Hi - Sharing an interesting article on Real Estate buying in Arcadia, CA. It's about 18 miles east of downtown Los Angeles. http://www.businessweek.com/articles/2014-10-15/ch...

Think about it. Put yourself in the shoes of someone who has just made a bunch of money, whether you're living in China, or Russia, or Brazil or even India. Changes in government, politics, economy can all have an impact on your wealth. The stock market is too volatile. The there are not too many liquid investments in China and the rules are continually changing. More importantly, many of these investments require constant monitoring (this is hard work). Many wealthy people need a place to park cash where it will be relatively safe. Real Estate has that quality. In excellent neighbourhoods, values are retained over the long term, and the US has historically been one of the most stable places to invest in. So all of this makes sense. In Canada, we're seeing the same effect in Toronto and Vancouver, and to a lesser extent in Calgary. Chinese investors want a place to park cash where it will be safe. Many are buying second homes and condos. They're almost always being purchased in cash with no financing. This past year, China replaced Canada as the #1 group of foreign real estate investors in US Real Estate. In 2012, Canada spent 18.5B on US Real Estate and China spent $16B. In the past 12 months, China has spent $22B, and Canada only $14B. The UK, and Brazil are in third and fourth place. So if you're a real estate professional, that's a significant market. You can make a very healthy living specializing on one segment of foreign buyers.

There is definitely Chinese money flowing into the San Francisco Bay Area. Nothing to the apparent concentration in Arcadia, but especially near university centers we see lots of all cash buyers. As expensive as California is, it's still very cheap compared to Beijing, Shanghai and major cities. This is a great opportunity for a Mandarin speaking broker or developer to bridge a cultural gap and create a lot of value.

Bloomberg is always the last to know: https://www.youtube.com/watch?v=3n3HQ9uge0g

It is another "basket" for them. They get to invest in US economy and hedge themselves against their economy. The government is also much more relax and do not seize houses. California in particular the coast has seen huge inflation values. So they get a great place to come visit, parking their money in a safe investor friendly government and get the opportunity to take advantage of the growth if it continues :)

I think they're all just moving in so they can be close to Santa Anita :-D :-D

Understanding the market is important, as well as figuring the buyer's "why". The other side of the coin is that we can just accept and rehab to what the new money in town dictates and create a short-term business model around this phenomenon. Things are cyclical with different countries hitting the market at different times. Study the markets and build the business around these cycles. Right now it is Chinese money; many years ago it was mid-East money (anyone remember the 70's?). Keep on top of which markets are producing the best yields for buyers and create the homes for that market.

@Paul Ortiz You are ON THE MONEY!!! ;-)

OMG, I was about to post this, Then I saw it was already covered. HAHA

Bloomberg - Why Are Chinese Millionaires Buying Mansions in an L.A. (Los Angeles) Suburb?Bloomberg - Why Are Chinese Millionaires Buying Mansions in an L.A. (Los Angeles) Suburb?

Back

Resources & Media

Resource Hub Bookstore Blog Guides Pro-Exclusives PRO Podcasts Pro Partnerships

Events & Training

BPCON2026 Webinars Upcoming Events Free Courses

Strategies

How to Manage Your Rental Property How to Operate a Short-Term Rental How to Passively Invest in Real Estate How to House Hack How Does the BRRRR Method Work How to Flip a House How to Invest in Commercial Real Estate How to Invest in Real Estate How to Invest in Multifamily Real Estate How to Build Wealth

Invest More Confidently

Join the real estate investing community that’s helped thousands of people achieve financial freedom.

Start Free Trial

The Podcast Investors Trust

No fluff. Just deals, strategies, and lessons from the front lines of today's market.

Listen Now

Back

Pick Markets

Market Finder PRO Picking a Market Workshop PRO Picking a Market Worksheet Top 100 Cash Flow Markets Market Insights - Sunbelt Region

Market finder

Pinpoint the best real estate market for your specific goals with expert recommendations and real-time data on appreciation, affordability, rent-to-price ratio, and more.

Pick Markets

Pro membership

Get unlimited access to tools and resources that make it easier to find, analyze, and manage deals with confidence!

Upgrade to Pro

Back

Find Deals

BiggerDeals Off-Market Deal finding PRO Real Estate Syndications Investor-Friendly Agents Find Foreclosures Community Listings (FSBO) Business Directory

NEW! Find Cash-Flowing Deals Fast

Search nationwide listings with built-in cash flow analysis.

Find Deals

Invelo - off market deals

Scale your portfolio with off-market deals.

Explore Now

Back

Calculators

Rental Property Calculator PRO Rehab Estimator PRO Rent Estimator PRO BRRRR PRO Fix & Flip PRO Short-Term Rental PRO Sell vs. Keep PRO Landlord Insurance Calculator by Steadily All Calculators

Rental property calculator

Is it a good deal? Run your numbers like a pro with this simple yet powerful calculator.

Run the Numbers

Rent estimator

Understand how much rental income you can expect based on recent reports and data for your specific property.

Run Report

Back

Manage Properties

Managing Properties 101 Find a Property Manager RentRedi Property Management Software PRO Baselane Automated Bookkeeping & Banking PRO Property Management Tools Ask a Management Question Finding Tenants Screening Tenants PRO Leases + Landlord Forms PRO Property Insurance Property Maintenance / Rehab PRO

Property management software

Manage tenants, tasks, and your entire portfolio with one simple tool.

Activate Now

Property manager finder

Find reliable property management partnerships that last.

Find a Property Manager

Back

Plans & Pricing

Pro Membership Business Membership

Try PRO for 7 days completly free

Avoid mistakes and make informed decisions with Pro.

Start Free Trial

Grow your business

Promote your business on BiggerPockets and make quality connections with the right investors.

Sign Up Now

Back

For You

Newest Unanswered My Discussions Followed Discussions Followed Categories Followed Locations Followed People

General Real Estate

General Real Estate Investing Starting Out Deal Analysis Buying & Selling Business & Marketing Landlording Property Management Reviews & Feedback

Real Estate Strategies

House Hacking BRRRR Short-Term Rentals Mid-Term Rentals Multi-Family Fix & Flip Other Strategies

Finance & Financing

Lending Creative Finance Personal Finance Taxes & Legal Issues

News & Announcements

Official Site Announcements Market Trends & Data Real Estate News & Current Events Pro Exclusive Area PRO

Events & Networking

Events & Meetups Classifieds

Back

All Books

Best Sellers Browse All New Books & Pre-Orders Bundle & Save Books for Beginners

Unlock hidden potential in every property and maximize returns

This is your creative breakthrough guide to escaping investment paralysis and unlocking hidden profit in any market.

Get Your Copy

Build a Cash-Flowing Glamping Business with High Equity Upside

Whether you're starting from scratch or expanding existing hospitality operations, learn the practical frameworks needed to capitalize on the growing demand for upscale outdoor experiences.

Learn More

Bloomberg - Why Are Chinese Millionaires Buying Mansions in an L.A. (Los Angeles) Suburb?

Most Popular Reply