All Forum Posts by: Eric James

thats an understatement.. any property bought in those counties in the early 80s has gone up 6X to 20X I had one in Sonoma county that I paid 27k for in mid 90s and sold in 2020 for 2 million :)

I think I have done well on my San Diego RE purchases, but none have close to that multiplier (I do have one that has more increase than that but it cost $775K so its multiplier is a little over 4, it is not my highest multiplier).

Coastal California has produced great returns for the RE investors.

the house I bought in Palo Alto in 85 ish for 185 ish last sold in 2021 for 3.5 million.. I sold out at 500k.. thinking no way it could go higher :(

To be fare my Sonoma county property was not a house it was land in the path of progress and as we know land in the path of progress can have the highest multiplier of all real estate. just have to figure out where the city is going to expand and buy farm ground and hold .. thats what we did.. it was an un buildable ( would not perc) 3.5 acre plot when i bought it. so just paid tax's of 300 a year and field mowed it every few years.. And then wait.

It's easy to not factor in the value of appreciation compounding over years. $185k going to $3.5 M over 36 years is actually only an 8.5% annual rate of return. Nice to get, but it isn't as astronomical as the $3.5M sounds.

0 Votes

Last year I had 2 houses that are very close to each other appraised. One that was half the size of the other, and in worse condition, was appraised to be worth 20% more than the other. It was not worth more than the other, I just got one appraiser who didn't do a very accurate appraisal. It happens.

The case reported on is selectively reported, and a sample size of 1. If the appraisal had come in as higher for the black owner it would have simply been unreported and no one would have ever heard about it. But people are dumb enough to think that a single instance of something like this means anything.

8 Votes

No. The root cause of high housing prices has been 12 years of artificially cheap money (financing) driving prices up. And now money ain't so cheap anymore.

9 Votes

Phoenix, Arizona

I've never seen a wholesaler deal in my area that was worth buying. Have even had them sent to me that were currently listed in the MLS.

2 Votes

In my view, you buy if the cash flow makes sense. Even if rates are higher than you'd like. You can refinance later if or when rates go down.

1 Vote

Seattle, Washington

Quote from @Huso Akaratovic:

@Jay Hinrichs Thank you for breaking it down for me. I will not make any decisions until they provide me with the lease. As of now, I have not received it. You def have provided me with a good advice.

Reality is they probably don't actually have a lease, so you don't want to just plan on waiting indefinitely.

1 Vote

Quote from @Joe S.:

I have noticed over the years quiet a number of very ambitious investors talk about how they will give to charity at the end of their life. Why do so many people act like they will be a blessing one day when they’re too self-absorbed and selfish to be a blessing today?

I'm not delusional. I'm going to be self absorbed and selfish until the day I die. Everything I'm building is for my kids. I'm not looking out for anyone else.

1 Vote

Is there a reason to not rent to her that does not violate federal fair housing laws?

0 Votes

Denver, Colorado

"Fairness" is just an emotional way to manipulate people.

1 Vote

San Francisco, California

Quote from @Jay Hinrichs:

why would anyone air bnb a basement in a house full shared tenants ??? that sounds like very poor accommodations. Are you sure anyone would rent that as a str. I tried the shared housing on low end units its a nightmare your dealing with tenants with very limited income and almost always a ton of drama.

Cleveland has some nice 2 to 3 to 4 units which run as standard small plexs and you can buy those on the WEST side of town for 130 to 200k.. rents will be 700 plus per apartment.. just sayin..

I think your looking at a ton of management hassles trying to shoe horn folks into shared living.

Yes, he'd be frequently dealing with the police as well as the tenants.

0 Votes

Cleveland, Ohio

All Forum Posts by: Eric James

Eric James has started 22 posts and replied 2235 times.

Post: "Nowhere on Earth compares to CA home price growth." Wonder what county has highest!

Post: Black couple’s home appraises for $500K more when white pal poses as owner

Post: Housing is a Rip Off: The National Disaster and 11 Steps to Fix It

Post: What is your opinion on wholesalers?

Post: Anyone else waiting to buy once things settle?

Post: Auction Purchase...Evil Tenants= HELP!!

Post: Being a blessing later self delusion

Post: Would you rent to a stripper??

Post: What is fair in this business?

Post: Almost in escrow on a house in Cleveland. Would like input.