All Forum Posts by: Account Closed

 Before getting into that... question #1 is if it is even legal to wholesale where you are located.

 And when next you are on the CARs website, they also publish data on qualifying income for mortgages based on the amount of the mortgage. Look up qualifying income data while on there.

This is an example of what an Accountant makes in LA based on survey of some 700+ salaries by indeed. Now you tell me, what a salary of $58,000 can buy you in LA. Heres a hint, something in the $284,000 range. 

Median LA home prices is in the $700,000 range. Thats average, sketchy suspect neighborhoods. See below what the qualifying income would have to be for a "median" property in LA.

So you have an accountant not able to afford a home in LA yet you guys keep claiming to be in awe that someone would suggest there is an affordability crises.

Just about every LA investor I talk to 'feels' there is money everywhere in LA -- literally flowing in the streets. I show you labor department data showing median family income in LA to be in the $50,000 range and 2 times or more, less than the qualifying income for a median property in LA and you have the very same people try to tell me, well, "their parents can afford to buy the house for them" or that tech sector represent all of LA. What does that have to do with what we are talking about? They 'feel' a majority of residents in LA earn way in excess of $100,000. Are absolutely unbothered by negative cashflowing properties and cap rates approaching 1% territory in some areas. Feel that to value properties in LA, traditional standard valuation techniques and methodologies do not apply (evidence of a bubble and overinflated prices by the way - euphoria). 'Feel' is it irrational to expect properties to cash flow, rely excessively on appreciation as the primary play in LA. I even had someone had the nerve to tell me that in order to value a rental property in LA, you had to use rental growth rate of 10% or more. Get a grip! Price controls is not in place because regulators are just bored and feel like exercising.

 It sounds more like you just like following Mike Fletcher around ... looking for your girl again? Wait, let me check... she aint here!

 I think you must be one of them too... not sure who is paying you guys to follow me around, I mean stalk me, stirring up all these negativity or what you feel threatened by.... I would strongly suggest you find an alternate line of work... or find someone else to bother.

 There is some truth to this... not just overpaying. In many cases you have no credible way of ascertaining the value of the asset using standard industry valuation techniques. In LA, they'll want exemption from any and everything... 1% rule for instance, doesnt apply there, rental, were never meant to cash flow they'll tell ya. You know there is a problem when you buy a rental asset but when trying to value the asset, all you have ia a string of negative cash flows almost throught the entire holding period... banking solely on appreciation. I stopped counting the rules that dont aply to LA.

 That'll do it. I need to own a sports team in California. It seems like people there are so emotional about anything California they often just get completely numb to the facts. 

Now you claim that UCLA is not a typical governemnt entity and that somehow, they recruit top notch economist and researchers who just so happen to know a thing or two about economics that economist and researchers at the federal reserve dont. Seriously?

You are talking about people  at the federal reserve in charge of managing the economy and formulating montary policy with far reaching global scope and consequence. 

Last time I checked, state of CA can hardly look past state of CA. Do you see the bias of your arguements? 

That is what is happening here... you guys get too emotional and start rambling all over the place.

 You have to focus on what a bubble really is and its characteristics?  Asset value gets overinflated... the market price of the asset deviates drastically from its intrinsic value... a supply shortgage can actually trigger or significantly increase the formation of bubbles.

 lol :-) maybe he stopped responding to CA investors because the deal wasn't cash flowing? :-)