Any one investing in California?

[realestatefox]

I am just wondering if there are any California REIs? Specifically, are there any investors in the Sacramento area?

FYI, the average ROI on properties in the US is about 4.5%, but in California is about 10%-25%. per year. While watching the news today some business analysts are predicting that the market is reaching a soft spot and sales will decline by 4% by year's end and because of interest rates going up. Last year was a peak year and like all good things what goes up must come down.

[Greenridge]

Located in San luis Obispo,  Been to many seminars. I own a few different programs and have found the "national real estate investors" to be the most informative. I purchased a home in Paso Robles, Ca in probate last year for 190,000 and was appraised one year later or 310,000.  I am still fairly new to REI but am studying daily and am willing to buy out of the area. Creatively definitely preferred. Words of wisdom greatly appreciated.

[SD Newbie]

Greetings fellow Californians... the SD stands for San Diego...

[cainvestor]

I am San Bernardino/LA border area, just find out about this site.

Try to get in l/o, mobile home, sub2, and apartment investment, creatively of course.  Please feel free drop me a note, any good info on deals and other useful stuff is greatly appreciated.  

Good Day,

[kimbella]

Hello . South Bay / Los angeles area .. new investor

[Garfield27]

Hello from San Fernando Valley.  

I began REI a year ago and I am loving it.  

[SD Newbie]

Hello from San Fernando Valley.  

I began REI a year ago and I am loving it.  

Garfield,
Share with us what you've done in your first year... It could serve as fuel for others that are new...

[SD Newbie]

Hello . South Bay / Los angeles area .. new investor

Kimbella,
have you made any offers as of yet?  What types of properties are you interested in?  What reading have you done and/or are doing to keep you "in the know" as it relates to REI?  How long have been in this industry?

[kimbella]

well, I am new to REI and I have been out to meet w/5 sellers so far in the past 2 weeks just to get the feel of talking w/them and negotiating , I have read books from peter & david and cd's from different REI seminars . I am getting familiar w/L2P , equity split , subjec to finance options . my main focus however is in foreclosures . I have joined my local REI club were I am able to network w/other investors and I also have been working w/ a HML that has been very helpful in getting me comps and profiles and advice on if the deal is a good one  , so far I have not found my first deal yet however I have a goal to do at least 2 deals by june and to be able to quite my job this year and do investing full time , as my ultimate goal is to retire in 10 yrs . I am very determined and have been doing alot of studying on different scenarios in which to use the different finance options to leverage myself into a property . I welcome all the contacts I can get in this business as you can never have too many .

[Garfield27]

SD,


I began researching real estate markets in December 2003.  Prior to that I was investing in stocks and options.  I have a full time Corporate Finance job and have a degree in Finance, so real estate investing comes very natural and interesting to me.

When I started I looked into Las Vegas, but instead decided on Fontana, CA.  It seemed to me that the growth would be similar in both places, but Fontana home would be easier(closer) to manage and rental market is a lot better than Vegas.  With this purchase I was chasing appreciation and the fact that Fontana was being developed translated into some assurances that appreciation will come in a couple of years.  I honestly did not expect to see such a quick appreciation.

Last summer I began searching for a second property.  By that time prices in Fontana grew quiet a bit, so on the next purchase I wouldn't be able to cover mortgage.  I decided to go elsewhere.  I felt that I kind of missed the boat on Vegas so I went to the next best place.  That was Phoenix, AZ.  I purchased a practicaly brand new home in a nice community slightly above building cost.  It took 4 months to rent it out, but some of it was due to my own fault and some of it was due to lack of effort by the property manager.  I breakeven on both properties, but both appreciated quiet a bit.    

Fontana - paid 265K, now 340K
Phoenix - paid 165K, now 210K

A month ago I decided I was ready for the next purchase.  This time I am chasing cash flow instead of fast appreciation.  I spent the last weekend in Dallas, TX.  Made offers on a couple of condos and currently in escrow.  We'll see how it turns out.

A couple of simple advises that I can give you are to read a lot(books and articles), visit message boards like this one and try to get other people to invest with you.  I have a few people whose money I am investing along with mine.    

I went to my first REI club meeting.  The information was good and networking part was great.  My only disappointment was that I expected to see a lot of repeat members instead everyone I met was there for the first time.  I think other clubs could be better.  

If you attended any good REI clubs in Los angeles, please let me know.

Hope this helps.

[rdavis]

Are the condos new that you purchased?  Can you share with me the price that you paid for them?  I am interested in investing in Texas also.

[Garfield27]

The condos are not new.  They were built in early 80s.
Prices ranged from $33k to $48K.

You can see all of them on Realtor.com or any other MLS system.

[kempertim]

Hello from Chico Ca.

[SD Newbie]

Hello from Chico Ca.

How are the prices in Chico?  What are vacancy rates like out there?

[grommitt]

Hello from Orange County California.  New investor.  Don't think I can afford So Cal investments.  Seems challenging to break even on rent even in the Inland Valley now.  Where are most people looking in So Cal, and can you break even on an investment long enough to reap the appreciation?