There are three main objections to investing in the California real estate market: there is a barrier to entry, the cap rates are too low, and the properties are too expensive. On today’s show, listeners will hear real estate broker Juan Huizar convincingly refute each of these popular claims, showing that this market not only has a promising future but is performing surprisingly well despite the recession. The show starts with our guest sharing his story of coming to the US with his family at a young age and how his parents instilled in him the values of perseverance and a strong work ethic. After being told that an accounting degree was the ticket to a prosperous financial future, Juan obtained this degree intending to become a CPA, but his path crossed with someone who introduced him to real estate investing and who led him to ultimately switch directions after graduation. We change gears to speak about the notoriety of the Southern California market, and Juan unpacks each of the common concerns and explains why none of them should deter an investor. This is not, after all, a get-rich-quick game but rather one that guarantees success if you stick it out for long enough. Juan offers advice for dealing with states like California that are not friendly to landlords, and he talks about the possibility of still landing cash flow deals in the area and where he believes the market is moving in the next three to five years. Listen in to also hear about his biggest-ever mistakes and his surefire formula for deciding whether to buy a property or not.
Key Points From This Episode:
- Learn about Juan’s background as an immigrant and the values his parents instilled in him.
- Obtaining a degree and accounting yet turning down the big firms.
- Juan talks about the person who introduced him to real estate and became his mentor.
- A summary of how the California real estate market is currently performing.
- Why you should not focus on the purchase price but on the payment/rent you are getting.
- Unpacking (and debunking) the perceived challenges of California real estate investing.
- The problem with looking only at the cap rate when deciding to invest or not.
- This is not a get-rich-quick strategy but a get rich guaranteed—if you give it enough time.
- Advice for overcoming the challenges related to investing in a landlord-unfriendly state.
- Tenants who are waiting in line to move in and other benefits of investing in SoCal.
- Juan on whether you can still get cash flow or only appreciation in California markets.
- A prediction of where the California market is headed in the next three to five years.
Links Mentioned in Today’s Episode: