Latest / Own More Doors / #92 The Best Time in 10 Years to Buy Apartments in Long Beach? (Alamitos Beach Data)

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#92 The Best Time in 10 Years to Buy Apartments in Long Beach? (Alamitos Beach Data) · Own More Doors

0:00
SPEAKER_01: I pulled money out of my 401k for my first property.
0:03
SPEAKER_01: It was a one of the best decisions.
0:05
SPEAKER_01: Does your family think you're crazy?
0:06
SPEAKER_01: You should have seen my mom's face when she saw my first property.
0:09
SPEAKER_01: She was like, What are you doing?
0:14
SPEAKER_00: So this is probably the best time to buy apartment buildings in Long Beach, really in Southern California.
0:22
SPEAKER_00: Um, probably the best time within the last 10 years.
0:25
SPEAKER_00: And and I'm sitting down with one of our agents, uh Nick Cordero.
0:29
SPEAKER_00: Um, and and today we're gonna be doing a deep dive in the opportunities that we're seeing in Alamitos Beach and North Alamitos Beach.
0:37
SPEAKER_00: We're gonna dive into the data, let you guys know what's happening with the fourplex market, but more importantly, in the fiveplex market, well, the five plus market, where we are really seeing um the biggest opportunities.
0:50
SPEAKER_00: Nick, welcome.
0:51
SPEAKER_00: I'm glad you're here today.
0:52
SPEAKER_01: Yeah, thanks for having me.
0:53
SPEAKER_01: First time here, so excited.
0:55
SPEAKER_00: Nick, Nick came to me, and Nick is a mechanical engineer, but he works uh in aerospace.
1:02
SPEAKER_00: And by the time Nick came to me, Nick was calling me on one of my listings and he had his license.
1:08
SPEAKER_00: So he was doing, you know, he was a full-time engineer and then doing real estate on the side, and we got to know uh know each other.
1:13
SPEAKER_00: And he he's got several apartment buildings.
1:16
SPEAKER_00: He does Airbnb.
1:17
SPEAKER_00: Uh, he's not afraid of taking risk.
1:20
SPEAKER_00: Um, recently bought a fourplex and was really close on buying one of my five unit buildings.
1:24
SPEAKER_00: Things went sideways.
1:26
SPEAKER_00: And so um, the one thing that that is important to me with the people that join Sage Real Estate is that we don't just sell real estate.
1:33
SPEAKER_00: We own real estate, we believe in it, we're taking risks, and we're really doing what we're telling people to do.
1:40
SPEAKER_00: So, Nick, um tell us a little bit about tell us a little bit about what you noticed uh during your deep dive about Alamitos Beach and North Alamitos Beach, and I'll let you take it from wherever you want to go.
1:54
SPEAKER_01: Yeah, so I think maybe we can start off like what's the divide, right?
1:57
SPEAKER_01: So Alamitos Beach, I consider anything below 4th Street up until Ocean Boulevard, and then anything above 4th Street to 7th Street is North Alamitos Beach.
2:07
SPEAKER_01: And then for the westbound, it's Alamitos Avenue for both, and then the eastbound is for Alamitos Beach is Tunapero Avenue, and then for North Alamedos Beach is Cherry Avenue.
2:18
SPEAKER_00: Okay.
2:19
SPEAKER_00: Um, so if someone's in an apartment, if someone's in an investor and they're they're looking at Long Beach and they're trying to decide where should I look to buy my first, whether it's a five unit or a four unit or eight unit, what what are the things that make Alamitos Beach and North Alamedos Beach unique?
2:37
SPEAKER_01: Yeah, so I think the thing that stands out is that you're kind of able to enter a coastal Long Beach market at a much more attainable price point as compared to like Belmont Shore and Bluff Heights.
2:48
SPEAKER_01: So that's one.
2:49
SPEAKER_01: And the second thing, I feel like if you look at the map, you're at a pretty central location.
2:53
SPEAKER_01: On the west side, really close, you have downtown Long Beach, and then east you have Belmont Shore, Bluff Heights as it's a short drive away.
3:00
SPEAKER_01: So um good location.
3:02
SPEAKER_01: Um, you have Retro Row, which is on 4th Street, very trendy area, lots of restaurants, shops, um, coffee places.
3:10
SPEAKER_01: So from a renter standpoint, it's you know very desirable.
3:13
SPEAKER_01: People want to live there, it's trendy from a long-term rental or short-term rental.
3:17
SPEAKER_01: And on top of that, we have the Olympics coming in 2028.
3:21
SPEAKER_01: Long Beach is hosting four or five events.
3:23
SPEAKER_00: One of them, Nick, more like 11.
3:25
SPEAKER_00: Oh, 11.
3:26
SPEAKER_00: Okay.
3:26
SPEAKER_00: It's a lot, which is it's it's even better for us.
3:28
SPEAKER_00: Okay, yeah, yeah.
3:29
SPEAKER_01: So I was gonna say one of those events, Beach Volleyball, it's in Alamitos Beach.
3:33
SPEAKER_01: Yeah.
3:33
SPEAKER_01: So it's right there.
3:34
SPEAKER_01: So I feel like prime opportunity if you own a property there and you want to do a short-term rental Airbnb, you can make some good money during that time.
3:41
SPEAKER_00: Nick, so the the and and I agree with everything you said, Alamitos Beach is affordable uh compared to other parts of Long Beach.
3:50
SPEAKER_00: You know, it's it's it's strange, Nick.
3:52
SPEAKER_00: People come to us and they're and at first they'll say, you know, if they're an investor, they're like, I want the best cap rate.
3:58
SPEAKER_00: And sometimes the best cap rate, when we show when we show it to them, it's not exactly in the areas that they want to be in.
4:05
SPEAKER_00: Yeah.
4:05
SPEAKER_00: And you know, sometimes they'll say, Well, I want to be near the beach, but Belmont Shore is really high in terms of pricing, in terms of cap rates really low, the gross rate multiplier is high, and you know, a lot of times people will use the word, hey, that you know, the numbers don't pencil.
4:18
SPEAKER_00: Belmont Shore is a great neighborhood, but I I think Alamedo's Beach, North Alamedos Beach, gives us a lot of options.
4:25
SPEAKER_00: When you bring up the Olympics, literally people could walk to go watch the sport.
4:29
SPEAKER_00: Yeah, they could walk from there.
4:30
SPEAKER_00: Yeah, and a lot of times, because we're not necessarily selling houses, a lot of times when we're selling a building, I always think of, well, what's the walkability?
4:40
SPEAKER_00: And what are the amenities for tenants in the neighborhood?
4:44
SPEAKER_00: Like, what would make if we buy this eight-unit building, who's gonna want to live here?
4:48
SPEAKER_00: Yeah, right.
4:49
SPEAKER_00: And so all the things you mentioned, retro row, we got the like that old school theater down there, restaurants kind of keep coming.
4:55
SPEAKER_00: There's a lot of cool stuff.
4:56
SPEAKER_00: You got Salud on the corner of Fourth and Cherry, and so there's a lot of cool stuff.
5:01
SPEAKER_00: So, Nick, um you recently bought in this area.
5:07
SPEAKER_00: Yeah, tell us about the investment that you bought, why you bought it, and then we'll go into the numbers and kind of the patterns that you're seeing.
5:13
SPEAKER_00: And and if someone's in the market, why they should consider this area.
5:17
SPEAKER_01: Yeah.
5:17
SPEAKER_01: So I bought a four-unit in North Alamedos Beach for the reasons I described with location, um, affordability.
5:24
SPEAKER_01: Um, what stood out to me in regards to that specific um building was that it was a huge building, 4,800 square feet, um priced at$290 per square feet.
5:35
SPEAKER_01: So I really like to get a low price per square foot personally.
5:39
SPEAKER_01: And then also the style home, it was like a statewide style home.
5:42
SPEAKER_01: So it has like a primary in the front owner's unit, and then attached three units in the back.
5:47
SPEAKER_01: And those units are like townhome style units.
5:49
SPEAKER_01: So it's like two-bed, one and a half bath, top and bottom floor.
5:53
SPEAKER_01: Um, each has their own patio.
5:56
SPEAKER_01: So um, me personally, I also like to think out of it from like a renter standpoint of like that's pretty desirable.
6:02
SPEAKER_01: Like you're kind of getting your own town home with a patio, and on top of that, has separate individual five-car garages with a common laundry area.
6:11
SPEAKER_01: So that stood out to me from that standpoint.
6:13
SPEAKER_01: Rents were probably like 20% below market, so not super low, but enough that I can raise it over time.
6:19
SPEAKER_01: And then on top of that, the garages, you know, I could probably build like one or two ADUs there if I want to in the future.
6:24
SPEAKER_00: So Nick, when you're and and when you're comparing this property to other properties, you know, you talked about square footage was important to you, which I think is important.
6:35
SPEAKER_00: You know, a lot of times we interview people or uh our clients and capries like the big driver.
6:40
SPEAKER_00: Yeah.
6:40
SPEAKER_00: Sometimes that gross rate multiplier very rarely is a price per square foot.
6:43
SPEAKER_00: Yeah.
6:44
SPEAKER_00: But I'm like you, I like to know well, what's the average price per square foot in the area and what am I paying?
6:49
SPEAKER_00: Am I paying the average or am I beating the average?
6:52
SPEAKER_00: Yeah.
6:53
SPEAKER_00: How did things play out when you did your research?
6:55
SPEAKER_00: Like uh with the with the data that you looked at, what is the average price per square foot in North Alamedos Beach?
7:00
SPEAKER_01: Yeah.
7:00
SPEAKER_01: So the average price per square foot is about$325 per square foot.
7:04
SPEAKER_01: Okay.
7:04
SPEAKER_01: So I'm under that.
7:05
SPEAKER_01: I was at$290.
7:06
SPEAKER_00: Okay.
7:06
SPEAKER_00: And so that for you checked the box.
7:08
SPEAKER_00: Like this is this makes sense for me to buy.
7:11
SPEAKER_01: Yeah.
7:11
SPEAKER_01: Yeah.
7:12
SPEAKER_01: Made sense for me to buy.
7:13
SPEAKER_01: And then two units were completely renovated with new tenants.
7:16
SPEAKER_01: So no work there.
7:17
SPEAKER_01: Two units do need work in the future.
7:19
SPEAKER_01: Um, but you know, the numbers, like I said, the rents were in like 50% below.
7:23
SPEAKER_01: And sometimes when I'm looking at a deal, that's one turn off, right?
7:26
SPEAKER_01: If it's like 50% below, it's like, okay, well, it's gonna take a whole bunch of time to get to market rent.
7:31
SPEAKER_01: So I like to be in a sweet spot of like maybe 30 to 20% below and still have that upside potential in rent.
7:37
SPEAKER_00: So Nick, you know, so right now interest rates are high.
7:42
SPEAKER_00: And a lot of our clients are saying, you know what, interest rates are high, values have dropped some, but not enough.
7:47
SPEAKER_00: At the fourplex level, the values really just flattened out.
7:50
SPEAKER_00: They really didn't go down that low.
7:53
SPEAKER_00: Um you're someone who went ahead and bought anyways in in this current market, in this current condition, this current climate, what what what opportunities are you you seeing that you could help them understand, like, hey, I'm an engineer, I'm really good with numbers, and with the money that I'm saving up from my job, I'm I'm deciding to place it in real estate in this current time.
8:20
SPEAKER_00: Like, how do you how do you make that decision and why aren't you scared?
8:25
SPEAKER_01: Yeah, so I mean, I bought in both environments.
8:28
SPEAKER_01: I bought when interest rates were super low, and I bought when there was pretty high.
8:32
SPEAKER_01: Um, you know, I currently own and manage 15 units.
8:35
SPEAKER_01: So I started back in 2019.
8:38
SPEAKER_01: Um, and I feel like whatever the situation is, I underwrite in today's environment.
8:43
SPEAKER_01: So if today's environment is a higher interest rate, I just see if those numbers can work out with the highest interest rate.
8:48
SPEAKER_01: And if it doesn't, then I pass.
8:50
SPEAKER_01: But if it does work out, then I buy it.
8:52
SPEAKER_01: And on top of that, you know, I if, for example, you know, the rates go down in the future, I'm not betting on that.
8:59
SPEAKER_01: But if they do go down, it's only a plus for me that I bought it at a slightly maybe discounted price at a higher interest rate.
9:07
SPEAKER_01: Um, and then on top of that, I think housing demand, it's it's not going away.
9:12
SPEAKER_01: Land is finite.
9:13
SPEAKER_01: I don't think you're gonna get much land like much more of coastal Long Beach.
9:17
SPEAKER_01: So whatever we have is what we have.
9:18
SPEAKER_01: So I feel like over time historically it's gonna go up and appreciate.
9:22
SPEAKER_00: So awesome.
9:23
SPEAKER_00: Um, I agree.
9:24
SPEAKER_00: I mean, I'm I'm also buying, you know, and and that's the other thing, too.
9:28
SPEAKER_00: When people talk about here at Sage Real Estate, all of us, all of us are investors, and all of us in the last 12 months have purchased more than one building.
9:36
SPEAKER_00: And it just it it lets people know we believe in our product, we believe in our city, we believe in the market, we believe that that it's that there's not enough housing, and we believe that ultimately it's gonna pay off.
9:49
SPEAKER_00: Now, in the meantime, we we get the benefit of providing housing for families, for couples, for individuals.
9:56
SPEAKER_00: Yep, and that's the other side too.
9:57
SPEAKER_00: And and at no point do we um, you know, you said that two of the units were fixed up and the other two will need to be fixed up.
10:04
SPEAKER_00: You know, you don't in your mind, you're not looking at it like, well, I'm never gonna fix them up.
10:08
SPEAKER_00: You want to make them better.
10:09
SPEAKER_01: Exactly.
10:09
SPEAKER_00: You know, and so and I talk about being a good housing provider, and it, you know, there's these terms that people use, and they'll say, Oh, you guys are slum lords and stuff like that.
10:18
SPEAKER_00: And they're not telling me that, but just sometimes you hear people say these things and it's like, well, not us.
10:23
SPEAKER_00: Yeah, we we want to provide a good product for the city and and continue making Long Beach better.
10:27
SPEAKER_00: Um, so talk to us about the fourplex market.
10:31
SPEAKER_00: What's the average uh fourplex price in North North Alamitos Beach um versus Alamitos Beach?
10:39
SPEAKER_00: And so let's start there.
10:40
SPEAKER_01: Yeah, so four plus market, or sorry, four unit market, basically North Alamitos Beach.
10:46
SPEAKER_01: I think I mentioned the price is$325 per square foot, and the average price is about$1.28 million.
10:53
SPEAKER_01: Um, and you can see the cap rate is about 4.2% or 4.42 percent, and it has a GRM about 12.
11:01
SPEAKER_01: If you go down to Alamitos Beach, you can start to see that you're paying a little bit more of a premium to get closer to the ocean.
11:09
SPEAKER_01: Um, average price is about 1.8 million approximately.
11:12
SPEAKER_00: That is a huge swing, yeah.
11:14
SPEAKER_00: And it's really not that big.
11:15
SPEAKER_00: I mean, Ford Street is a big divider, as is 7th and as is Anaheim, but there that's a big shift from call it close close to 1.3 to 1.8 is a massive swing.
11:28
SPEAKER_00: What do you attribute that to?
11:31
SPEAKER_01: I just think that I mean, I don't know, psychologically, like if you're thinking you're closer to the beach, you're gonna pay more.
11:38
SPEAKER_01: I mean, especially uh if it's a a property like on Ocean Boulevard, right?
11:42
SPEAKER_01: Like you're like right next to the beach.
11:44
SPEAKER_01: So I think the properties there are gonna be going for a lot higher.
11:47
SPEAKER_01: Um, so yeah, I think it's really just that.
11:49
SPEAKER_01: You know, you're a little bit closer to ocean.
11:51
SPEAKER_00: No, I think you're right.
11:52
SPEAKER_00: I mean, and because your data did have some fourplexes that sold on ocean, that's gonna drive that average.
11:59
SPEAKER_00: Where maybe in North Alamedos Beach, you don't necessarily have anything selling that high, right?
12:05
SPEAKER_00: Where we saw fourplexes on ocean selling for two million plus.
12:09
SPEAKER_01: Yeah.
12:09
SPEAKER_00: Oh yeah.
12:10
SPEAKER_00: Um let's talk about let's talk about gross rent multiplier in in Alamitos Beach versus North Alamitos Beach and walk us through that.
12:20
SPEAKER_00: What did you find?
12:21
SPEAKER_01: Yeah, so same thing there.
12:23
SPEAKER_01: The North Alamedos Beach had about 12 versus Alamitos Beach about 13.9.
12:29
SPEAKER_01: And same thing with the cap rate in Alamitos Beach, it's slightly lower at 4.75.
12:34
SPEAKER_01: So you can kind of see that you're getting a better yield in North Alamitos Beach.
12:38
SPEAKER_01: And that's why I bought there because the numbers make more sense there.
12:42
SPEAKER_01: I'm getting a little bit more return versus if you go to Alamitos Beach, sure, you're closer to the ocean, but it's like a couple of streets.
12:50
SPEAKER_01: Like it's literally like one street over and then you're in Alamedos Beach, but it it's not that much difference, you know.
12:55
SPEAKER_01: So that's why personally I feel like if you're an investor and you're looking for more like numbers make sense, better yields, North Alamedo's Beach can be a good play for you.
13:05
SPEAKER_00: Um you know, Nick, we've been following the fourplex market for the last eight years.
13:11
SPEAKER_00: And we're actually the only company that really specializes in the four-plex market.
13:15
SPEAKER_00: And for years, the average fourplex price was 1.4 million.
13:20
SPEAKER_00: It's dropped by 40,000.
13:22
SPEAKER_00: This is overall Long Beach.
13:23
SPEAKER_00: For anyone listening, this is all of Long Beach.
13:25
SPEAKER_00: The average fourplex in Long Beach typically uh would be 1.4 million.
13:29
SPEAKER_00: And so we've seen a slight drop because interest rates keep going up.
13:33
SPEAKER_00: So now we're like the average is 1,360,000 for all of Long Beach.
13:38
SPEAKER_00: Okay.
13:39
SPEAKER_00: Of course, you got parts of Long Beach that are dragging it down, you got other parts that are picking it back up, but the average is 136.
13:46
SPEAKER_00: And so what I'm looking at right now is that in North Alamedos Beach, you could get it for less than the average.
13:51
SPEAKER_00: And I would tell you that North Alamedos Beach is better than average, like way better than average, because there's other parts of Long Beach where I would consider more average.
14:00
SPEAKER_00: And so I guess from a um price, average price sale, I like it.
14:06
SPEAKER_00: Um, the gross rent multiplier for fourplexes versus fiveplexes is always gonna be higher.
14:12
SPEAKER_00: Uh, but you know, sometimes like if someone calls me out of the blue and says, Um I own a fourplex in this area, what's what's like the average gross rent multiplier?
14:24
SPEAKER_00: And most times I'll be like, uh, depending if it's a real average area or even below average, we're gonna be between 11 and 12.
14:30
SPEAKER_00: And so I feel like those these numbers are definitely matching.
14:33
SPEAKER_00: And and if I'm a buyer out there looking at buying my first fourplex, I really like the numbers in North Auto, Alamedos Beach.
14:40
SPEAKER_00: Yeah.
14:41
SPEAKER_00: Um, I think if you could get into Alamitos Beach without like way below the average, yeah, I think that would be good too.
14:46
SPEAKER_00: Because then on the other side, someone would say, well, Alamedo's beach, if I'm thinking exit plan, like, okay, I'm gonna buy there, I'm gonna pay a little more, but the comparables have proven to us that they do trade for higher, there's that plus also.
14:59
SPEAKER_00: Yeah.
15:00
SPEAKER_00: You know, in in that there's um values kind of driving it up, which I think is important.
15:06
SPEAKER_00: What else would you like to tell us about?
15:08
SPEAKER_00: Um, so if someone says inventory, hey Nick, um, I heard the podcast.
15:14
SPEAKER_00: How is inventory in either of these areas?
15:16
SPEAKER_00: Like, are there fourplexes on the market right now that they could buy?
15:19
SPEAKER_01: Yeah, so um right now there's I feel like there's more five plus units than four units in general, both North Alamedos Beach and Alamitos Beach.
15:31
SPEAKER_01: Um, but I would say like, yeah, the four unit is a little bit harder to come by.
15:35
SPEAKER_01: Um, and I think that's what you kind of see also with days on market.
15:38
SPEAKER_01: I think days on market for a four unit, I feel like if it's priced right, it will definitely go.
15:43
SPEAKER_01: Um, versus a five plus unit market, it's gonna questionable.
15:47
SPEAKER_01: Yeah.
15:48
SPEAKER_00: What was the days on market that you found?
15:50
SPEAKER_01: So days on market for four unit, um North Alamedos Beach was 25 days.
15:54
SPEAKER_01: So that's that's fast.
15:56
SPEAKER_01: That's quick.
15:57
SPEAKER_00: Yeah, yeah.
15:57
SPEAKER_01: Um Alamito's Beach about 70 days.
16:01
SPEAKER_01: Um, and then the five plus market was so the five plus market in Alamedo's beach, it was 158 days, but there was two properties that brought that a little bit higher.
16:12
SPEAKER_01: There was two properties that took like 400 days to sell.
16:15
SPEAKER_01: So if if you remove those two properties, it's closer to like 90 days.
16:20
SPEAKER_01: Um, and then same thing for uh the five plus in North Am Alamados Beach is like 37 days.
16:26
SPEAKER_01: Yeah.
16:27
SPEAKER_01: Yeah.
16:27
SPEAKER_00: Um the the average the average fourplex, I think, for all of Long Beach right now, if I go back 12 months, is probably about 64 days.
16:35
SPEAKER_00: For all of Long Beach, right?
16:36
SPEAKER_00: And obviously certain parts.
16:37
SPEAKER_00: I think I think what do you think is driving the really um what I would consider low days on market in in North Alamedos Beach?
16:45
SPEAKER_01: I think so if you scroll up to the inventory, um you'll see that um the Al North Alamedos Beach, uh, you know, it's only like a total of what is it, 56 available in North Alamedos Beach.
17:02
SPEAKER_01: So I so I would say like you have a little bit less there.
17:06
SPEAKER_01: Um and then Alamedo's beach, you have 172, but if you compare that to five units, there's a lot more five units than there is fourplexes.
17:12
SPEAKER_01: So I feel like maybe the four units don't come as often as compared to like a five plus unit.
17:17
SPEAKER_00: Yeah.
17:18
SPEAKER_00: I would also think because North Alamitos Beach is uh priced so well and it's a lower um price level to enter, yeah, that it's probably more enticing.
17:30
SPEAKER_00: You got a bigger pool of buyers, which is good.
17:32
SPEAKER_00: Yeah.
17:32
SPEAKER_00: Right.
17:33
SPEAKER_00: I mean, I mean, for days on market to be below the average uh in in North Alamitos Beach and the fourplex market, I think that's a plus.
17:39
SPEAKER_00: Oh, yeah.
17:40
SPEAKER_00: Um okay.
17:41
SPEAKER_00: Anything else about the fourplex market, either either area that you want to let us know?
17:46
SPEAKER_01: Um no, I think that covered it.
17:48
SPEAKER_01: Um I was just gonna say, you know, the average rent.
17:51
SPEAKER_01: I was gonna compare the average rent from North Alamitos Beach to Alamedo's beach, for example.
17:56
SPEAKER_01: Like a one-bedroom, your North Alamedos Beach may be around 1900, but Alamitos Beach may be about 2100.
18:03
SPEAKER_01: And then two-bedroom uh North Alamedo Beach would be like 2350, and then Alamitos Beach is 2500.
18:10
SPEAKER_01: This is just obviously it takes into you need to take into account it does have parking, laundry, and all that stuff.
18:15
SPEAKER_01: But you know, there's a little bit of an increase, but also you're paying a lot more for Alamitos Beach.
18:21
SPEAKER_01: So that's the thing where it's like the price to rent ratio and all that, you know, it really depends what you're looking for.
18:27
SPEAKER_00: Sure.
18:27
unknown: Yeah.
18:28
SPEAKER_00: With with the one that you bought, Nick, um, and I know you have a lot of experience with Airbnb, which is something that I I haven't gotten into, maybe just because it's just uh it came in later in my life, in my investment career, so it it was kind of like a surprise.
18:44
SPEAKER_00: And so maybe I just haven't wanted to go learn or maybe take the risk and dealing with people who aren't happy with their towels and pillows and yeah, yeah, kind of the hospitality side of it.
18:54
SPEAKER_00: Um are you doing Airbnb right now in Long Beach?
18:57
SPEAKER_00: And are you planning to do it there?
18:59
SPEAKER_01: So I'm not doing in Long Beach, but I do have an Airbnb in Big Bear.
19:04
SPEAKER_01: So, you know, it is a saturated market that has a lot of short-term rentals.
19:08
SPEAKER_01: Um, so I've gotten pretty good experience from that.
19:11
SPEAKER_01: And I feel like as long as you have systems in place, you have the right cleaner and handyman, it can be a little bit more hands-off.
19:18
SPEAKER_01: Like you don't have to be going in there and fixing things because they're my eyes and ears.
19:23
SPEAKER_01: Um, so for that reason, I have considered doing it in Long Beach.
19:26
SPEAKER_01: Um, because again, there's all kinds of events that go on in Long Beach throughout the year.
19:30
SPEAKER_01: Um, you know, there's the Grand Prix that comes.
19:33
SPEAKER_01: Um, and on top of that, like we discussed, there's the Olympics coming up too.
19:37
SPEAKER_01: So I feel like it's a good location.
19:39
SPEAKER_01: And even if you think about Long Beach in general, from distance from LA to OC, you're kind of like in the center.
19:45
SPEAKER_01: So I feel like it's a good location if someone wants to, you know, stay there for a weekend and needs to go to LA.
19:50
SPEAKER_01: So um, I would definitely consider like if I had a unit open up and if it made sense, I would consider doing short-term rental.
19:57
SPEAKER_00: One of the things that I learned from a client of mine, he he bought outside of North Alamedo's beach, more like downtown.
20:05
SPEAKER_00: And he said, I'm doing Airbnb.
20:06
SPEAKER_00: And in my mind, I'm like, who the heck is gonna rent there?
20:09
SPEAKER_00: Yeah I was wrong.
20:11
SPEAKER_00: He, you know, fast forward he closes the escrow.
20:14
SPEAKER_00: This was his dream to do Airbnb.
20:16
SPEAKER_00: I I I told him, I'm like, look, I don't have a lot of experience doing it, so I don't know how it's gonna perform for you, but try it.
20:23
SPEAKER_00: He's booked every day.
20:25
SPEAKER_00: And I said, Who is renting from you?
20:27
SPEAKER_00: And he said, uh, there are tons of conventions that come into town and people come in with their families.
20:33
SPEAKER_00: And so where either spouse will go to the, you know, the convention for two to three days, then the family is there, they go to the beach and they're in California.
20:43
SPEAKER_00: And he said the other thing was people come there and they are not necessarily there because of Long Beach, they're there because of Disneyland.
20:53
SPEAKER_00: And he said, We'll get people from Nebraska, Wisconsin, families, they'll come and they look at a map.
20:59
SPEAKER_00: And if you look at a map and you see Anaheim, you see Long Beach, you're like, oh, it's close, right?
21:04
SPEAKER_00: Now we know there's traffic, we know there's traffic.
21:06
SPEAKER_00: But he said um that Anaheim does not allow for Airbnb.
21:11
SPEAKER_00: That's right, which is good, I guess, you know, if you're trying to compete with uh if you're trying to kind of get your foot in the door there.
21:18
SPEAKER_00: And so I was surprised because sometimes people will tell me, hey, I like that building.
21:23
SPEAKER_00: I'm like, you know, others are doing Airbnb, and they're like, I don't think that's good for Airbnb.
21:28
SPEAKER_00: I'm like, you'd be surprised.
21:30
SPEAKER_00: You'd be surprised that even areas that you think people don't want to stay in, people are staying in.
21:34
SPEAKER_00: Yeah.
21:35
SPEAKER_01: And I and I agree because um I think about it too.
21:38
SPEAKER_01: Sometimes I'm looking at property and I was like, I personally wouldn't maybe want to stay there in Airbnb, but there's a ton of other people for different reasons that would want to stay there.
21:46
SPEAKER_01: And same thing with Disneyland.
21:48
SPEAKER_01: Anaheim, there's no short term rentals.
21:51
SPEAKER_01: Even if you go on Floritan, because I look at properties in different areas.
21:54
SPEAKER_01: Um, if you were to buy a property in Florenton, there's a wait list to be on a short term rental permit.
21:59
SPEAKER_01: And I've People that have been waiting for years.
22:01
SPEAKER_01: So even if you think, oh, well, I'll just go a little bit neighboring city, Forton, not too far.
22:05
SPEAKER_01: But yeah, and you're thinking you're gonna get a short-term rental, it's like good luck because you're gonna have to be on a wait list.
22:10
SPEAKER_01: So on beach, there's no there's no wait list.
22:12
SPEAKER_01: I just emailed somebody yesterday, like, hey, I'm just confirming from the city.
22:15
SPEAKER_01: I said, just confirming, there's no wait lists, right?
22:17
SPEAKER_01: For short-term rentals or anything.
22:19
SPEAKER_01: And she said, No.
22:20
SPEAKER_00: Yeah.
22:20
SPEAKER_01: No wait list.
22:21
SPEAKER_01: Interesting.
22:22
SPEAKER_01: Yeah.
22:23
SPEAKER_00: Okay.
22:23
SPEAKER_00: All right.
22:24
SPEAKER_00: So anything else with the four-plex market that you saw any trends or opportunities that you want to let us know in either in Alamitos Beach or North Alamedo's Beach?
22:32
SPEAKER_00: This is just for the four-plex market.
22:34
SPEAKER_01: No, I mean, I think it's pretty strong.
22:35
SPEAKER_01: I mean, we'll talk about it more with the five plus, but four units again, you can do conventional financing.
22:40
SPEAKER_01: It's 30 years, um, a little bit more desirable rates.
22:43
SPEAKER_01: So I feel like it's a little bit more of a buyer pool there as compared to like the five plus.
22:49
SPEAKER_00: Um interest rates have gone up and you and you brought up rates.
22:51
SPEAKER_00: Have you been quoted a rate since they they've gotten up?
22:54
SPEAKER_00: And do you know where they might be for saying like, so let's just say, look, a lot of our clients are going to say, look, I have 25% down.
23:01
SPEAKER_00: What does a fourplex go for?
23:03
SPEAKER_00: Um what are the interest rates that they're quoting out there?
23:07
SPEAKER_01: I would say it's definitely gone up over the past couple weeks.
23:10
SPEAKER_01: I think it's around seven or seven and a quarter.
23:12
SPEAKER_00: Okay.
23:12
SPEAKER_01: Yeah.
23:13
SPEAKER_01: So, like, I would like, for example, if I'm doing an analysis today, that's what I'm doing.
23:17
SPEAKER_01: I'm probably using seven and a quarter.
23:19
SPEAKER_01: I'm using I'm always want to try to be conservative when I'm doing the analysis.
23:22
SPEAKER_01: So probably seven and a quarter.
23:23
SPEAKER_00: Yeah.
23:23
SPEAKER_00: And for someone like you, when you see the rates go up, how you justify it is that's fine.
23:29
SPEAKER_00: Bring the price down.
23:29
SPEAKER_00: Yeah.
23:30
SPEAKER_00: Right.
23:30
SPEAKER_00: I mean, it's it's okay.
23:32
SPEAKER_00: It's it's one or the other.
23:33
SPEAKER_01: It's like it's like bittersweet in the sense of like, oh man, my mortgage is gonna be higher.
23:37
SPEAKER_01: But at the same time, it's like, okay, well, now, you know, someone's selling is gonna be staying longer because the buyers are gonna be like discouraged because of higher interest rates.
23:44
SPEAKER_01: So now I have less competition compared to if you look back in 2021, man, I remember with the low interest rates, there was open houses to get into properties, and it the competition was so crazy from a buyer that I was super discouraged.
23:57
SPEAKER_01: Even myself, I was looking every day and it was like there was like 60 people to get into a property.
24:01
SPEAKER_01: I'm like, this is too.
24:03
SPEAKER_00: You're never gonna get chosen.
24:04
SPEAKER_01: No, no, yeah.
24:05
SPEAKER_00: Yeah, okay.
24:06
SPEAKER_00: Well, you'd think the way that we're thinking, and and right now, values there's less buyers out there does not mean you know, just because people aren't buying does not mean that you shouldn't be buying, you know, and and it's sometimes you'll hear the opposite.
24:19
SPEAKER_00: If everyone's doing this, do the opposite, which around here at Sage Real Estate, everyone's talking about buying, but I get it.
24:26
SPEAKER_00: Once I leave my little office bubble, not everyone thinks the way we think.
24:29
SPEAKER_00: We're we're kind of all in agreement.
24:30
SPEAKER_00: So, okay, in the five in the five plus market, so a couple things that I know.
24:36
SPEAKER_00: Um with with just looking at Long Beach overall, and I know we're we're strictly going to be looking at Alamino's Beach, North Alamino's Beach, but one in four properties is selling short.
24:47
SPEAKER_00: So uh they're taking a loss.
24:48
SPEAKER_00: Okay, so it's 25%.
24:51
SPEAKER_00: If we if we look at the data a little further, uh if you purchased within the last six years, so let's just say you bought an eight unit building within the last six years, there's a 83% chance that you're gonna be selling short also.
25:08
SPEAKER_00: Okay, so the the people that are getting stung are the people who bought within the last five to six years, and that's because the rates are adjusting and they bought at a super low interest rate.
25:18
SPEAKER_00: And so, unless if you were able to raise the income substantially, your net operating income, you're gonna be in a tough spot.
25:25
SPEAKER_00: And it's that tough spot that's creating the opportunities that we're seeing.
25:30
SPEAKER_00: So, what I keep telling people like, look, this is where millionaires are made.
25:35
SPEAKER_00: This podcast is dedicated to teaching people how to build wealth through apartment ownership.
25:39
SPEAKER_00: That's that's what I'm about.
25:40
SPEAKER_00: Okay, so yes, I'm gonna be talking about money, and yes, I'm gonna be talking about building wealth.
25:44
SPEAKER_00: And if you could get your hands on something today, which I believe it's below value, not necessarily in the fourplex level.
25:51
SPEAKER_00: And and and I agree with Nick, 30-year financing is is awesome.
25:55
SPEAKER_00: Uh, 25% is great.
25:57
SPEAKER_00: I love those things.
25:59
SPEAKER_00: And um, but in the five plus market is where I tell people we're buying from the clearance rack.
26:04
SPEAKER_00: And so let's hop into the data.
26:06
SPEAKER_00: Start with either uh area and tell me what you saw.
26:10
SPEAKER_01: Yeah, so starting with North Alamidos Beach five plus, um, so the average price was about 2.16 million.
26:16
SPEAKER_01: Uh price per square foot is$310 per square foot.
26:20
SPEAKER_01: So slightly lower than the four plus market.
26:22
SPEAKER_01: Um, I think where you see a bigger difference is like the cap rate.
26:25
SPEAKER_01: It's about 6.95%, which is pretty good.
26:29
SPEAKER_00: Higher than that's better than average for the city of Long Beach.
26:32
SPEAKER_00: Exactly.
26:32
SPEAKER_01: Yeah.
26:33
SPEAKER_01: Um, same thing with the GRM.
26:34
SPEAKER_01: You're at 9.6.
26:35
SPEAKER_01: And then looking at Alamitos Beach, you kind of see the same trend.
26:38
SPEAKER_01: It's a little bit more of a premium average price about 2.2, call it$2.27 million, um,$392 per square foot, and 6.1 cap and 10.7 uh GRM.
26:51
SPEAKER_01: So you can definitely see the shift from the four plus four unit to the five plus unit, um, you're getting even more yield.
26:56
SPEAKER_01: Um, and again, I think it comes back to what you're saying.
26:59
SPEAKER_01: Um, people that bought that are selling now, they have to sell at a discount because the interest rates are a little bit higher and they're not able to refinance some of the loans that they have with the lower interest rates.
27:09
SPEAKER_00: So it's it's really competitive out there.
27:11
SPEAKER_00: If you put a property on the market, if you put a five-unit property in the market, there's an 89% chance you're going to be doing a price reduction.
27:19
SPEAKER_00: We went back, we went back and we looked, and so on the multiple listing service, um, if you had a price reduction, you have it arrowed down.
27:28
SPEAKER_00: So then we we had our uh our analysts look at it and I said, How many properties so far that are active that are five plus have a price reduction?
27:37
SPEAKER_00: 89%.
27:39
SPEAKER_00: So people are chasing this down, yeah.
27:41
SPEAKER_00: And some people could say now now, Nick, help me answer this because someone's gonna say, Well, if these people are in a tough spot and they're not able to sell and there's price reductions, and some people are selling short, why the hell would I be buying Nick?
27:56
SPEAKER_00: How do you answer that?
27:58
SPEAKER_01: I mean, I think you're buying, so especially with the five plus unit market, right?
28:03
SPEAKER_01: They bought it at a lower interest rate.
28:05
SPEAKER_01: They're trying to refinance, they can't because it's a higher interest rate.
28:08
SPEAKER_01: Um, but you're buying it at that higher interest rate.
28:10
SPEAKER_01: And it kind of goes back to what I said for me personally, like I'm running the numbers with the interest rates how they are right now.
28:16
SPEAKER_01: So if it's seven and a quarter, that's how I'm running my numbers.
28:19
SPEAKER_01: And it is even a bonus that you're now getting a property at a discount lower than what they bought it for five or six years ago.
28:26
SPEAKER_01: Correct.
28:26
SPEAKER_01: So correct.
28:27
SPEAKER_00: Yeah, do we have examples where, you know, look, in some cases, people are selling short and maybe it's 500,000.
28:34
SPEAKER_00: We've seen one scenario and this property's on online.
28:37
SPEAKER_00: It sold for a million dollars less now, today, than it did five years ago.
28:42
SPEAKER_00: And the people who bought it put half a million into it.
28:45
SPEAKER_00: So the building's better, it's got better income.
28:48
SPEAKER_00: It's the improvements are there.
28:49
SPEAKER_00: So I'm just thinking of the person who just hit that home run today who bought, and maybe others, uh others out there are saying, Oh, he bought at the wrong time, but I'm thinking it cannot get better than where we're at now.
29:00
SPEAKER_01: Oh, yeah.
29:01
SPEAKER_01: No, I agree.
29:01
SPEAKER_01: Yeah, the five plus, you're definitely seeing pretty big discounts.
29:04
SPEAKER_00: Yeah.
29:05
SPEAKER_00: So let me hop into cap rates.
29:07
SPEAKER_00: Uh, man, even even the gross rent multiplier.
29:09
SPEAKER_00: So as I'm looking at North Alamitos Beach, we're at cap rate 6.95, which again, that is higher than all of the Long Beach average, which is a plus.
29:17
SPEAKER_00: Uh, we're looking at gross rent multipliers uh under 10, so 9.6, which is really, really good.
29:23
SPEAKER_00: And um there are a lot of rental properties in this area.
29:27
SPEAKER_00: And so, but even when I go up to like call it Alamitos Beach, and you know, we recently sold a property on First Street, cap rate 6.1, which is actually the overall Long Beach cap rate um for all for the for the entire city, and then the GRM is 10.74.
29:43
SPEAKER_00: It's interesting how Alamitos Beach is very representative, and it could be that they just have a lot of apartment sales, very representative of the entire city.
29:51
SPEAKER_00: Yeah, but I would tell you, and you know this, I don't need to tell you, but our listeners need to know this.
29:56
SPEAKER_00: Alamitos Beach, in terms of when we compare its location to everything else, it's a terrific location.
30:03
SPEAKER_00: Um, I will tell you, you know, someone who's listening might say, Okay, but where okay, Juan, you keep talking about all the good stuff, what's the bad stuff?
30:09
SPEAKER_00: So I'm gonna say a few, and and and if I would say in a place like Alamitos Beach and North Alamitos Beach, um parking's gonna be an issue.
30:19
SPEAKER_00: So that's probably the first one.
30:21
SPEAKER_00: Um I think uh we get a little closer to downtown, and so that might bring its issues, like kind of the downtown spreading and some of the issues that they've had kind of spreads across.
30:32
SPEAKER_00: And so there is um, you know, it's not all good.
30:36
SPEAKER_00: What would you say in terms of a like you had to choose a negative?
30:40
SPEAKER_00: I mean, you just bought a property in North Islands Beach.
30:42
SPEAKER_00: What are you dealing with that's kind of bugging you?
30:44
SPEAKER_01: I mean, honestly, there's nothing that's bugging me about the property, but I would say you're right, the parking situation.
30:50
SPEAKER_01: But the property I bought has five parking garages.
30:53
SPEAKER_01: So that's why when I saw that, I was like, I know this market or area has tough um, you know, parking situations.
31:01
SPEAKER_01: So if I'm able to kind of take one step above that and find a property that has parking, so now when I'm renting out my units, you know, I can say, hey, yeah, I have parking, so that's only gonna raise the value of the rent of the property as well.
31:12
SPEAKER_00: So Nick, so as we're looking at the five plus data, what what are you taking from this?
31:19
SPEAKER_00: And and let me ask another question.
31:20
SPEAKER_00: I mean, do you believe that values are gonna continue to go down?
31:27
SPEAKER_00: Uh talk to us about that, talk to us about opportunities that you're seeing, and then maybe interest rates.
31:33
SPEAKER_00: What do you think is gonna happen there?
31:35
SPEAKER_01: I think for the five units, um, I think we're gonna see still more opportunities because, like you said, everyone that bought in the 2020, like in the five past five to six years, we're gonna see those opportunities.
31:47
SPEAKER_01: Um, but the people that are buying today in five years from now, you probably won't see those same opportunities because you know they bought at a discount already.
31:54
SPEAKER_01: So they were already in a good position.
31:56
SPEAKER_01: Yeah.
31:56
SPEAKER_01: So I feel like right now is a good time for that market.
32:00
SPEAKER_01: Um, interest rates, it's so hard to say.
32:04
SPEAKER_01: Um, I thought if you told me in the beginning of the year, I was everyone was thinking like, oh, they're probably gonna, it's gonna get lower, it's gonna get lower, and it completely did the opposite.
32:12
SPEAKER_01: So I just figure with interest rates, it's it's so hard to predict.
32:16
SPEAKER_01: So that's why my key thing is like I always try to tell everybody just you know, analyze it for today.
32:22
SPEAKER_01: Don't try to be like, oh well, numbers don't look good right now, but they'll look better because interest rates are gonna be lower.
32:28
SPEAKER_01: Um, I wouldn't take that gamble, just make it pencil in today, and it's only gonna be a bonus if it goes down later on down the line.
32:37
SPEAKER_01: So yeah.
32:38
SPEAKER_00: And Nick, if it's some someone's listening and they're like, man, I want to work with Nick, you know, he's he's an engineer, he's out there buying.
32:45
SPEAKER_00: Um, would you would you take people by the hand and show them like, hey, this is how I analyze a property, this is how I look at it, this is where um, you know, this is where like I make conservative assumptions.
32:56
SPEAKER_00: Is that something that you do?
32:57
SPEAKER_01: Yeah, absolutely.
32:58
SPEAKER_01: I mean, I started off, you know, first by buying my first quadplex and then going from there.
33:03
SPEAKER_01: And one of the reasons I became an agent was, yeah, I'm buying property for myself, but I kind of figured I would like to show other people to do the same thing um and introduce that opportunity to them.
33:14
SPEAKER_01: So um more than happy to help anyone out who's interested in doing that.
33:18
SPEAKER_00: What would be the best way for someone to get a hold of you?
33:21
SPEAKER_01: Uh so Instagram, it's Nick Cordero or call my phone or text my phone number, 626-678-3546.
33:31
SPEAKER_00: Perfect.
33:31
SPEAKER_00: We'll make sure to have Nick's information um in our notes section.
33:36
SPEAKER_00: Uh interesting fact about Nick is uh him and his wife just had uh twin boys.
33:43
SPEAKER_01: Yeah.
33:44
SPEAKER_00: Um what's something that you want to share with us about that?
33:48
SPEAKER_01: Uh life looks very different these days uh compared to having the boys.
33:53
SPEAKER_01: Um it's challenging, but I mean, uh overall, we can't complain.
33:57
SPEAKER_01: They're healthy, they're growing.
33:59
SPEAKER_01: Um, you know, the mornings when they wake up when they're smiling make up for the nights where we didn't really sleep with them.
34:05
SPEAKER_01: So um so overall it's good, you know, it's just different priorities um these days and a little bit more busy, but um I think we're just adjusting fine and you know, everything's going good with them.
34:17
SPEAKER_01: So really can't complain.
34:19
SPEAKER_00: One thing I wanted to share is uh weeks, maybe days after the the twins were born, uh Nick was texting me about a property that I had listed.
34:28
SPEAKER_00: And and I said, Nick, is your wife okay with you like looking at deals right now and putting an offer?
34:33
SPEAKER_00: She's like, Yeah, yeah, she she understands in the dream.
34:35
SPEAKER_00: And let me ask you, Nick.
34:37
SPEAKER_00: I mean, you're you're young, you said you have 15 doors.
34:40
SPEAKER_00: Clearly, that's not the end.
34:41
SPEAKER_00: You want more.
34:42
SPEAKER_00: You would have had an additional five if we've had that deal not gotten sideways, and we were close, real close.
34:48
SPEAKER_00: And it was unfortunate that that didn't work out.
34:50
SPEAKER_00: But what is your goal with owning real estate?
34:53
SPEAKER_01: Um, I think it's just generational wealth.
34:56
SPEAKER_01: You know, I come, at least my immediate family, no one owns real estate.
35:00
SPEAKER_01: So um, I feel like I want to leave a legacy, a legacy behind for my you know, future kids.
35:06
SPEAKER_01: Um, and I think you know it's a great investment.
35:09
SPEAKER_01: Um, you know, I like stocks, but you can't really control stocks compared to real estate.
35:13
SPEAKER_01: You can kind of control that asset.
35:15
SPEAKER_01: And if you buy it at a you know a good price, you can add value to it and increase that asset.
35:20
SPEAKER_01: And from what I've seen since I bought in 2019, um, it was a great decision.
35:25
SPEAKER_01: I pulled money out of my 401k for my first property because I had to put$50,000 down, another$50,000 to do renovations.
35:34
SPEAKER_01: So in order to get that, I had to pull$50,000 out of my 401k to do that.
35:38
SPEAKER_01: And looking back at that, uh some people might be like, oh, well, why do you pull out of your 401k?
35:44
SPEAKER_01: You're you're not gonna get as much return.
35:45
SPEAKER_01: But if you compare that to the return I've gotten on that property and what the value of that property is now, it's a no-brainer that you know real estate was the right move.
35:54
SPEAKER_00: So have you ever said or thought I should have not bought that property?
35:59
SPEAKER_00: No.
35:59
SPEAKER_00: You've never thought that once.
36:00
SPEAKER_01: Yeah.
36:01
SPEAKER_01: And in the first time, it's crazy because I mean, it's your first property, it's a big purchase.
36:05
SPEAKER_01: I was nervous, I was getting like cold fee.
36:07
SPEAKER_01: I was like, I don't know, maybe, maybe I shouldn't do this.
36:10
SPEAKER_01: Maybe it's too big of a purchase.
36:12
SPEAKER_01: But looking back now, I was like, oh no, it's it was a one of the best decisions.
36:17
SPEAKER_01: And that kind of what created that snowball effect, where pretty much every year after that, um, plus some gaps in between I bought another property almost every year.
36:26
SPEAKER_00: You said that you were the first in your family to start investing.
36:30
SPEAKER_00: Um does your family think you're crazy, or like why does Nick keep doing that?
36:36
SPEAKER_00: Like, like he should stop.
36:37
SPEAKER_00: Someone talked to him, he's making a mistake, he's gonna lose it all.
36:40
SPEAKER_00: Like, I'd like I'm just wondering, because I think that some people who may listen to us may have to deal with that at home.
36:47
SPEAKER_00: Like, are you dealing with that?
36:48
SPEAKER_00: Not with your wife.
36:49
SPEAKER_00: I think she believes in what you're doing, but like brothers, siblings, parents, like, are oh yeah.
36:54
SPEAKER_01: You should have seen my mom's face when she saw my first property.
36:57
SPEAKER_01: Okay.
36:57
SPEAKER_01: She was like, What are you doing?
36:59
SPEAKER_01: She's like, Why are you doing this?
37:01
SPEAKER_01: Because it needed a lot of work.
37:02
SPEAKER_01: I need to the whole plumbing needs to be replaced, all the electrical needs to be replaced, the units need to be a lot of work.
37:08
SPEAKER_01: And she was scared.
37:09
SPEAKER_01: She was just worried for me.
37:10
SPEAKER_01: You know, that that's just you know, mother nature like worried for your son.
37:14
SPEAKER_01: So um, but then after she saw what I did with it, she started to build more confidence.
37:19
SPEAKER_01: But even then, the next property, she was just a little bit like more hesitant, not as scared, but she was like, Oh, what?
37:24
SPEAKER_01: Another one?
37:25
SPEAKER_01: Why are you gonna do that?
37:26
SPEAKER_01: Like, you know what?
37:26
SPEAKER_01: And then, but eventually, if you talk to her now, she will be like, you know what?
37:30
SPEAKER_01: Actually, I trust whatever decisions and whatever you're thinking, I trust you.
37:34
SPEAKER_01: And then same thing for my wife, she's super supportive.
37:37
SPEAKER_01: So that's why, even though we had the twins, like you said, we were close to closing the 45 unit.
37:41
SPEAKER_01: Yeah, and we were talking about like, all right, we have twins now, we gotta be more mindful of the money.
37:45
SPEAKER_01: And I'm like, Yeah, but we still, you know, I still want to build something for them.
37:48
SPEAKER_01: Just because I have twins now doesn't mean I'm stopping.
37:51
SPEAKER_01: Uh, if anything, I'm being a little bit more conservative with what I want to buy, but I still am gonna continue to buy.
37:57
SPEAKER_00: Yeah.
37:58
SPEAKER_00: So if you're someone who's listening and maybe you're not getting the support from your family or your friends, I would say, and and if you're near our area, I'm gonna give you a few things.
38:09
SPEAKER_00: Uh, one Saturday a month, we host a meetup here at the office.
38:14
SPEAKER_00: It's free.
38:15
SPEAKER_00: We're not gonna sell you anything, we're not gonna bombard you with spam emails.
38:19
SPEAKER_00: You come, you learn, you bring your questions, but more importantly, um, you're around people that think the way that you either want to think or you're around people that are risk takers, they're investors, they're entrepreneurs, they're housing providers, and uh that's who you surround yourself with, versus uh the naysayers are like, oh, this is the bad time to do it.
38:41
SPEAKER_00: So I would say our what I call our own more doors uh monthly meetup.
38:46
SPEAKER_00: So we have one this coming Saturday, but once a month I have it.
38:51
SPEAKER_00: Um once every year, uh we do a investor summit, and that this one's gonna be February 11th, 2027.
39:00
SPEAKER_00: And so that's our next one that's planned.
39:02
SPEAKER_00: And so we're hosting events, and so hopefully that we could get you out of a situation where maybe you're not getting the right support.
39:09
SPEAKER_00: We're gonna make sure you get the right support here.
39:11
SPEAKER_00: And you know, you could always ask the person next to you that you're sitting with and what brings you here, and do you own anything?
39:16
SPEAKER_00: And and they're gonna open up and they're gonna tell you what they own.
39:18
SPEAKER_00: And some of some people are getting started, other people own 30, 50 properties, and it's pretty amazing.
39:24
SPEAKER_00: So, some some some events that you guys are welcome to to join us on.
39:28
SPEAKER_00: Nick, I'm gonna give you the final say.
39:31
SPEAKER_01: Yeah, to add to that, um, those events are great.
39:33
SPEAKER_01: I mean, not only do you come out of it learning something new, but you also meet other people.
39:39
SPEAKER_01: And me personally, every time I leave like a meetup, I always am inspired and even more motivated because I'm talking to other people that are doing different things.
39:49
SPEAKER_01: Um, for example, like my property in Big Bear.
39:52
SPEAKER_01: The reason why I got that property is because I went to a conference meetup.
39:56
SPEAKER_01: Someone told me, Hey, yeah, I actually have an Airbnb in Big Bear.
39:59
SPEAKER_01: And I was like, Oh, tell me more.
40:01
SPEAKER_01: Three or four months later, I bought a short-term rental in Big Bear.
40:04
SPEAKER_00: That one or a different one?
40:06
SPEAKER_01: No, not that one that he was talking about, but in general, just I bought in Big Bear.
40:09
SPEAKER_01: Like he was like, Oh, I own a cabin in Big Bear.
40:11
SPEAKER_01: These are the numbers.
40:11
SPEAKER_01: And I was like, Okay, I actually have been thinking about it.
40:14
SPEAKER_01: I just never done it until now I'm talking to you and now it pushed me forward to be like, all right, now let me actually take action and look into it.
40:22
SPEAKER_01: So that's how I got my Airbnb and Big Bear.
40:25
SPEAKER_00: Awesome.
40:26
SPEAKER_00: Uh, folks, if you guys liked uh Nick on, please let me know in the comments.
40:30
SPEAKER_00: We will have him back.
40:31
SPEAKER_00: He is part of Sage Real Estate.
40:33
SPEAKER_00: If you want to uh reach out to him, we're gonna have his information down below.
40:37
SPEAKER_00: Nick, thank you so much for uh doing this deep dive for joining us today.
40:41
SPEAKER_00: Good luck with the twins, and we'll see you next time.
40:43
SPEAKER_01: All right, appreciate it.
40:44
SPEAKER_01: Thank you.