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Monday
The Real State of Real Estate...
This month, we're going to give you investors the simple, knock-out combination for creating your real estate legacy. Caution, this may cause your great grand-children to raise a glass anytime your name is mentioned.
Buy SFR's. Most of you know that SFR stands for "Single Family Residence". But for some savvy investors, their SFRs are making them So Filthy Rich.
Now, we're sure some of you are saying; "SFRs? What about units? I want units!".
Here's why SFRs:
- NO RENT CONTROL: Avoid relocation fees (up to $17,000!), impossibly low rents, and bad tenants you can't get rid of. SFR's aren't subject to LA's lovely rent control laws. Hooray!
- Easier To Rent: Most renters would choose an SFR over sharing walls with some stranger any day. And most are willing to pay a premium for it.
- Higher Rents: See above.
- Fewer Expenses: Have your SFR renters pay all their utilities. Water, gardener, etc. Plus you can lock in a home warranty that will cover the costs of minor break-downs to keep you from having to run out and fix a clogged sink at 1am.
- Friendlier Loans: Anyone trying to get a loan on a non-owner occupied income property right now? It ain't easy, especially anything over 2 units.
Lending on an SFR is far more user-friendly.
- Better Re-sale: There are more buyers in the market for an SFR than income units. More buyers = greater demand and we all know what that means.
Food For Thought: "Whatever you can do, or dream you can do, begin it. Boldness has genius, power and magic in it. Begin it now." Goethe
This is an opinion and should be treated as such. Investing in general carries significant risk. You could lose your entire investment.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
This means that just because a particular investment worked in the past does not mean, in and of itself, that the same indicators will cause a similar profitable effect.
WE MAKE NO REPRESENTATION OF CLIENT PROFITS.
Unfortunately we cannot guarantee you profits. There are no guarantees of profits in real estate or in any other investment for that matter. In fact, in many cases customers suffer a loss of all or part of their investment dollar.
INVESTORS CAN AND DO LOSE MONEY.
Every sale produces a winner and a loser. Money is not created or destroyed, it just changes ownership. If investing will alter your style of living in any manner to the worse, do not invest.
Labels:
Los Angeles,
real estate,
SFR
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