TLP27: Is it a Good Time to Invest in California Real Estate? with Anthony Walker
When you go to conferences, nobody’s talking about going to California. And we can read in the headlines that people are leaving in droves for the Sunbelt. In this episode, we’ll hear about the real opportunity in the real estate market in California from Anthony Walker of Buckingham Investments.
Yes, there is out-migration, but it’s not devastating, according to Anthony. There are a lot of choices also in the market. For example, you can buy a one-and-a-half cap rate in Beverly Hills or get a five-and-a-half cap rate in other parts of LA. In Long Beach, there’s a diverse job base and lower-income areas that are higher up in the risk profile. Listen now to learn more!
Key Points from This Episode:
- A good syndicator from a broker’s perspective.
- The current real estate market situation in California.
- Why millions of people still want to be in California.
- The real estate market opportunities in California from a demographic and fundamental standpoint.
- The real estate market opportunities in Long Beach as compared to the more Central LA.
- A look at the exit strategies in the California market.
- What is gross rent multiplier (GRM)?
- GRM vs cap rate.
- The market situation in Southern California from a supply and demand perspective.
- Anthony’s sales pitch for Southern California.
- Micro market opportunities in Southern California.
Tweetables:
“People love to say don’t bet against California because if you look at these charts, it just tends to keep defying logic, no matter what the state government might do.” [00:05:41]
“It’s easy to underwrite a building and focus on the numbers and operations and stuff like that. But being able to know really what we’re gonna be able to sell a building for in the end, what it’s really worth today, what the market actually looks like, and what a winning offer is likely to look like is a huge competitive advantage versus other people.” [00:07:05]
“It’s about knowing your operating partner, you making sure that they understand what they’re doing, that their strategy has a track record of success, and that that aligns with your goals. You’re gonna be able to probably make money in any market, honestly.” [00:22:22]
Links Mentioned
Buckingham Investments website
The Unofficial Guide to Real Estate Investing (Unofficial Guides) by Spencer Strauss, Martin Stone
About Anthony Walker
Anthony is the CEO and managing broker of Buckingham Investments. Just as Buckingham Investments has been doing for over 50 years, Anthony seeks to be a trusted advisor and assist his clients with achieving financial independence and retirement security through investing in multi-family income property. He believes that real estate wealth is not created only at the time of purchase, but well before an investment is ever made through education and planning.
He teaches frequent seminars on many aspects of investing and has been an invited guest speaker at multiple educational institutions and trade organizations throughout Southern California. Practicing the investment philosophy he teaches, Anthony has also developed an extensive portfolio of income property, the vast majority of which is located in the local Greater South Bay of Los Angeles.
Anthony received his Bachelor of Arts from The University of Southern California and his Master of Business Administration from Loyola Marymount University.
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