All Forum Posts by: Rick Albert

The real estate license does not help you for investing in ANY way. The class is just tailored towards real estate in general and even then, most of it isn't even practical (I don't remember how many square feet are in a township but yet we had to learn it).

What kind of real estate investing do you want to get into? Much of it is on the job learning. That, plus good spreadsheets goes a long way. 

 Yea specifically Thousand Oaks and Simi Valley if I had to narrow it down. Oxnard has its own rent control so tread lightly there. 

I think slowly is an understatement. Thousand Oaks has appreciated much faster than parts of Los Angeles. Even Simi is getting up there. 4 bed light fixers are selling in the mid $800K range. 

 I've house hacked twice in Los Angeles. I'm in escrow to buy a new primary residence where, for the first time in 10 years, I will not have tenants on my property. But over 10 years I've been able to build up a portfolio of units. House Hacking doesn't have to be forever. 

Keep in mind house hacking is designed to get your foot in the door and to offset some expenses. If you are planning to live for free, that is challenging unless you put a lot of money down (defeats the purpose of leverage) and/or adding units (which can be costly and timely).

I think the challenge is people can't get over the hump that house hacking isn't forever. Get a duplex, live in one unit and rent out the other, and save. Then, if the numbers make sense, keep the entire property as a rental while you move on to the next one. Or, it might make sense to sell where the majority of the net proceeds are going to be tax free (you have to pay back depreciation, etc.). Either way it is a better option than renting. 

I grew up in the Bay Area and still have some friends up there so I have a high level view of the market.

As already mentioned, it is pricey. Good news is on the 4 ways to build wealth in real estate, high prices can mean high appreciation (3% on $700K versus 3% on $100K house) and high loan buy down. Basically you can build equity faster with higher priced properties.

If you can, I do agree that you should avoid manufactured homes unless there is something unique about it. I just helped a client buy one here in So Cal a few months ago but it was an amazing find and you never would have known it was a manufactured home. I only say this not because of the property specifically, but because of the HOA dues and everything around it.

Calling more Realtors looking for off market properties probably won't do much if what you want doesn't exist. You need to set realistic expectations first (assuming you haven't already).

My recommendation is to come up in price and buy a duplex. That way you can rent out the second unit and bedrooms if need be. The second unit's income can help you qualify. For example a very quick look in Alameda there are duplexes starting around $1M. Great schools, charming areas, etc. 

I've worked with a great agent/investor up there if you want me to do an introduction. 

Generally speaking, as long as the area has a decent population, you should be in good shape. As people get priced out of Los Angeles, they have to go somewhere. I have clients who invest in Riverside by the room and generally do well. 

For your price point, those are likely the areas to consider. I would also consider looking closer to Universities for a bigger tenant pool. It doesn't have to be students. It could be faculty, staff, exterior vendors, etc. 

In terms of appreciation, it really depends. I've noticed some slow down in areas like Palmdale and parts of the Inland Empire. Like I had mentioned, as people get priced out of LA, they have to go somewhere. However, at some point, it is the farthest they will go and that's when buyers/tenants may push back. With that said, if you provide a decent product at a decent price, high probability you will be fine.

If you can come up in price, I would consider Ventura County. Good appreciation, good jobs, and better weather than areas like the IE. Just something to consider. That will likely be my next California buy when I'm ready.

I would do the amendment, less to read and higher probability of accepting.

In terms of the deposit, to be honest why raise it? After 10 years, most of the damages may be consider wear and tear anyways and hard to charge them for it. For example if you put in brand new carpeting ten years ago, you probably won't be able to charge them for stains when it would need to be replaced anyways. I'm not saying don't do it, I'm just saying maybe focus on what matters, which is the rent increase. 

I've done it before. But you have to explain your position. Nothing makes you lose more like a "bottom feeder" than someone who comes in lower just because. Find out why it didn't go through. If it is for inspection reasons, then ask for the reports and then adjust your price. It is all about presentation. 

Keep in mind some sellers may not take less because they feel like "well if I got $X offer before, I can get it again." 

When I had done research in investing in Spain, the challenge was they have their own form of rent control laws and it is pretty extreme in favor of tenants. 

I think it depends on what your goals are. I would also look into the tax implications. I would want to know if I'm getting taxed in Spain and the US and how all of that would work.

You can also try Steadily.