All Forum Posts by: Rich Somers

Hi Eamon, Yes- we will meet at this same venue once per month on Mondays.  The next one will be Sept 23rd, and then Oct 21.  If you want to DM me your email address I can add you to the event email list. 

Hi James, we meet at the Stone Brewery in Liberty Station San Diego.  The address is posted above.  If you have any questions or need help finding the location your welcome to reach out to me at 619-866-8869.  Also if you want to Personal Message me your Email Address, I can add you to the event email list.  

Please join us for a couple drinks and a chance to meet and network with other San Diego Real Estate Investors. No pitching, no fees, just networking. We will be regularly meeting on Monday's from here on out, I hope this bodes well with your schedules.  Look forward to seeing you guys there! 

We are posted up in the far back left corner of the patio where the green turf is. I look foward to seeing everyone!

Most of the markets that provide a good blend of both cash flow (yield) and growth right now are in the Midwest. Many of these markets also offer lower property taxes, favorable landlord-tenant-laws, and lower competition from other out of state investors.

Here are the markets I like in no particular order:

-Little Rock, Arkansas

-Oklahoma City, Oklahoma

-Tulsa, Oklahoma

-Wichita, Kansas

-Columbus, Ohio (fastest growing Midwest city)

-Indianapolis, Indiana

-Louisville, Kentucky

-Lexington. Kentucky

-Cincinatti, Ohio

-Fort Smith, Arkansas

Many argue we are in the 7th or 8th inning of this market cycle.  Buy for cash flow at the top of market cycles, and buy for appreciation at the bottom of market cycles.  With the limited amount of information you provided, the $3,500 in cash flow is the no brainer here.  

Yea I’ve been hearing my colleagues, neighbors, and friends since 2016 talk about another market crash that’s coming. Colleagues have sold their homes and have since been renting waiting for housing prices to come back down so they can buy again. I have friends that have never owned, who are qualified to own, and have been waiting on the sidelines since 2016 for “prices to come back down”. If you truely study the fundamentals of our economy, you will see that there are no signs of a let down coming. Home ownership percentage is still very low as a country.

I live in San Diego, the population growth here is increasing by 30,000 people every year. The average household in San Diego has 2.2 people living in it. This means to meet the population growth, we need to build roughly 13,000 new homes per year...all costs aside it’s just not possible. (Ocean on one side and mountains on the other side).

There’s also the Pacific Pivot which is occurring right now. The Pacific Pivot is the relocation of our Navy presence. As a country our threat is no longer in the Middle East, but instead it’s accross the Pacific in China and North Korea. Because of this, the Navy is shifting the majority of its presence from east coast to west coast making San Diego it’s largest Navy base in the country. By 2025, San Diego will have 50 total Navy ships in the harbor bringing an additional 15,000 sailors into town. For every 1 sailor, this actually brings an additional 10 full time people to San Diego between family members, contract employees to support the Navy sailors, and also the the contract employees family members.

So on top of the already 30,000 annual increase in population growth were experiencing, an additional 150,000 people will be here by 2025, with a department of defense spending budget that spends money like there’s no tomorrow.

What we’re seeing right now in our country is more powerful than a market cycle. We’re seeing baby boomers move out of our work force and into retirement meanwhile the millennial generation is moving into the bulk of their working years and many of them will be working and making decisions in this country for the next 35-40 years.

Market cycles last 7-8 years, but demographic cycles last much longer. What if we’re just in a double header?

@Jaysen Medhurst

We’re under contract now. Yea it’s a little suspect. I’ve done my due dilligence and I feel great moving foward without the tax returns however what concerns me is the fact that I will have less favorable lending options because of this.

My lender asked for seller to provide tax returns for the past 3 years of a 5 unit i have under contract, and seller said no. My lender said it’s fine but it limits the number of banks that would be willing to lend to me which could result in less than favorable rates and terms. Is this common for “mom and pop” type owners to not be willing to provide tax returns for a property? Also, seller provided copies of signed lease agreements..but in addition to this would it be a good idea to request estoppel agreements from the tenants?

Thanks!

@Saj Shah

Thanks for the advice, I spoke with a bunch of local banks close to the property today and most of them seem to have stricter guidelines in regards to lending to out of state investors. I found a couple mortgage brokers here in San Diego that do commercial loans this size and are happy to help. They also work with 100+ banks which will give me better odds of getting this done. Yes. with a mortgage broker, I will be paying higher closing costs, but the rates and terms seem to be much better than what the local banks were offering me.