Real Estate Investing In Southern California

Date:

Investor From Hawaiian Gardens California

Southern California Real Estate: The Lowdown on Trust Deed Investing

I’ve purchased 2+ properties in California and Ohio for > 5 years. My Duplex in southern California was bought for 440k in 2015, it was appraised this year at 660k . Nearly 50% appreciated and It cash flows about 200$/mo after mortgage/expenses etc. but the appreciation has gave me leverage/capital to invest in other properties.

I have several properties in Ohio that I had refinanced into 15 year loans and they each cash flow 200$-500$ after mortgage and expenses. They’ve appreciated 20-30% since I bought them in 2016.

It really depends what you’re looking for. The Ohio properties will be paid-off and I’ll be financially free in my 40s, but I couldn’t acquire those Ohio properties without the appreciation I received from my California properties.

The Current State Of The Real Estate Market In Southern California

There are a few differing opinions on the current state of the real estate market in Southern California. Below we delve deeper, and offer a thorough analysis of the current state of the real estate market in the area.

Over the past year, the housing market has begun to return to normal rates. During the last few years, the market was too volatile for investors, proving too much of a risk. But lately figures have shown that things are starting to get back to normal. The California Association of Realtors show that price increases are returning to a historically normal territory which in the long run is helpful because it puts the market back on the path for sustainable growth. For example, the median home price has flat lined at $382,000 through October of this year. This may be due to a number of factors that include an extensive supply of homes, buyers fatigue due to inflating prices, and high mortgage rates. The number of listings has also risen over the past year causing a higher supply, which is deemed healthy. This is partly due that the number of listings are from homeowners as opposed to banks selling repossessed properties .

All Of Southern California Investment Properties For Sale Get On The Preferred Buyers List Its Free

Once we secure a new property that fits our criteria, we immediately notify our Preferred Buyers of the deal. First, we notify those who have provided us with specific information on the types of properties theyre looking for then we notify those buyers on the Preferred Buyers email list.

Because of the excellent investment property buying opportunity in todays market, we add new All of Southern California handyman properties that are far below market value to our list weekly and they tend to get snapped up extremely quickly.

So, are you interested in getting on our Preferred Buyers list so you can be notified of each new discount home or investment property available? Excellent!

Also Check: Real Estate Investing Best Sellers

Anaheim Real Estate Near Disneyland Makes A Great Investment

If youre looking to invest in Anaheim real estate near Disneyland, youve got a wide variety of residential and income properties to choose from, no matter what your budget. Homes near Disneyland are popular among investors because of the short term rental opportunities for families vacationing to the Happiest Place on Earth 365 days of the year. That being said, whether you are doing Airbnb or traditional long term rentals, the demand is steady.

Investing In Southern California

Pin by William Burdine on Real Estate Deals DONE ...

The California Golden Fund is dedicated to providing flexible equity and debt financing to projects that promote job growth and meet requirements of the United States Citizenship and Immigration Services EB-5 Investment Program. EB-5 funding is a low cost source of financing that can easily be combined with other forms of project financing. CGF is approved to fund a broad range of economic development, public/private, and private sector projects including hotel, retail, medical, office, industrial, infrastructure and transit orientated development projects opportunities in the following California counties: Los Angeles, Orange, Ventura, Riverside, San Bernardino, Imperial, Alameda, Contra Costa, Fresno, Kern, Kings, Madera, Marin, Merced, Monterey, Napa, San Benito, San Francisco, San Luis Obisbo, San Joaquin, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Sacramento, Solano, Sonoma, Stanislaus, Tulare.

Magnificent sunsets, miles of spectacular beaches, top universities, over 300 sunshine filled days each year all make Southern California one of the most desirable places to live and do business in the world. Since the region is highly sought after, the demand for real estate and availability of investment opportunities in Southern California ranks among the top, when compared to other world economies. There are several key advantages to investing in Southern California:

You May Like: How Much To Invest In Cryptocurrency To Become A Millionaire

Everybody Makes Mistakes Whats The Biggest Mistake Youve Made In Real Estate Investing And What Did You Learn From It

Answer: Tenants can make you or break you. A lot of beginning real estate investors including myself when I first started in the business make the mistake of being more concerned with minimizing the amount of vacancy between tenants than they are with finding and keeping great tenants.

Its critical to take the time and vet potential tenants who will take care of your property and pay their rent on time. Renting to the wrong tenant can end up costing you literally thousands of dollars in unpaid rent, legal fees, and eviction costs.

Is Investing In Real Estate Better Than Stocks

Is Investing in Real Estate Better Than Stocks?

With the recovery underway in the California real estate market and elsewhere in the U.S. it is interesting and timely to look at returns generated in residential real estate and compare this to returns generated in the equity markets. At this point, many of my clients are inclined to invest in real estate feeling that the time is right to purchase an investment home and that returns going forward will be superior to what they could achieve elsewhere. The question is: is this assumption correct? In an effort to shed some light on the comparable returns, I have assembled data showing year-over-year returns and long term average returns for both residential real estate and equities markets.

What is important to remember is that this appreciation is before routine repair and maintenance that must be done on homes, let alone eventual updating and ongoing landscaping and other costs that would reduce the net appreciation considerably. In my work conducting financial planning with clients I often counsel them to budget at least $500 per month for these costs in Napa. Other researchers, such as mortgage research firm HSH.com estimate these costs at a minimum of about 1% of home value, very close to my own estimate. So the true value of appreciation in Napa real estate net of these required costs is closer to 5.77%, or less. Good but hardly spectacular.

You May Like: Can Non Accredited Investors Invest In Startups

Would We Be Better Served To Continue Putting $5000 Or More Into Stocks Each Month Buy A Rental Property In Another State Where The Market Is Great

For this couple, buying their dream home in Southern California could mean sacrificing their ability to save for retirement.

  • Resize icon

Dear MarketWatch,

My wife and I are in our mid-30s and live in Southern California and have a combined income of about $350,000. We currently invest $5,000 a month into index funds and ETFs. We have recently begun to look at homes as our rental costs about $4,500 per month. However, for even $1 million in our area, you will get a fixer-upper that is over 60 years old, which is undesirable to us.

Moving out of SoCal isnt an option because of work. With an annual income of around $350,000 which is projected to increase again soon, should we try to save the requisite $300,000 or more for a jumbo mortgage in SoCal with a mortgage that will likely cost our current rent plus the $5,000 we put into the market monthly?

Or would we be better served to continue putting $5,000 or more into stocks each month, buy a rental property in another state where the market is great and continue to rent?Sincerely,

Cash-strapped in SoCal

The Big Move is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage.

Do you have a question about buying or selling a home? Do you want to know where your next move should be? Email Jacob Passy at .

Dear Cash-strapped,

What you shouldnt do is buy a home that is so expensive that you wouldnt be able to save at all.

New Construction Investment Opportunities Alabama

Multi-Unit Investing in Southern California

Hello,My name is Zach Armstrong investment specialists here in Alabama. I joined the group in hopes to help investors get connected to properties here in the south and educate clients on market. Feel free to shoot me a message. I have at the moment 93 off market new construction properties completed or close to completion.Look forward to working with everyone.Renters Warehouse

Don’t Miss: Can You Make Money Investing In Cryptocurrency

Best Places To Invest In Real Estate In California

California is a very lucrative market for both traditional and Airbnb investment. Finding the best places to invest in California is easy with Mashvisor.

Based on Mashvisorâs cash on cash return real estate data, here are the cities where you can find the best investment property in California:

Best locations to invest in traditional rental property

#1. Citrus Heights, California
  • Price per Square Foot: $248
  • Price to Rent Ratio: 14
  • Monthly Traditional Rental Income: $1,985

Bishop Is One of the Best Places to Invest in Traditional Rentals in California in 2021

  • Median Property Price: $484,200
  • Monthly Traditional Rental Income: $1,877
  • Traditional Cash on Cash Return: 4.37%

To learn more about how Mashvisor can help you find profitable investment properties, schedule a demo.

#4. Cathedral City, California
  • Price per Square Foot: $234
  • Price to Rent Ratio: 15
  • Monthly Traditional Rental Income: $2,533
  • Traditional Cash on Cash Return: 4.17%
#5. Taft, California
  • Price per Square Foot: $112
  • Price to Rent Ratio: 15
  • Monthly Traditional Rental Income: $2,535
  • Traditional Cash on Cash Return: 4.17%
#6. Novato, California
  • Price per Square Foot: $559
  • Price to Rent Ratio: 15
  • Monthly Traditional Rental Income: $4,162
  • Traditional Cash on Cash Return: 4.17%

To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.

Best locations to invest in Airbnb rental property

#1. Riverside, California

Top Commercial Real Estate Investment Companies In Los Angeles

  • Commercial Real Estate Capital Advisory

    5.0100% Commercial Financing, Funding, & Investment100% Commercial Financing, Funding, & Investment

    Mandri Capital is a rare company in this business because of the integrity and care they bring to the table every day.

  • President, Metros Capital
  • WORLDWIDE LEADER IN REAL ESTATE SERVICES

    4.130% Commercial Financing, Funding, & Investment30% Commercial Financing, Funding, & Investment40% Commercial Property Management

    “CBRE did an excellent job.”

  • Head of Marketing, Payment Service Provider
  • We help your business scale.

    4.820% Commercial Financing, Funding, & Investment20% Commercial Financing, Funding, & Investment20% ERP Consulting and SI15% Accounting

    “They are very knowledgeable about stages and technology needs as a company grows.”

  • CEO, Access Management Platform
  • Commercial Real Estate/ Capital Market Advisors

    Undisclosed100% Commercial Financing, Funding, & Investment100% Commercial Financing, Funding, & Investment

    As one of the largest and most successful commercial real estate capital intermediaries serving the United States and Western Europe, HFF incorporates capital markets knowledge with local real estate…

  • 100% Commercial Financing, Funding, & Investment100% Commercial Financing, Funding, & Investment

    Oaktree is a leader among global investment managers specializing in alternative investments, with $120 billion in assets under management as of December 31, 2018. The firm emphasizes an…

  • Also Check: Optum Bank Hsa Investment Fees

    What You Need To Know To Invest In California Real Estate In 2021

    For many years, investing in California real estate was a no-brainer. Every year an extra half million people needed housing. And they mainly wanted to live in San Francisco or Los Angeles, places that are already full rents and home prices surged, investors couldn’t miss.

    Aerial view of the Pacific Heights neighborhood of San Francisco, California.

    Now the story is different. The population of California increased zero in 2019 and 200,000 people moved away, driven by high housing costs and few new jobs. They moved to Idaho, Colorado, Utah, Arizona, the neighboring lands of opportunity.

    There are still 15 million homes in California and a million of them change hands every year, so the real estate market is far from dead. But investors now have to be much more careful about exactly where they put their money and what kind of investment they make.

    The pandemic complicates the entire situation. Ultra-low mortgage rates in response to the economic disaster prompted a rush of home sales in 2020, sucking demand from 2021. The financial pain from the lengthening pandemic will bring evictions and foreclosures. Permanent job losses will push more people to move elsewhere. The housing situation won’t be clear until the pandemic is over – and we still don’t know when that will be.

    In these circumstances investors are best served by following the numbers, focusing on investments that are favored by local economics, and sticking to the “middle” of the market .

    My Suggestions.

    Why Is North Long Beach A Great Investment Opportunity For Anyone

    Pin by William Burdine on Real Estate Deals DONE ...

    The current property values in North Long Beach are currently still affordable and may be considered a bargain for many real estate investors and future homeowners. Knowing that hundreds of millions of dollars are being poured into one specific area of an already booming Long Beach, and a renaissance of new growth is occurring as you read this blog, all doubts should be cast aside.

    • For real estate investors: The amount of growth in the area positions North Long Beach properties for a great ROI and value appreciation.
    • For future home buyers: If every other part of Long Beach is out of your price range, homes in North Long Beach are still affordable.
    • For homeowners: The lifestyle shift and changing culture of the area along with new developments will allow a more convenient and better lifestyle.
    • For entrepreneurs: North Long Beach has a lot of vacant and affordable sites for business opportunities. However, we predict that vacancies wont last too long.

    Got more questions? Contact us or call Juan Huizar at 307-0838 to learn more about exciting investment opportunities in Long Beach, California!

    Richard Mark

    Also Check: How To Invest In Stocks Below 18

    What Investment Strategy Are You Using To Scale Up Your Real Estate Portfolio

    Answer: We invest in locations near our homes in Los Angeles, San Diego, and the surrounding submarkets. These are the areas were familiar with, and we have a solid understanding of the demographics and socioeconomic conditions of each area. We know the employers, local services, and schools, and this helps us determine appropriate market rents.

    As I assess investment properties for purchase, Im typically looking for immediate value, long-term appreciation and location, location, location. We diversify our real estate portfolio by investing in two types of property: workhorses or cash cows for short-term cash flow, and rising stars for long-term price appreciation.

    Workhorses generate dependable monthly income with little or no debt service and are in decent locations with moderate appreciation. Rising stars give us growing monthly income possibly with moderate or high debt service but are in great locations with high long-term appreciation potential.

    Whats Your Favorite Thing About Stessa

    Answer: Its difficult to choose one favorite aspect of Stessa because it makes my life and real estate investment business so much easier!

    First, its extremely easy to get set up with Stessa, start entering information, and using the Portfolio Overview to display your properties. Next, because cash is king in real estate, I love the way the Net Cash Flow by Month Chart illustrates my income and expenses month-over-month.

    The Transactions Section for tracking various income and expense entries and assigning them to the correct property is the perfect tool for reconciliation.

    Finally, the Property Donut gives me a comprehensive view across all of my investment properties by showing rental income, total square footage, and market value. Stessa is a valuable online investment property tool that lets me use data-driven decision-making to manage my familys real estate portfolio.

    Don’t Miss: Best Short Term Investment Strategy

    Real Estate Investing In Ca

    20411 Result for Real estate investing in CA. The most recent discussion taking place in the area asks: Wholesale Deals. There are 581 new off-market investment properties in CA. The most recent is a Single-family property listed at $1,808,977. CA has 66 real estate investment groups such as the Jerry’s Mentor Financial Group. There are 187,887 real estate investors in California. Many of these real estate investors specialize in Wholesale & Rehab Residential

    New To Real Estate From San Diego Ca

    Southern California Real Estate Agent: Locating a Great Investment Property

    I just bought a multi-home in Julian, CA in San Diego county. Im also looking into Boreggo Springs which are both in the San Diego County lines just more far out east. Those spots are pretty good for short term rentals because its a common place for local San Diego people to go on vacation without having to travel to far away for a total change of scene. Appreciation is also really high in these areas. Im just getting in the real estate game. I’m active duty and am going to be stationed in San Fiego for the next four years. To me, it’s not the most ideal location for my first real estate investments in comparison to other places but since I’m stuck here for awhile, might as well make the most of it and see if I can leave here better than when I got here 🙂

    I own two condos purchased back in 2015 in the Pasadena area. Solid gains / returns. Cash flow wise you can do better elsewhere. Both my condos are now 50-75% return.

    Would I do it again? Probably not. I was clueless and had not discovered biggerpockets so went in blind. Got lucky. I now only invest in cash flowing areas with some appreciation. Markets for me are part of TX and FL. Following the masses in terms of where they are moving to.

    CA also not tenant friendly. Im blessed to be in A class area with tenants having white collar jobs. Knock on wood for no issues in future.

    Good luck.

    Recommended Reading: Investing Apps For College Students

    Popular

    More like this
    Related

    Best Real Estate Investing Advice

    There Is...

    Series 65 Registered Investment Advisor

    Who Needs...

    Merrill Edge Self Directed Investment Account

    Merrill Edge...

    Investment Account Sign Up Bonus

    Acorns $25...