt greener elsewhere....

Once you get some experience... then venture out....

David Alexander

[Paula S.]

Mouse-House,

I do know you area. It is like my area, San Diego. People are buying fixers at full retail. Houses get bid up above asking. (I know San Jose is a bit different due to the dot com fall-out, but housing is still insane.) Sure there are people finding deals here, but they have the funds to advertise over long periods of time.

I spent money on mailings and got nothing to speak of. I have started looking outside of Calif. I bought a fixer in Illinios. Long story, but it will be sold shortly. For doing very little except providing funds, I will make a nice profit. It is very hard not being in the town where you want to invest. You need to have people you trust... a lot!

If I was single, I would consider moving to a town where I could work and study real estate. Most other places in the US are far easier to practice creative RE investing.

[David Alexander]

I disagree.... It's all just geography....

If you want to fund deals... Just let me know... there are definitely plenty here...
 


But, in Texas we have our problems as well...

Builders still building.... offering 100%
foreclosure rate high
Rents going down because the folks that can afford it ahve moved into new houses...
Lots of vacant property everywhere....
And the Taxes and insurance combined run about 3-4% a year...
Which can kill cashfow even with 7% and below loans on property....

But, if you understand what you are doing you can still make money....

And if folks are buying fixers at full retail.... I want to know where... I'll everything I got....  If houses are getting bid up past asking... I want to know where....

It ain't in the Dallas Area....  I just sat on a beautiful house for 15 months.....

And have had an average of 8 plus vacancies per month for over a year....

Enough to make a grown man cry...

David Alexander

[JBContractors111]

David Alexander..
Now your advertising for me. Like I have said the market is turning to new homes.
J.B.

[Paula S.]

David,

To what are you disagreeing?

I think you need to read my post again. I am referring to California. Have you purchased in California in the last year? If you have you would be agreeing with me.

Of course it is all geographic. That is why you can not apply your Texas real estate experience in California. I would love to be in Austin buying property. And I might take you up on buying property from you if you didn't seem so grumpy!  :D

I am serious about the property buying. If I can buy in Illinios, I can buy in Texas!

Paula S.

[David Alexander]

I've rarely been grumpy in my life.... Lol....

I actually did misread your post.... and thought it was from Mouse-House.... saying that they did know my area.....

If your ready to buy... Tell me Your poison..... And be to break out your check book....

I've got Notes, Rentals.... and plenty of deals happening....

David Alexander

[dgpioneer]

Mouse house,


Yes it is possible to invest in RE ANYWHERE and make money.

Like Peter Conti stated

"Put me in any city and in 3 days I will have control of $250K wort hof properties"


You need to get educated first and implement without giving up the techniques learned. Of course you need to know your market to read a good deal.




David Garcia

[House-Mouse]

Thanks guys.  

[sanjosee]

I do exactly what you are proposing to do. I buy RE in Texas, Arizona, and California. I do it full time.  What you are trying to do is very difficult with two things, time & money.  I am not trying to say it can't be done.  I am just saying that you will need to figure out how to manage your business from a distance with very limited financial means.  Why not consider moving to an area that is more affordable & ripe for investing.  Your chances for success with be much greater given your current situation.  Just my opinion.

Good Luck

[Wendy Patton]

Mouse House -
I think that you can buy for little or no money down anywhere in this country - including LA or SanDeigo, BUT, you also should consider the post above - if you are single - consider moving where you can get tied in and start with something less risky - ie Phoenix -great appreciation now, but lower end.....I think it is a great place to invest.   I have many students buying there with little or no money down and making huge profits.....you said your job wasn't that good anyway - MOVE!!!   If you don't want to or can't move then get involved with as much training up there as possible....anytime you can go to a conference or seminar - do it....do the less expensive ones first - the $99 or less for a day of training - NOT selling - training.     Read as much as you can about investing.....Peter and David give away their book on little or no money down - it is really a good book!  Take advantage of that.   I used to give it away as part of my course.    Good luck,

Wendy Patton

[paintmadman]

Hey San Josee,

Are you planning to bid in the Alameda or Lake County tax sales?

paintmadman in San Jose

[EZmoney]

Thank you David Alexander for sharing some truth about owning real estate. It is very Difficult (at times) buying 1-2 family properties and making money at it consistently. I, too, have had over 120 properties (1-2 families). You really have to understand your market place and the areas to stay away from.

 I think being in mortgage/finance for the past 25 yrs helps, but I think it is rare to be able to find good "small property" out-of-state and make a living at it.

To do that, we need a "network  partnership" across various states. I become aware of property all the time for in WI, IL, MI, but without a partnership with a local investor, I would not go out of my WI back yard.

We all can buy Property with no money down--the KEY is selling it for a profit--consistently.

ANYONE here from  WI??

[moke]

hi

have question for all the clever guys/girls on this forum?

how does one manage out of state ,etc

ive had mixed results and am ALWAYS interested inn new stuff.

ps i dont want the mang/comp to make me rich.

moke

[kbrandau]

Yes, you can purchase properties anywhere at anytime, for the right deal.  

I personally have not purchased out of state, I kind of stick with the markets that I'm most familiar with.

I do contract for deeds, with no money down, no closing costs, except for the $20.00 recording fee, other than that, I've purchased some of my rental properties at the lower than market rates in the beginning, looking at the days on market.

Killeen Texas was listed as the 2nd lowest housing costs in the US a couple years ago.  There's plenty of deals to be made there.

Good Luck!