All Forum Posts by: Aaron Norris

Everyone has a different formula, @Dong Yan There are some very nice parts of MoVal and some rougher areas. But, some people don't mind that if the cash flow is there. Some investors who purchased from 2009-2012 are sitting pretty with a very low tax basis. They may never want to move. However, others think that even with another 20% increase in price that they'd rather move into different markets. It's already been a very exciting run for much of Riverside and San Bernardino when it comes to price growth. 

For Moreno Valley, you want to keep an eye on the World Logistics Center. It's the biggest project in the region that's been embroiled in years of lawsuits. If it goes through, it could change Moreno Valley drastically. It's a 2,600 acre site right before you go through the badlands going to Palm Springs. It would create some 40 million square feet of new buildings, mostly commercial from what I've seen. These would likely be logistic-focused business which have been highly automated because of robotics and AI. However, it could potentially add much needed higher paying jobs for those people that have a more technical background. We'll have to wait and see. 

The last article I can find on where the project is at is http://www.pe.com/2017/07/22/world-logistics-cente...

From what I understand, there are still many more legal challenges ahead. 

Southern California counties are huge. Riverside and San Bernardino are two of the biggest in the country. It has not had quite the run out coastal communities have had and from an affordability perspective, both will likely enjoy steady and slow increases. I forget how CoreLogic looks at valuations but in Riverside County alone, you've got Palm Springs, riverside, Moreno Valley, hemet, Temecula, etc. widely different markets with different things happening. I feel county-wide forecasting isn't always helpful. I wish I would have bought more for the long haul.

And, welcome to Cali @Tyler R. . It's a dry heat here. :)

Hi Tyler, check out the Inland Empire Real Estate Investment Club. Fairly large group and quite a few active investors in the mix. Most do single family but people show up that do everything from mobile homes to multi.

Looking forward to seeing you @Chris Clothier. Looking forward to spending some money in Texas as well. #supporttexas

The missed that it's also affecting seniors that are being forced to age in place because it's difficult to replace what they have for the price point and the basis. We heard this a few years ago from Leslie Appleton-Young, the Chief Economist of the California Association of Realtors. I wrote a blog post a little over a week ago talking about how this is all going to get real political. It already is here in California. 

First Tuesday has a great California-specific article that may help you on this one:

http://journal.firsttuesday.us/usury-and-the-priva...

It references the code so if you'd like to take a deep dive, you can go further. Looks like they've got all your questions on one page. I believe this comes from their textbook and was surprised to find it on their website. 

Thanks @Mike Flora . None anytime soon. Since that was his 10-year outlook, that should last a while unless something drastic happens. 

@Rob Tossberg , I am not selling all my rentals but I am repositioning to other assets in different areas but keeping the properties I love. I've got some amazing financing on some rentals and I bought them at a price that I don't know if they will ever sink to again. LA is hard because cash flow just isn't happening unless you're headed up north. It's definitely not 2011 anymore. And, we are telling our network to not expect that market to correct mistakes. So, don't buy a flip thinking it will increase 10% a year! 

@Jay Hinrichs , that's a loaded question! That's why we had that February event. It ended up being 10 hours of info. Let's put it this way, we're expanding our business in California. We're now lending in Norcal.