Hi all, I’m relatively new to REI- reading a number of books on strategies like wholesale flipping, lease options, straight options, etc. I’m in San Diego, an expensive market, and here in particular we’re on the downside of a bubble…
I have entrepreneurial experience (enough to know the planning, energy, discipline etc it takes), e-marketing experience, and work a regular job in ecommerce.
I’m learning REI and looking for the best low-risk way to start- I know some guru’s advocate just starting and not getting stuck in analysis, but I don’t think I’ve even learned enough to analyze! I also read that many new investors fail because they overpay, don’t do due diligence, etc.
I assume in a market like this, strategies that don’t involve holding the property a long time would be best- e.g. wholesale, straight options.
Any thoughts or advice?
Thanks!
Brian
I’m in the same boat being in a high priced market. I intend to start wholesaling to get some capital before I start my buy and hold strategy. Wholesaling is very low risk. In your contract all you have to do is put in a contingency, such as contingent on partners approval, to get you out if you mis appraised the property or need to get out for any other reason. Just try to do it quickly so that you are not dragging a seller along.
The best strategy in a high-priced, buyer’s market might be to MOVE! The next-best strategy might be to do something other than REI until your market recovers. Contrary to the guru nonsense, REI doesn’t work in every market at every time.
Wholesaling is a relatively low risk strategy, but who are you going to wholesale to in a high-priced, buyer’s market? Also, I would not include a contingency for an imaginary partner - more guru nonsense. It is far better to conduct your business honestly and with integrity.
Good Luck,
Mike
Re: moving, ya… maybe 
Is there a good place to find a list of which cities around the country are appreciating faster/fastest?