All Forum Posts by: Joseph M.

Meant to say how did you fund your other properties.

Robert Howard congrats on getting them under contract. What was your plan to fund them ? How much below market are these ? How did you find your other properties ? Are you planning to hold these as rentals or flip them ? Have you spoken to any hard money lenders?

60-80k out of pocket and netting doesn't sound too bad if they aren't taking too long. How long are the deals taking from when you buy the property to the sale date? 

What city are your flips located in?

Caleb Rogers ,, I’m not too far from you as I’m in the San Fernando Valley . I think Jim’s suggestion is good. There are a lot of advantages to owning your own home . Although appreciation isn’t guaranteed , long term SoCal real estate has gone well . I’d find something with equity though , which is tough to do in this market but not impossible .. I bought a fixer REO in the SFV during the housing crash and while it wasn’t pretty or the best area I’m definitely glad I went that route instead of just renting . Also I have looked in that area and around and know that there aren’t really multis there or Thousand Oaks Area . I think you have to go city of Ventura for that maybe . They aren’t many in my part of the valley either and everything is priced more for someone planning to redevelop the property instead of as a rental. $300,000 Per unit or more on a run down rent controlled duplex paying like $900 rent a unit. Best of luck

I read this article the other day which was interesting but not surprising. 

Younger Americans aka Millennials are less likely to invest in stocks these days versus the past. 

"According to the poll, 52 percent of adults under 35 say they owned stocks in the seven years leading up to the crash. By 2017 and 2018, only 37 percent did. By contrast, an average of 66 percent of Americans over 35 invested before the crash, and though the share is lower now it's still at 61 percent."

Also they ranked real estate as their #1 long term investment option

"Real estate ranked highest, with 32 percent of respondents ranking it as their top choice."

Of course the article (it is CNBC after all..) then goes on to push the pro Wall street ..anti real estate agenda....

It's funny because there are many millennials that have done really well with real estate , yet I don't hear many that have been able to achieve financial independence investing in stocks. These articles never take leverage into account..how many people really buy investment real estate for cash and never refinance ? If you view real estate with the stock mindset of paying all cash it's not as attractive , but hardly anyone does that. 

"That's a common misconception: Returns on the residential housing market are "not making anybody rich," says certified financial planner Eric Roberge. "You're barely keeping up with inflation, not to mention all of the costs that go along with owning a home."

Astudy from London Business School and Credit Suisse finds that, after adjusting for inflation, housing offered returns around 1.3 percent per year from 1900 to 2011. The average annualized total return for the S&P 500 index over the past 90 years, meanwhile, is 9.8 percent."

https://www.cnbc.com/2018/05/16/gallup-why-younger-americans-arent-investing-in-the-stock-market.html

I found the article he wrote on the Forbes site, link here

https://www.forbes.com/sites/lawrenceyun/2018/06/0...

This definately seems to be what is going on in the L.A area and the SF bay area but all real estate is local. I'm wondering which markets he studied. When I look at places on the market out of state it seems a lot is on the market for months. 

There was basically no building going on in L.A during the housing crash , now there has been quite a bit the past several years but still not enough to meet demand. Also much of this new building seems to be apartments rather than condos or townhomes. I don't know the percentage but it definately seem the marjority is apartments. I suppose it's less risky and easier to build apartments. Developments can take years here so having a condo project finish up during a downturn could be a big risk. 

In CA they are talking about removing red tape to build and getting rid of environmental regulations in order to build more but we will see. 

Both candidates for Governor of CA say they want to build a lot more housing than is currently being built..but we all know about political promises. In terms of affordable housing, I don't see there ever being enough of it to house every single person that can't pay market rate....it's going to be like a lotto just like it is now. Maybe 1 out of 100 applicants will win the affordable unit. Promising affordable housing for all I'm sure wins politicians votes though.

Gavin Newsom stance:

On housing: Build, build, build. Newsom touts a goal of building 3.5 million new homes in California by the year 2025 to address the affordability crisis. Newsom also supports the Gov. Brown-backed $4 billion bond for affordable housing projects on the November ballot. He’s also talked about the need to tackle the housing problem through regulatory reform and carrot-and-stick incentives for neighborhoods to produce more housing.

John Cox stance:

We need to get rid of burdensome regulations on home builders, Cox says. He wants to do away with the California Environmental Quality Act (CEQA), which requires developers to get projects assessed for their environmental impact. “It’s all a honeypot for trial lawyers to sue,” he said at a San Diego forum in March. He says he’d replace CEQA with reforms that will streamline the process of approving construction, and, if elected, he’d work to build 350,000 homes a year

Link: https://www.scpr.org/news/2018/06/06/83773/gavin-n...

What i've been reading regarding millennials is that they are starting to buy homes at pretty high rates. 'They are actually leading all other generations in regards to home buying according to NAR.

Link: https://www.housingwire.com/articles/42748-millenn...

The Great Recession set millennials back as it did many other age groups. I think it is true that younger millennials might not want to buy because they might want to try living in other cities and go where the opportunities are but once people get married and have kids they generally seem to want to settle in an area. 

Originally posted by @Stephen Masek:

Originally posted by @Roxie Kim:

 Jamison is a good client of my company, and it is fun to see the success they are enjoying.  That will stop if they kill Prop. 13 for commercial real estate.   

 Been hearing a lot about the big developments they have going on in L.A lately. Sounds like they started focused more in office buildings and have been moving into residential , makes a lot of sense with the housing shortage in L.A 

Aaron Hollingshead Is flipping your full time income or do you do it on the side ? Did you do all the work yourself ? How much did you put into the deal? If for example it took 4 months and flipping is your full time gig that isn’t great because it means a profit of about $15,000 a year If it took two months and you have other income sources and didn’t end up spending much money on it and only put up a small amount of money then I’d say not too bad . I’m sure it was a good learning experience for you though and at least you didn’t lose money

@Terry Lao Yeah definitely. The wealthy often own multiple homes. I was reading how Taylor Swift is building a higher wall on her $25 million BH mansion because a homeless guy trespassed onto her property... but she also owns expensive property in NYC and elsewhere. Of course there are a ton of rich people that aren't household names that own a lot of property too. 

Regarding illegal immigration , this L.A Times article from last year states there are 1 million living in L.A and O.C . But that is true it's not often talked about in regards to housing. 

http://www.latimes.com/local/lanow/la-me-illegal-immigration-los-angeles-20170208-story.html