Why Multi-Unit Property Investing Is Heating Up

Have you ever considered investing in multi-family housing or apartments? Many investors are entering this market thanks to the stable returns it offers compared to the stock market.

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Should you consider investing in multi-family housing or apartment buildings?

We're starting to see a lot of our investors that own residential investment property consider selling condos and single-family homes to leverage their equity into multi-family or apartment buildings. A multi-family unit has one to four units, whereas anything with five or more units is considered commercial.

So why would these investors do this if they've created such great equity already?

Well, the market is changing, and demographics are changing, too. People are renting longer these days, so we're starting to see an opportunity for a good stream of income from a multi-unit rental.

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These investments don't have the volatility of the stock market.

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If a single-family or condo rental home goes vacant, you still have expenses coming out of your pocket. With a multi-family rental property, you have multiple streams of income, which is a great way to build passive wealth and build retirement income.

You'll also build your net worth over time.

These properties are very desirable, but they can be tricky to find. If you can't buy in California in the area you want or the price you want, I can absolutely refer you to an agent in my network of top agents across the country in areas where there are great investment opportunities.

Secondly, there are a lot of tax and financial advantages. I'm no CPA or Financial Planner, but I've seen clients build phenomenal wealth over their career through property investments and apartments. With a lot of volatility in the stock market, many investors are leaning toward the real estate investment market. They know they can get a cap rate between 4% and 12% (the money you'll make after all the expenses) and realize that this is a lot better than they could do in the stock market or a bank.

We don't see the volatility because it's a long-term scenario.

If you're interested in learning more about investing in multi-family properties or apartments, give me a call or send me an email. Let's get the conversation started soon.

5 Reasons to Own a Southern California Home

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According to a recent study by the Joint Center for Housing Studies at Harvard University, home buyers consider not only the social aspects of the investment, but the financial ones as well. In this article, I found five important points worth mentioning.

1. Paying rent doesn’t make sense. This is especially the case in Southern California, where rental payments continue to skyrocket. If you’re a tenant now, consider how much you’re paying each month. Ultimately, your rent only benefits you in the short term, but helps your landlord’s mortgage in the long term. If you pinch a few pennies, you could be submitting a down payment on your very own home.
2. Homeownership provides financial opportunity. Investing in your own property can lead to other investments. Plus, you’re putting money every month towards something of your own, not your landlord’s.
3. Owning a home helps build family wealth. If you want to pass an investment on to your children, this is a great way to start. They can inherit the home when they’re older, especially when you’re ready to move out and downsize.
4. Homeownership helps you retire. Although you won’t be able to retire right after buying a new home, the investment drives planning. It helps facilitate retirement.
5. Homeownership builds equity. It allows you to leverage yourself into other potential wealth-building opportunities. For instance, it could lead you towards paying for your kids’ college education, an investment property, or a trip around the world. The possibilities are endless!

If you’ve been on the fence about purchasing a home in the surrounding area, consider the financial benefits. Give us a call or send us an email! We look forward to serving your real estate needs in Southern California.

Reconsider These 3 Remodeling Projects

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

If you’re a buyer, you need to consider the outcomes of any home improvement projects. Do they actually add value to your home and is there really a good ROI opportunity? Today’s topic includes three remodeling efforts that might not be worthwhile in Southern California.

1. Adding a pool: Although it’s great to have a pool in a warm, desert-like area, there are lots of community pools available. In the Orange County market, not everyone wants a pool. The cost of a pool might not be financially worthwhile unless you plan to live in your home for a long time.
   
   
2. Personalized kitchens: Your idea of a kitchen might not be appealing or enticing to a buyer. My recommendations are to stay neutral with colors and trends, in hopes it will appeal to the masses.
   
   
3. Adding an extension: Adding space can benefit your family, but it not might translate in value. Most buyers look to check off boxes in the process, such as two bedrooms or two bathrooms in a particular neighborhood.

Ultimately, your biggest ROI opportunities are in kitchens, bathrooms, and flooring. Make sure your home smells and looks visually-appealing for buyers coming through.

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Your biggest ROI opportunities are in kitchens, bathrooms, and flooring.

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If you’re thinking about buying or selling in the surrounding area, give me a call or send me an email at your earliest convenience. I’d be happy to answer any of your real estate questions!

Are Home Inspections Necessary in SoCal?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Welcome back, everybody. Today we are talking about home inspections, and whether you should get one on your next home purchase or not. 

I recently spoke with a few buyers, one who was purchasing a new construction home and one buying a resale home. They both asked me the same question, which was, "Should I have a home inspection done before I buy?"

My first bit of advice is YES! Get a home inspection on any home you plan on purchasing, regardless of whether it's a resale or a newly built home. With an inspection, you will have an independent professional who is going to check every corner of your home for any imperfections it may have. The inspection itself takes just a few hours, but it could save you so much more in the long run. 

Ten years ago, I purchased a new construction property. As I walked through the property with the builder's representative, who is there to protect the builder's interest, I noticed about 25-30 items that needed to be addressed. Once I ordered a home inspection, they found about 25-30 more problems that I completely missed. 

Once we are armed with that list of items, it puts us in a better position to negotiate and get the things fixed that would have cost a lot more. 

On a resale property, we usually make a request for repairs. However, with older homes, things are going to come up, and you're not going to be able to have everything fixed as a buyer. The problem here is every buyer wants everything done on a home inspection, while sellers don't want to do anything. The trick is finding a happy medium, such as fixing all of the health and safety concerns and not as many of the cosmetic issues. 

If you are buying or selling, we recommend you get a home inspection. If you get one as a seller, it's a great incentive to offer buyers in a difficult market. 

So, get a home inspection and protect yourself. And if you have any questions, feel free to give me a call or send me an email. We look forward to hearing from you!

What Do Recent Southern California Market Trends Mean for You?

There are many great Orange County and Coachella Valley area homes for sale. Click here to perform full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I have a quick market update for Southern California, so you can have an idea of what to expect when buying or selling real estate this summer! 

Here are the most recent numbers for Orange County:

• Active listings: 8,454 properties, a 20% decline from last year
• Sales: 2,944 sales, a 10% decline
• Days on market: About 60 days

Here are the numbers for the Coachella Valley:

• Active listings: 6,372 properties, a 4% decline from last year
• Sales: 841 sales, a 6% decline
• Days on market: Around 100 days

What do these numbers mean for you? Give me a call or shoot me a quick email to learn whether now is a good time to buy or sell. It really depends on your particular situation, and I would love to sit down and break down the numbers with you. I would love to hear from you and help you make the most of current real estate conditions!

Prize Winners from Golf Tournament Announced

There are many great Orange County and Desert Cities area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (949) 441-0701 for a FREE home buying or selling consultation to answer any of your real estate questions.

Prize Winners from Golf Tournament Announced

 This past week, we participated in a great event at Talega Golf Course. St. Edward the Confessor School and Knights of Columbus put on a charity golf tournament and we had a blast. There was a great turnout of about 150 golfers, and the weather was perfect for golf. We sponsored the first hole, where we collected information for a raffle that we are going to announce the winners of now. 

The first prize, a $100 gift card to The Chart House, goes to Donovan Walsh! Congratulations!

Our second prize, a box of Callaway balls and a $10 Starbucks gift card, goes to Frank Fleming.

Finally, our 3rd prize, a $20 gift card to Starbucks, goes to Pat O'Connell. Congratulations to all 3 of you!

Thanks again to everyone who came out for this event, it was great meeting so many of you. If you have any questions at all about real estate, please feel free to give us a call or send us an email. We want to be your source for the most accurate real estate information out there.