All Forum Posts by: Tom Murtagh

Just my two cents (four cents factoring inflation...)  Supply is very low. Demand is very high.  The looming foreclosures must first satisfy the pent up appetites of the masses of anxious buyers before downward pressure is applied. New construction has been affected by Covid as well, tightening supply further.  When supply is high and demand is see-sawed lower, prices will drop. Interest rates will need to rise also. 

And yes, buyers are anxious. Psychologically, the pandemic has turned the concept of "home" into a national religion. Relentless messaging of "stay home, stay safe!!!!!!" has had an impact.  Unlike stocks, having a house is now perceived as a matter of life and death to millions. It's been turned into a Fortress against the virus.  The buyers I deal with aren't just seeking a good investment, they are creating a sanctuary from this pandemic and vague, future threats. And the pandemic will be with us at least another year or more.  Fear will hover over the nation until it abates. Sellers will benefit from this fear, in my opinion, and keep prices stable or push them higher. That's my five cents. 

Survey and percolation testing for the installation of a septic tank.  This company does much of those tests: http://www.ampacpercolationtes...  They'll need a site plan in order to establish the location for the tank.  We have sandy soil which is generally positive for percolation tests.  Good luck. 

A RE agent/colleague of mine had his clients scammed out of about 320k earlier this year. The wire fraud included hacked emails and a phone number with an "escrow officer" standing by to take the call and reassure the victim. I heard that the FBI was not particularly interested in their case because the amount was not close to other, greater scams. (Though God knows it devastated them...) It's a huge and dangerous criminal industry and you cannot be too careful.  

Travis, I ended up coming down with a pretty nasty bout of flu the day we were supposed to go...and we didn't. Hope to see you at the next meetup.  Cheers.

Travis, we are traveling that day up to Bay Area.  Would be there otherwise.  I hope it's a great meeting and please let us know what is on the table that evening.  Luck.  

Thanks for organizing this, Travis. Great to meet everyone.  

Benjamin,

The cities of Yucca Valley and 29 Palms have created permitting procedures for vacation rentals.  Both are actual incorporated cities while Joshua Tree is actually an unincorporated area of San Bernardino County.  As is Landers,  Morongo Valley and Wonder Valley.  In the interest of clarity you might want to consider those two cities for vacation rentals.  They both seem to enjoy the tax revenue that has been gained.  SB county is relatively underfunded and will probably welcome money as well but right now it is unclear how vacation rentals will pan out.  

Stella,

Finding good cleaning and/or maintenance is a challenge in all markets. It's true that in the Hi-Desert some properties are very remote and may present an additional challenge. Others are minutes away from downtown areas and may make a smarter choice.  No matter where you buy, in state or out of state, it is important to get to know that area well and understand its pros and cons.  You must try to form a local's point of view even if you are not an actual local.  So spending some time in that city is a smart investment, IMO.  

There are cleaning and maintenance workers available in the HI-Desert. I can give some references in that regard. An an investor, I would want to meet such contacts before I bought a property. Talking to tradespeople is educational,  whether in the Hi-Desert or Trenton, NJ.  I don't think you can know too much about your location and its quirks. Due diligence.  Etc. 

An area to consider investing is the Hi-Desert/Morongo Basin.  The towns of Morongo Valley, Yucca Valley, Landers, Joshua Tree and 29 Palms.  Yucca Valley and 29 Palms specifically have clarified the permitting process and the ensuing steps for vacation rental properties. Both cities seem to welcome the tax revenue generated by vacation rentals.  Proximity to Joshua Tree Nat. Park drives over three million visitors to the area per year, creating demand for getaways. As does Instagram Nation.   Joshua Tree has gotten a bit pricey and it is unincorporated, unlike 29 Palms and Yucca Valley.  Prices are rising in the area but there is still the opportunity for cash flow if deals are chosen carefully. 

Peter, was that property that sold for cash in Joshua Tree?