Latest / Own More Doors / #77 The Long Beach 5+ Unit Market Just CRASHED — Here's What $1M Buys You in 2026

Transcript

#77 The Long Beach 5+ Unit Market Just CRASHED — Here's What $1M Buys You in 2026 · Own More Doors

• 0:00
  SPEAKER_00: They purchased this one for 3.75 million.
• 0:03
  SPEAKER_00: The loan amount was 3.46 million.
• 0:06
  SPEAKER_00: This one just sold for 3 million, 5,000.
• 0:10
  SPEAKER_00: Not only did the investor lose everything, the bank took a big hit.
• 0:13
  SPEAKER_01: The five plus market in Long Beach has cracked.
• 0:18
  SPEAKER_01: Tune into today's show so that you can learn how you could take advantage of what is happening today.
• 0:23
  SPEAKER_01: A lot of the sellers that are selling are losing$500,000,$600,000, a million dollars from five years ago when they last purchased.
• 0:32
  SPEAKER_01: That's how much you could get as a discount on what they last purchased.
• 0:37
  SPEAKER_01: I'm Juan Weezar.
• 0:39
  SPEAKER_00: And I'm Cody Charnell.
• 0:40
  SPEAKER_01: And we're gonna do a deep dive on how this is the best time to get into the market today.
• 0:45
  SPEAKER_01: We're also gonna talk about how much of a down payment it takes.
• 0:48
  SPEAKER_01: Um, what does$500,000 buy you?
• 0:50
  SPEAKER_01: What does$750,000 buy you, and what does a million dollars buy you so that you could know for yourself what is it that how far can your dollar take you today?
• 1:00
  SPEAKER_01: Thanks for tuning in while we do a deep dive.
• 1:02
  SPEAKER_01: Okay, so let's just say you have a million dollars.
• 1:05
  SPEAKER_01: Where's the million dollars gonna come from?
• 1:06
  SPEAKER_01: Okay.
• 1:07
  SPEAKER_01: Um a lot of people, so we have one specific client, he's gonna be selling his investment house and he's gonna net a million dollars, contacted us.
• 1:14
  SPEAKER_01: And so this kind of what gave me the idea to do this video is that a lot of people in our world have a lot of money.
• 1:21
  SPEAKER_01: I'm not saying that we do, but they do.
• 1:24
  SPEAKER_01: Okay.
• 1:24
  SPEAKER_01: And so we so they come to us, and whether it's a half a million or or more, this is what they have.
• 1:30
  SPEAKER_01: And so we have a property here and it's a 19-unit building in Long Beach.
• 1:34
  SPEAKER_01: It's currently priced at 3,698,000.
• 1:37
  SPEAKER_01: It is pending, but we're just gonna give you an example of how far your million dollar goes.
• 1:41
  SPEAKER_01: So we're gonna look into our Excel sheet, what we call our pro forma, and just kind of go through the numbers with you so you can follow along.
• 1:48
  SPEAKER_00: Yeah, and to expand on what Walmart's saying, this guy's selling a house, the housing market has not crashed like the five plus market.
• 1:56
  SPEAKER_00: So this particular investor is getting to sell at the top and buy at the bottom.
• 2:02
  SPEAKER_00: So it's awesome strategy for right now.
• 2:05
  SPEAKER_00: Um, and yeah, let's take a look at this one.
• 2:07
  SPEAKER_00: So this property is active on the market right now, located in downtown Long Beach.
• 2:13
  SPEAKER_00: Beautiful old brick building, 19 units listed for 3.6998.
• 2:19
  SPEAKER_00: And it's comprised of 12 studios, six one-beds, and a two-bed.
• 2:23
  SPEAKER_00: Rents are already at market price, the units are already in great shape.
• 2:29
  SPEAKER_00: And here's some photos you can see.
• 2:31
  SPEAKER_00: They've done new floors, new kitchens, new baths.
• 2:34
  SPEAKER_00: Um, nothing really that needs to be done right now.
• 2:38
  SPEAKER_00: And what's interesting about this one, as Woman was saying, a lot of people are in a tough spot who bought these buildings five years ago.
• 2:45
  SPEAKER_00: So they bought when interest rates were super low, interest rates have since doubled, and that is directly impacting the value of the property.
• 2:53
  SPEAKER_00: So, on this one, this particular investor, they purchased it in 2021 for$4.2 million.
• 3:00
  SPEAKER_00: It's now listed for about$3.7.
• 3:03
  SPEAKER_00: So$500,000 discount right off the top from what this building was worth five years ago.
• 3:09
  SPEAKER_01: I'm just gonna add something to this.
• 3:12
  SPEAKER_01: Um, when when they bought it for$4.2 in 2021, they've they've improved the building and they raised the income.
• 3:21
  SPEAKER_01: Yes, yes, you're getting a$500,000 discount, you're also getting a much better asset with better income.
• 3:27
  SPEAKER_01: So it's it's not like apple for apple comparison.
• 3:30
  SPEAKER_01: You're getting a much better property, better income, better improvement, and oh, by the way, you get$500,000 off.
• 3:35
  SPEAKER_01: And very rarely are we in the situation where things are being sold at a discount.
• 3:41
  SPEAKER_00: Yeah.
• 3:42
  SPEAKER_00: Uh you know, the real estate market has been super competitive for the last, I don't know, as long as I've been in it.
• 3:49
  SPEAKER_00: And this is one of those situations where it's scary.
• 3:53
  SPEAKER_00: Um, we don't know, it doesn't feel like a good time to buy since there's all this stuff going on in the economy.
• 3:58
  SPEAKER_00: But things are discounted, and this is exactly when you want to be buying.
• 4:02
  SPEAKER_00: So this is our pro forma for this property.
• 4:04
  SPEAKER_00: You can see the purchase price.
• 4:06
  SPEAKER_00: This one's priced at 9.89 times gross and about a six and a half cap.
• 4:10
  SPEAKER_00: Um, and you can make this one work easily with a million down.
• 4:15
  SPEAKER_00: So with$1 million down, this building qualifies for a special loan program.
• 4:22
  SPEAKER_00: Uh, it actually has this type of loan on it right now, but the interest rate's much better than what you'll see from some other banks.
• 4:28
  SPEAKER_00: So you can get a 5.1% interest rate on this one fixed for five years, and you're hitting a 1.38 debt coverage ratio, uh, which is the metric that the lenders will look at to qualify you for a loan on a five plus unit building.
• 4:44
  SPEAKER_00: Um, they want you to be at least at a 1.2 debt coverage ratio.
• 4:48
  SPEAKER_00: And uh, if you're not familiar with that metric, what the bank is doing is they're looking at the building like it's a business and they want the building to cash flow right out of the gate.
• 4:59
  SPEAKER_00: So at a 1.2 debt coverage ratio, you're making about a dollar and 20 cents in net income for every$1 of your loan payment.
• 5:08
  SPEAKER_00: So they're just um creating some space there, um, creating a little profit margin where they're comfortable lending to you.
• 5:14
  SPEAKER_00: So this one exceeds what the bank is looking for, so you're in really good shape.
• 5:18
  SPEAKER_01: The average cap rate in Long Beach, going back 12 months, data directly from CoStar.
• 5:24
  SPEAKER_01: So I'm not making this up.
• 5:25
  SPEAKER_01: This is market derived city of Long Beach only, not LA County, Long Beach City, is six percent.
• 5:33
  SPEAKER_01: Cody just said it's at six and a half percent, and it's in a it's in a good area, it's in downtown, and it's a nice building.
• 5:42
  SPEAKER_01: So um this would be if someone's like, hey, I want to get a good deal, this is a good deal.
• 5:47
  SPEAKER_01: If the average cap rate is six percent, you're buying this at six point five, that's like a green, that that's the the the sign you were waiting to see.
• 5:58
  SPEAKER_01: It's you're you're clearly outperforming the market.
• 6:01
  SPEAKER_00: Yeah, and this one uh with some conservative estimates in here for things like vacancy, repairs and maintenance, we include expenses for property management.
• 6:11
  SPEAKER_00: You're you're gonna be cash flowing about 66 grand a year after paying all your expenses and financing.
• 6:18
  SPEAKER_00: So um this is a really solid option for someone who's you know it in one's client's situation.
• 6:25
  SPEAKER_01: One of the things that people tell me when when they're looking at larger units, so in the five plus market, they'll say, okay, uh, this is how much I have to invest, but I I must at least break even.
• 6:36
  SPEAKER_01: I said, and I tell him, congratulations, you're you're gonna cash flow.
• 6:41
  SPEAKER_01: Here's the important part when it comes to the five plus market.
• 6:44
  SPEAKER_01: Because it's because of the type of financing that we're gonna be getting, which is different than when you just get uh fourplex or a triplex financing, is that they want the property to be profitable.
• 6:56
  SPEAKER_01: And so not only uh are we underwriting the property for you as as our because you'll be our client, the bank is underwriting it.
• 7:04
  SPEAKER_01: And they're way more conservative than we are.
• 7:06
  SPEAKER_01: They're more conservative than you are, and they want to make sure that this property on its own is profitable.
• 7:11
  SPEAKER_01: So the good news to you um, if you're looking in the five plus market and if you're getting your traditional commercial type loan, you're going to be cash flowing.
• 7:20
  SPEAKER_01: It's gonna cash flow.
• 7:20
  SPEAKER_01: You don't even need to tell us or ask us.
• 7:22
  SPEAKER_01: We're gonna let you know it's gonna cash flow.
• 7:24
  SPEAKER_01: Now, that's assuming that we meet the debt coverage ratio, but for the most part, that's the difference.
• 7:29
  SPEAKER_01: At this level, the banks will not give you the loan if you need to subsidize the asset.
• 7:36
  SPEAKER_01: They will give you a loan if you're negative on a fourplex.
• 7:40
  SPEAKER_01: That's just the way it works.
• 7:41
  SPEAKER_00: All right, so this next one is in the Alamitos Beach neighborhood of Long Beach.
• 7:46
  SPEAKER_00: Uh, great location.
• 7:48
  SPEAKER_00: This one's on first, so you're less than a block to the Sandy Beach and the volleyball courts.
• 7:54
  SPEAKER_00: Um, really close to where some of the Olympic events will be taking place in a couple years.
• 7:58
  SPEAKER_00: Um, and the building itself is really nice.
• 8:02
  SPEAKER_00: So this is what I would consider a trophy property.
• 8:06
  SPEAKER_00: Um, it's Art Deco style, it's got a lot of character, really nice lush courtyard.
• 8:13
  SPEAKER_00: Um, you can see here, and there's actually a really cool penthouse up here, uh third floor unit.
• 8:20
  SPEAKER_00: What's interesting about this one?
• 8:23
  SPEAKER_00: Um, they've done upgrades to the major system, so plumbing and electrical has been upgraded.
• 8:28
  SPEAKER_00: And then in the back, if I can find the photo, there's also a uh bonus unit where the previous owner started to convert the garages into an ADU.
• 8:42
  SPEAKER_00: So you can kind of see it on the right side of the garages here, uh, but it wasn't completed.
• 8:47
  SPEAKER_00: So the new owner could come in.
• 8:48
  SPEAKER_00: Right now, this is a 12-unit building.
• 8:50
  SPEAKER_00: They can legalize that ADU, finish the process, make it into a 13 unit with pretty minimal effort.
• 8:58
  SPEAKER_00: And um, this one, it's not a situation where this owner bought it a couple years ago.
• 9:03
  SPEAKER_00: This is a long-term owner who um they had a death in the family, they're just selling this, but they have to price it um so it's competitive in today's market.
• 9:12
  SPEAKER_00: So um you're still able to buy it at a better price than you would have been able to buy it several years ago.
• 9:18
  SPEAKER_00: This one's priced at 11.2 times gross.
• 9:22
  SPEAKER_00: There is some upside because you have that ADU, so you can get it down to about 9.9 times gross once you get that 13th income and increase rents on a couple of the units.
• 9:32
  SPEAKER_00: And starting out, you're at a 5.8 cap, you can get that up to mid-sixes.
• 9:36
  SPEAKER_00: So um, this one also does qualify for that special loan program, and you can make the numbers work.
• 9:41
  SPEAKER_00: With a million dollars down, you're hitting a 1.3 debt coverage ratio.
• 9:45
  SPEAKER_00: Cash flow starting out about 42 grand, you can get that up to somewhere in the 70s.
• 9:51
  SPEAKER_01: So this one's a really good example of um someone says, Look, I want a prime property in a great location.
• 9:57
  SPEAKER_01: This is it.
• 9:58
  SPEAKER_01: The property doesn't need any work.
• 10:00
  SPEAKER_01: Um, a lot of the investors that we're talking to, um, typically in the world of apartment ownership, it's it's everyone wants to do this.
• 10:07
  SPEAKER_01: They want to be a value ad um investor.
• 10:09
  SPEAKER_01: So they buy a property that needs a lot of work, and then they spend a lot of money putting in the work, new windows, new roofs, plumbing, electrical, and they're pulling permits, or sometimes they try to get away from not pulling permits, and then the city finds out and then they stop their work, and now they have to go pull permits, and then they have to fight with tenants to do cash for keys.
• 10:28
  SPEAKER_01: It's a lot of work.
• 10:30
  SPEAKER_01: A lot of the investors that we're talking to today, they're like, wait, someone's already done the work for me.
• 10:36
  SPEAKER_01: I get to buy at a really good cap rate, and I'm just gonna buy and hold.
• 10:41
  SPEAKER_01: That's terrific.
• 10:42
  SPEAKER_01: And so a lot of our environment, not everyone wants to put in work.
• 10:45
  SPEAKER_01: A lot of people are just saying, look, this is a great time to buy.
• 10:47
  SPEAKER_01: I know I'm buying it at a discount, and all I have to do is wait.
• 10:50
  SPEAKER_01: And now what are we waiting for?
• 10:52
  SPEAKER_01: We're waiting for interest rates to come down.
• 10:54
  SPEAKER_01: Do we believe that they're gonna go up?
• 10:56
  SPEAKER_01: I don't think so.
• 10:57
  SPEAKER_01: I don't think they're gonna go up anymore.
• 10:59
  SPEAKER_01: I think we're at the peak level that we're gonna be in.
• 11:01
  SPEAKER_01: So all we do now is we just wait.
• 11:04
  SPEAKER_01: Um, people need housing, so buying apartment buildings, they're gonna be lining up to rent.
• 11:09
  SPEAKER_01: This property here had one vacant unit, and the only reason it was vacant was because we we listed the property, we told them to keep it vacant so we could show that one unit.
• 11:17
  SPEAKER_01: Otherwise, um people in the area wanted to rent it.
• 11:21
  SPEAKER_01: And so housing's in demand, and there's just not a better time to be involved in multi-unit than there is today.
• 11:28
  SPEAKER_00: All right, so this next one, this one's also located in downtown.
• 11:32
  SPEAKER_00: Um, this one recently sold, so it was listed for 3.2 million, sold for 3,050,000.
• 11:39
  SPEAKER_00: It's 21 units, uh, primarily studios.
• 11:43
  SPEAKER_00: So um there's just one one bedroom and then 20 studios.
• 11:48
  SPEAKER_00: And this one is more of an example of a value add deal.
• 11:51
  SPEAKER_00: So you can see rents are undermarket here for current.
• 11:55
  SPEAKER_00: So they have the one beds rented for$770, which is less than 50% of what it could rent for.
• 12:00
  SPEAKER_00: And then the studios range anywhere from$1,360 to like$1,100 a month, but those could easily get to$13.95 a month.
• 12:09
  SPEAKER_00: We we sold a building a couple doors down that was actually beating those rents.
• 12:13
  SPEAKER_00: So depending on what you wanted to do in terms of upgrades on these, um, there is quite a bit of upside in these rents.
• 12:21
  SPEAKER_00: Uh, the building itself is in decent shape, it's got a nice courtyard.
• 12:27
  SPEAKER_00: There's also two garage spaces at the back.
• 12:30
  SPEAKER_00: Um, you can see they upgraded some of the units, so you have new vinyl flooring, um, decent kitchens.
• 12:36
  SPEAKER_00: So at that 3,050,000 purchase price, you're buying it for 9.96 times gross.
• 12:41
  SPEAKER_00: And after capturing that upside, you're at 8.5 times gross.
• 12:46
  SPEAKER_00: So starting out cap rate is 6%, ending cap rate is 7.5%, which a 7.5% cap rate is crazy to think about because that was just not even a thing a few years ago.
• 12:58
  SPEAKER_00: This one would qualify for that special loan program.
• 13:01
  SPEAKER_00: So with a million down, you're far exceeding the bank's requirement for debt coverage ratio.
• 13:05
  SPEAKER_00: And cash flow in this one looks great.
• 13:07
  SPEAKER_00: You're at about 50 grand going in, and you can almost double that.
• 13:11
  SPEAKER_01: I mean, here's another example where a million dollars gets you 20 plus units.
• 13:15
  SPEAKER_01: In the first example, it got you 19.
• 13:16
  SPEAKER_01: In the second one, it was 12 plus the bonus 13th unit.
• 13:19
  SPEAKER_01: This one's 21 units.
• 13:21
  SPEAKER_01: Um, it's online.
• 13:24
  SPEAKER_01: So uh the area is still in the path of growth.
• 13:27
  SPEAKER_01: It continues to get better.
• 13:28
  SPEAKER_01: Parking's limited, so there's going to be that.
• 13:30
  SPEAKER_01: But overall, uh, people still want to live there, people still want to rent.
• 13:33
  SPEAKER_01: All of them were currently leased.
• 13:35
  SPEAKER_01: And so this is a great opportunity to pick up a lot of doors for a really good price.
• 13:38
  SPEAKER_01: Now, this one is already sold, but a year ago, exactly a year ago today, the average cap rate from all the sales was 5.8.
• 13:47
  SPEAKER_01: The cap rate now is six.
• 13:48
  SPEAKER_01: What does that mean?
• 13:50
  SPEAKER_01: For those of you who know, or those of you who've been following our videos, anytime the cap rates go up, the values are coming down.
• 13:56
  SPEAKER_01: So although last year was a great time to buy, it's a better time to buy now.
• 14:01
  SPEAKER_01: And not all the properties are gonna uh qualify for the special financing that Cody's talking about, the the 5.1.
• 14:07
  SPEAKER_01: But and even if you don't, you're looking at 5.75, 5.8 is where the interest rates are at as of today.
• 14:14
  SPEAKER_00: Yeah, and just uh making a little adjustment here.
• 14:17
  SPEAKER_00: So if I did a really conservative interest rate at 6.1, you're still hitting a 1.23 debt coverage ratio.
• 14:23
  SPEAKER_00: So this one still would work with a million down without having to do like a special loan program.
• 14:29
  SPEAKER_00: All right, so this is our last example.
• 14:31
  SPEAKER_00: This one's also in downtown.
• 14:32
  SPEAKER_00: Um, this one's interesting because this was uh a short sale situation with the lender.
• 14:40
  SPEAKER_00: So this person purchased the property with a bridge loan.
• 14:44
  SPEAKER_00: They bought an underperforming building with a short-term loan with really high interest rate.
• 14:48
  SPEAKER_00: They financed a lot of the renovations and the market shifted while they were in that process.
• 14:54
  SPEAKER_00: So um they were not able to refinance out of this property and had to sell at less than the loan balance.
• 15:03
  SPEAKER_00: So they purchased this one in 2022 for 3.75 million.
• 15:09
  SPEAKER_00: The loan amount at that time was 3.46 million.
• 15:14
  SPEAKER_00: This one just sold for 3 million, 5,000.
• 15:18
  SPEAKER_00: So the bank took a big hit.
• 15:19
  SPEAKER_00: Not only did the investor lose everything, um, spend a bunch of time upgrading the building, there's new electric, new plumbing, a lot of the units have been renovated.
• 15:29
  SPEAKER_00: But um yeah, lost, lost whole investment plus a lot of the bank's money.
• 15:35
  SPEAKER_00: Uh what you have is 20 studios, all of them are rented for about$1,400 a month.
• 15:40
  SPEAKER_00: There's still a little bit of upside in those rents.
• 15:42
  SPEAKER_00: This one's priced under nine times gross, and you can still capture some upside.
• 15:48
  SPEAKER_00: So, another really good example, this one would qualify for that special loan program, but the numbers um still work even if you're at like a more conservative interest rate and your cash flow looks great.
• 15:59
  SPEAKER_00: You're 70,000 a year cash flow going in, and you can increase that to about 90 over time.
• 16:05
  SPEAKER_01: Out of all the examples, I would say this one here, um, if someone really um if if the cash flow is one of your big priorities, this one is probably going to make the most.
• 16:13
  SPEAKER_00: Yeah.
• 16:13
  SPEAKER_00: Yeah, this one's this one's a dramatic example of like good pricing.
• 16:17
  SPEAKER_01: Well, this one here also, listen, someone else paid$750,000 more than that asset.
• 16:22
  SPEAKER_01: And so what I've learned just through different mentors, you know, as I go through, you know, as I spent years in this business now, is that a lot of people would say that at its peak it was worth$3,750,000.
• 16:36
  SPEAKER_01: And when the market recovers, which we know it will, we will surpass the peak.
• 16:41
  SPEAKER_01: But let's just stop there and just say that we get back to the peak.
• 16:45
  SPEAKER_01: This property is not a property where it needs a lot more work.
• 16:48
  SPEAKER_01: It doesn't need a lot more work.
• 16:49
  SPEAKER_01: So someone's gonna buy it and hold it, and it will appreciate with that$750,000 again.
• 16:55
  SPEAKER_01: And I think that that's the that's gonna be the game plan moving forward, I would assume, from the new buyer of this property.
• 17:01
  SPEAKER_01: So we just went through a few examples of what a million dollars gets you.
• 17:04
  SPEAKER_01: I personally just purchased an eight-unit building and a 10-unit building, and I'm gonna let you know what that takes.
• 17:09
  SPEAKER_01: And so in each one of those, now, like Cody talks about the debt coverage ratio, it all depends on every single building.
• 17:15
  SPEAKER_01: So no one's gonna say, look, you qualify for a$3 million property on anything you buy.
• 17:19
  SPEAKER_01: They're not gonna say that.
• 17:20
  SPEAKER_01: They're gonna say, well, it depends on what the price is for that property and where the rents are currently at.
• 17:24
  SPEAKER_01: And so it's important that you're working with a team like Cody and I so that we could analyze this property for you and let you know some of the buildings you're interested in will meet the debt coverage ratio, some of them will not.
• 17:33
  SPEAKER_01: The ones where you they don't, uh either you can't buy those or you're gonna have to go into alternative financing, which will cost a little more, but you could still do that.
• 17:42
  SPEAKER_01: It's not the end of the world.
• 17:43
  SPEAKER_01: But so with the eight-unit building and the 10-unit building, and they're in column mid-Long Beach area and mid-city, it doesn't have a real specific name.
• 17:52
  SPEAKER_01: One's on Redondo, one's on 10th.
• 17:55
  SPEAKER_01: Each one of those needed um 560,000 down, was was the amount.
• 18:01
  SPEAKER_01: And so if someone calls us and says, look, I have 500,000, we could probably confidently tell you, look, you're gonna get a really good eight-unit building for that.
• 18:11
  SPEAKER_01: Um, if you happen to have 700,000, then we could get you even a better building.
• 18:15
  SPEAKER_01: Um, realistically, if you have the million, that's where I think the best opportunities are at because you're really bringing down the price per door in that situation.
• 18:23
  SPEAKER_01: And um and just the amount of doors that you're able to pick up in the bigger units is where we're seeing a bigger discount as well.
• 18:33
  SPEAKER_01: I could tell you in my eight-unit building, when we got the appraisal done, the appraisal came in higher than my purchase price.
• 18:39
  SPEAKER_01: Uh, it just means we got a really good purchase price.
• 18:41
  SPEAKER_01: But why is that?
• 18:42
  SPEAKER_01: Well, properties on average are sitting on the market for six months.
• 18:45
  SPEAKER_01: And so here's one thing that I want you guys to know is that there's this narrative that the best deals are off market.
• 18:52
  SPEAKER_01: That is not true.
• 18:53
  SPEAKER_01: And I don't know why people say that.
• 18:54
  SPEAKER_01: And I'll tell you why it's not true.
• 18:57
  SPEAKER_01: When a seller contacts Cody and I with a 10-unit building, that seller at that point during that call might say, Look, I'll sell it off market, but I want this number.
• 19:06
  SPEAKER_01: Do you think that's a low number or a high number?
• 19:09
  SPEAKER_01: It is the highest number you could possibly be at that moment.
• 19:12
  SPEAKER_01: So yeah, I could call you and say, look, I have an off-market 10 unit building, here's what they want.
• 19:17
  SPEAKER_01: He's not giving me a low value.
• 19:19
  SPEAKER_01: He's giving me his highest value.
• 19:22
  SPEAKER_01: So yeah, do deals get sold off-market?
• 19:24
  SPEAKER_01: They do.
• 19:25
  SPEAKER_01: We do a lot of off-market sales because a lot of times the sellers will tell us, look, this is what I want, and we happen to have a buyer for it.
• 19:30
  SPEAKER_01: Uh, in fact, we just closed this this last week, we closed two different properties that never hit the market.
• 19:37
  SPEAKER_01: But what I'm seeing, and my advice to you is there's still good deals on the MLS, there's still good deals on CoStar and LoopNet because the strategy is with these units, because they're sitting on the market for at least six months or longer, you see price reduction, price reduction, price reduction, multiple.
• 19:53
  SPEAKER_01: It's not just one price reduction.
• 19:55
  SPEAKER_01: And you see this across the board.
• 19:56
  SPEAKER_01: And I'm not saying this is all the buildings go through this.
• 19:59
  SPEAKER_01: Some of the buildings get priced well from the very beginning because the owners know, look, I don't want to sit on the market that long.
• 20:05
  SPEAKER_01: The building that we showed you, 114090s first, that was my listing.
• 20:08
  SPEAKER_01: 19 days on the market.
• 20:10
  SPEAKER_01: 19, not six months, 19, but we priced it right from the from the get-go.
• 20:15
  SPEAKER_01: It's also a desirable location.
• 20:17
  SPEAKER_01: So I don't want anyone to think, like, oh, all the good deals are done, and by the time it hits the MLS, it's not a good deal.
• 20:22
  SPEAKER_01: That's not a true statement.
• 20:24
  SPEAKER_01: By the time it hits the MLS, it might be that premium price the um the seller of the 10-unit building um thought in his mind.
• 20:31
  SPEAKER_01: And then pretty soon we we let people know look, this is what we think it's worth.
• 20:35
  SPEAKER_01: Ultimately, the market's gonna tell us what it's worth.
• 20:37
  SPEAKER_01: And so that's where we see this climb down.
• 20:39
  SPEAKER_01: And it's kind of a rush to the bottom.
• 20:41
  SPEAKER_01: And for us, it's an exciting time.
• 20:43
  SPEAKER_01: We're investors, we want to position our specific buyers to win.
• 20:48
  SPEAKER_01: And right now it's like uh it's like we're buying things from the clearance rack, and I don't think that there's a better time.
• 20:53
  SPEAKER_01: So um, whether it's 500,000, 750,000 to a million, give us a call.
• 20:59
  SPEAKER_01: We'd love to work with you.
• 21:01
  SPEAKER_01: Thank you for watching.
• 21:02
  SPEAKER_01: Uh, make sure to like, comment, and subscribe until next time.