Future investor in CA - Can I make this work?

[Brandon205]

Hi everyone,

Been on here more and more frequently so I figured it was time for me to register. My name is Brandon, I'm 26, Ive been working for 3 years and  while I dont hate my job, I really hate the idea of living this lifestyle for 40 years of my life.

So thats where REI comes in. Im looking for a bit of advise or confirmation that my plan for my first investment is not headed for disaster. My investing interests are rehabbing, flipping, landlording, and seller financing Single Family Homes but I live in Long Beach, CA so I am priced out of the local areas. Would it be best for me to try wholesaling locally or just going straight to flipping out of this area. I have saved enough money that I could pay cash in an area about 80 miles from me that I am pretty familiar with; grew up there and my parents still live there. I know I would have a difficult time scheduling to see houses and meeting with contractors as I would only be available on the weekends and every other Friday.

I figured if I went this direction I would start by finding a title company that works with investors. Then I can do some cheap advertisements, craigslist and bandit signs, hopefully I could find a place within 6 months. If I managed to find a place, it would probably take me a while to finish being my first deal and dealing with the distance but my holding costs should be quite low when I dont need any type of loan, I will just have to make sure I account for this.

One other issue, do you guys advertise with your personal phones? I was considering getting a prepaid phone to receive the calls but then I would have to carry two phones. With the limited advertising I was going to do is it even worth the trouble?

Brandon

[AJ290]

Brandon, you're making the usual mistakes that many new investors seem to make.
First, simplify matters by focusing on one strategy to start with.  If you try to know all things from day one, you'll end up confused and find yourself in the same place a year from now.
Second, if you have cash, do yourself a favor and stick it under your mattress and don't buy a house with it.  Not yet, anyway.  A new investor risking his money is always a recipe for disaster.  Instead, employ a safe, easy strategy to start with, preferably one that doesn't require your money.  How about doing a Cooperative Assignment or two to get your feet wet?  I firmly believe they are the best way for the n00b to get going.  Check out Carbonare's site over at The Naked Investor for some info.
Whatever path you decide to follow, best wishes! 

[Brandon205]

Yeah I do recognize that I need to aim for a single strategy. At this point I was planning more along the lines of just flipping. While I am interested in landlording I wasnt planning on getting in to that initially. I dont want to deal with a property management company and dont want the added headache if I have the opportunity to relocate. As for seller financing, I have a lot to learn if I was going to pursue this, but I dont want all my money tied up in a single deal for an extended period of time. I will look into Cooperative Assignment, I like the idea of getting some experience before investing my money, and I could probably do that locally so that would make things far more convenient.

Thanks for the advise.