All Forum Posts by: Joseph M.

@John Patterson Yeah there just isn’t much distress. Unemployment is very low and there apparently more job openings than people to fill the jobs . Stock market has also been on a great run . Seem to be very few foreclosures at least that come up on the open market At some point things will change of course as nothing goes up and up forever.

@Sam Shueh Bruce Norris of the Norris Group , considered an expert on the California housing market has predicted we will see interest rates in the 2% range He mentioned it on this podcast episode https://www.realwealthnetwork.com/learn/interest-rates-predictions-bruce-norris/

@Frank Wolter It does seem a ton of California investors are buying in Cleveland . It would be interesting to see the data though if there is any in regards to how many are specifically buying from California . In regards to California exploding and nothing making sense just wondering what you mean about that specifically . During the last crash of course people were buying homes with the no doc liar loans but now people actually have to qualify . We also have a ton of people that want to and do own property here from out of state and internationally. Lebron owned a couple $20 mil mansions here even when he was playing for Cleveland There is a lot of big money investing here now especially in and around the downtown area . Just to give an idea this is one neighborhood , Koreatown where there are 52 large developments under construction. These are developments like towers over 30 stories high etc . There is a big shortage of housing still because there was little building during the crash years . https://la.curbed.com/maps/koreatown-map-development-construction-new-buildings Prices in any market can’t keep going up forever either though , but the thing is in the L.A area the most prime areas , like the areas by the beach Santa Monica and the westside didn’t really go down much , it was more that prices stalled or went down modestly. Many rented their homes instead of selling and were able to wait things out and there weren’t many foreclosures in these areas . It was similar in San Francisco too from what I’ve seen . But nearby in Oakland there were a ton of foreclosures , but now prices in that area have gone up 3 or 4x from the crash .

@Michael Newman I would think the pay for accountant would be hire than property manager but of course there is a pretty wide range . Are you talking about having your own property management company or working for a property management company ? I would say real estate sales is generally more lucrative than property management although of course it depends. I know many states require a real estate license to do property management anyways . Getting licensed varies by state but generally does not take much time or money .

I don’t believe most landlords are taking advantage of people . There are slumlords of course but I believe most landlords want to keep their property in decent shape and provide a safe and decent place for people to live . It’ll be interesting to see what happens with AI and Automation but people will always need a place to live just like they always have .

@James McCray Some people have done very well teaching . Look at Robert Kiyosaki with the Rich Dad books etc. He also has a seminar company too . I’m sure he’s made a lot more with his teaching /informational products than investing in real estate . i read his net worth is around $80 million . Much higher than the average real estate investor . BiggerPockets is a site for teaching real estate although most of the information is free there is revenue generated from memberships , books , advertising on podcast etc . BP was created as an anti guru site though .

Good article Mercury News today about Prop 10 .

----

Skelton: California’s housing is a mess — and Prop. 10 won’t help

Thrusting all the burden narrowly on developers and landlords will chase them off when they’re needed more than ever.

https://www.mercurynews.com/2018/10/09/skelton-cal...

@Ken Scarbrough I definitely saw that in the last crash demand for rentals seems to go up . Many people lost their home to foreclosure /short sales etc but still need to a place to live so they rented . Construction also halted in many markets .. so less supply . I think as long as your in a neighborhood where people have decent jobs and wages things should be ok . Should keep a decent amount of cash reserves to plan for the unexpected .

@Giovanni Luna Every investment has a risk of course , but It Is about takIng a calculated rIsk . I know you have been listening to many of the BP podcast which is great but would recommend you read some real estate investing books as well . As you know each episode has the guest mention their favorite real estate books . You can also check amazon and see which books are rated the best . Many libraries now allow you to borrow many ebooks or eaudiobooks for free so you can even often read/listen to books for free . As far as the hard money interest rates , those sound like they actually might be points . 3.5 -4 Points would be on the high end today but possible some lenders are charging that much . Points is an amount you are borrowing on top of the interest rate . So if you borrowed $100,000 at 3 points that would mean $3000 in addition you’d have the interest which is often over 8% per year on hard money as others have mentioned .

@Michael Biggs Regarding #3 people should live with family . If this was the case there would likely be a lot less need for welfare . Unfortunately there are a lot of “broken families “ , single parents , abusive family environments in America .