Oh my gosh, I love San Diego. That is like seriously one of my favorite places to
jam with my family but is this a market that you should be investing in when it
comes to real estate? Find out.
I love San Diego. There's this tiny little hopper flight from where I live
here in Utah, it's like, man, I can hit the East, I can hit the West. My family just
this last year, we hopped on a plane, went down to San Diego, it's got this perfect
climate, we were doing some SeaWorld, checking out the zoo, it's a lovely place
and it's not overcrowd and it's not overpopulated but friends, where it's at
in the game a real estate, it is past its prime for a basic of investor that's
looking for good safe returns. Check it, we have right now population of 1.4
million people and the median home price is now already over $600,000 and that's
up 9% from the year before and the reality is that it's slated to be
like some of the big cities in California and New York, it's just going to
keep going up but understand the basic economics of winning in the game of real
estate is a balance of gains and risk and we have to have risk if we want
gains but there's smart risk and there's dumb risk and anytime you go into these
highly populated areas and where the median home price is now, if
the national median is $200,000 and San Diego's $600,000
or New York is you know, $700,000 or we get to these
areas that are significantly over, they produce incredible risk because you know,
you could actually be a native to that area, have bought a home,
owned it for a number of years, have a couple hundred thousand of equity and you're like,
hey, I'm going to take it out and I'm going to buy an investment property. Markets like
that, they can go up 10% from one year to the next and you're going to see
$60,000 a game, it can do it for 4 or 5 more years, you can
be up a quarter million and they can lose it all overnight. Why? Because the
market has to correct, it's all supply and demand, it all comes
down to population and I love to invest in markets around the country where the
population hasn't hit its growth, businesses are moving in, cost of living
is still low and you can buy your houses under the median, those are some of the
things that I look for for hitting a homerun in the game and investing
because let me ask you, in the game of growth and if there was a hundred grand
to make on a property, what is safer, the first $20,000 or the last $20,000?
Well for sure, the first $20,000, right? Cause you know, I got eighty
more thousand to grow. Okay, I want to ask you, what's safer? The first $50,000
or the last $50,000? Well the last $50,000 is going to be safer, okay. What's safer?
The first $70,000 or the last $70,000? Well the first $70,000 is going to be safer.
For that same reason, I'm not going to invest in these high population
markets that have median home prices that are double, triple and
quadruple what the national median is. Why? Friends, they're on the tail end of
the growth curve. Now if you're a multimillionaire, you've got lots of
money and you're playing a long game, that can work for you but even on
just simple rental real estate, once you get over a few hundred thousand dollars,
you can't actually rent the property for what the mortgage is if you
put 20% down which means that you enter a high-risk proposition, you need to put
larger amounts down, you're putting a lot more money at risk. I play a game of
diversification, I could own one home in San Diego or I could own four homes in
the Midwest or Florida, North Carolina, some of my hot markets that I'm in and
the difference between 4 to 1 home is that if one home takes a major bath and
these four homes take a minor bath, which investment is left better off? These four
are always going to be better off, they're going to have higher cash flow,
they're going to have higher equity in growth potential and you also need to realize
that if you want to play this risk game and you go up 20% when
you're in cash out $200,000, you can sell out of the market, you can make a grundle
but you better know how to predict in time the market which I haven't figured
out. It moves in principles and patterns and it follows them no matter what but
when it's going to happen, nobody knows, not the smartest people on the planet. The
smartest people on the planet don't even know that so either you're banking on
everything that you know or you can step into a system that's a lot safer. So
friends, love San Diego, it's not the place where I'm going to play and jam and
do all of my real estate investing, it is where I'm going to play and jam and hang
out with my family, my friends and have a wonderful time together. Meanwhile,
I'm going to go into safer markets that have safer and better gains in that 10%
15% 20% annualized return amount. San Diego is such a nice place to visit
just about any time of the year but I'm going to take my real estate ventures in
other markets. If you want to know if they are, check out the playlist, we'll
link you up on some of our nation's hottest markets right
now and then aside from that, if you really want to get your real estate
investing game on, click the link, learn what you can from me and my team on our
website about how we can get you rolling right now whether you got money, whether you
got no money doesn't matter to me because I started with nothing and I'm
telling you, real estate is a game where you can take yourself anywhere starting
with nothing.