All Forum Posts by: Joseph M.

Jay Hinrichs I meant to say “Silicon Beach” in L.A , people have been using that name to refer to these neighborhoods because of all the tech companies that have offices there now . I notice that some real estate offices will now use that name in their name like , Keller Williams - Silicon Beach . A branding thing I guess . Google , Facebook and some of the other Bay Area tech companies have opened offices in that area too . As well as local companies like Snapchat starting there . It’s kind of funny though since many of those neighborhoods were just considered kind of regular middle class neighborhoods and not a big deal to live there but now they are like $1.5 million and up . I guess similar to the Bay Area . Sounds like the talk was really interesting . Is it available anywhere online for viewing ?

Jay Hinrichs That’s cool you did a talk at Google about real estate . You mentioned it wasn’t about rentals , was it more about investing in syndication type deals or note investing ? I have heard the food there is amazing , they hire gourmet chefs I heard . Speaking of the techies buying the $2 million dollar homes , i had read this article recently about how many of them are using their stock options to buy in the “silicon beach area “ They make high salaries but it seems many wouldn’t be able to buy such expensive homes without the stock options . — “In one recent case, an employee of a dating app company was able to qualify for a $1.4 million home in Silicon Beach this year on a base salary of $120,000. Originally, his salary was only enough for him to buy a $750,000 home.” https://therealdeal.com/la/2018/06/06/for-silicon-beach-homebuyers-a-salarys-just-a-starting-point/

David Song , I recently saw that Sacramento is the #3 city millennials are moving supposedly . It makes sense especially for those that have a family . Looks like you can get 3 bed house for around $300k or so . Unemployment rate there is 3.9 percent now not like 2009-2012 when it was like 10-13 percent . Lot’s of government jobs that pay decent with good benefits . — Millennials are flocking to California's state capital, a new study found. Sacramento was the third most popular destination for those ages 20 to 34 in 2016, behind Seattle and Columbia, the capital of South Carolina, according to analysis of U.S. Census data by investment site SmartAsset. https://www.sfgate.com/expensive-san-francisco/article/sacramento-housing-millennials-moving-migration-12973230.php

Alex Silang meaningful means different things to different people . Sounds like you are burned out in your current job maybe there is a way you can use your experience and skills for a different position that is more rewarding for you than your current job? Maybe working for a real estate related company instead of banking ?

It’s funny there are people in other states complaining about Californians and /or New Yorkers moving in and making housing prices go up . But here in SoCal locals compete for housing with people from New York , ‘Midwest , the rest of the country and then the very wealthy from China and the rest of the world . They are both living here and investing here . Good if someone bought a home years ago and looking to cash out but not for those looking to purchase . Same thing in the Bay Area . Median home price in San Francisco is $1.6 million . Double the price 5 years ago . Only 12 percent of SF households can afford to buy a home there . The surrounding areas are also very expensive too .

Sam Josh , no doubt there are a lot of people making big incomes in the Bay Area but they are still a small percentage. The same in L.A there are some making a lot in the film industry and increasingly tech too but they are a minority of the population. Of course a lot of high paid lawyers , business owners too . California used to make more financial sense for middle class people . Both my grandparents were teachers and they lived in a part of L.A that is now an exclusive area , homes now sell for $2-3 million and up. My grandma sold at the worst time , during the crash .. but that’s another story . There are many other parts of the city where it was lower middle class /middle class living there but it wasn’t a big deal to live there but now some of those neighborhoods are called “Silicon Beach” tech isn’t the only reason prices are high but it’s definitely helped . I read recently that many of these young techies have high incomes but a good amount are borrowing against their stock options , otherwise they wouldn’t be able to afford these homes either . There is a lot of talk and promises of affordable housing and while more might be built it’ll still be like a lotto to get it . Politicians use the promise of affordable housing to keep people voting for them . Best and quickest option for those priced out is to move .

Looks like he’s a Louis Farrakhan / Nation of Islam fan . He says NOI doesn’t promote hate ? Really ? https://www.instagram.com/p/BQJxF6PDUG9/?hl=en One recent quote from Feb 2018 “"White folks are going down. And Satan is going down. And Farrakhan, by God's grace, has pulled the cover off of that Satanic Jew and I'm here to say your time is up, your world is through," he later said.” https://www.cnn.com/2018/02/28/politics/louis-farrakhan-speech/index.html

Karen Margrave It sounds like you made the right choice for you and your business . I don’t like the policies that are being proposed and enacted at the state and local levels either . They mostly seem to come from a place of ignorance . They seem to be from the group of people one of my old teachers called , “Those that are well intentioned , but ill enforced” .. Much of the policy is based on emotion versus math or reality . Unions have a lot of political influence too . Jerry Brown was against the $15 hour minimum wage but then passed it because of union pressure . That is definitely not a law that is good for businesses especially small business that can’t afford automation technology . If someone owns a home that is paid off or a tiny mortgage and enough to pay living expenses they have little incentive to move especially with Prop 13 keeping their taxes low . Unless they just want a change of scenery.

Hi Gabriel Rodriguez , welcome to BP. Out of state is definitely possible but I believe you should be able to good returns in NY. Not sure what part of NY you are in but I have purchased properties in the Buffalo area for low prices it’s been some years but the area in general is still pretty low priced . Buffalo seems to come up on those lists of “where millennials are moving “ these days . Rochester might be another one to look into . I’d be looking for areas that are gentrifying or have a good potential . High property taxes are one thing I remember about the area but you have that in Midwest cities as well . Need to run the numbers . Some interesting articles . It’s funny years ago I never imagined they’d be talking about gentrification in Buffalo . The same thing in parts of L.A too that used to be “gang areas “ but now hipsters are getting into bidding wars over properties . https://www.nbcnewyork.com/news/local/Realtor-Hot-Spot-NYC-Realtor-Yelp-NYC-Rochester-Buffalo-450315393.html https://www.newyorkstatedestinations.com/explore-niagara/elmwood-village-hipster-hotspot/ http://www.wivb.com/news/local-news/group-speaks-out-against-gentrification-in-the-queen-city/1083119084.

Joe Splitrock good points . The media can make things very dark and negative . Like you said even during the Great Recession most people were employed . The thing is lending became a lot tighter especially for investment property . Now it’s harder to find the deals but much easier to get the lending . There are these larger companies getting into hard money lending etc with relatively low terms . I could be wrong but I believe during the housing crash it wasn’t possible to do the BRRRR strategy . In the next downturn I’m sure something similar will happen with lending and banks will tighten up , hard money rates will go up and they won’t be willing to loan as much of the purchase price .