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#4 How Much Can a Landlord Raise Rents? (2024 Update) · Own More Doors

• 0:00
  SPEAKER_00: What's up, everyone?
• 0:01
  SPEAKER_00: Juan Weezer here, president of Sage Real Estate with another podcast, Own More Doors.
• 0:06
  SPEAKER_00: Thank you guys for tuning in.
• 0:08
  SPEAKER_00: Just a quick announcement.
• 0:09
  SPEAKER_00: Um, we we we do the podcast obviously on all the podcast platforms.
• 0:16
  SPEAKER_00: So make sure to um subscribe, make sure to comment, make sure to like this one, make sure to download.
• 0:22
  SPEAKER_00: So if you're new to us, um I'm gonna give you some insight on on who I am, what we do, and what we're trying to accomplish here with the podcast of Own More Doors.
• 0:31
  SPEAKER_00: Um, we also showcase this on YouTube.
• 0:34
  SPEAKER_00: YouTube, we have a much larger following forward slash SageReal Estate.
• 0:39
  SPEAKER_00: So YouTube.com forward slash Sage Real Estate.
• 0:42
  SPEAKER_00: Thank you so much for all of our new podcast listeners, and certainly thank you so much for all of our YouTube subscribers.
• 0:48
  SPEAKER_00: We love your support, we love your comments, and thank you guys so much for for listening, tuning in.
• 0:55
  SPEAKER_00: And uh, we just appreciate you guys so much.
• 0:57
  SPEAKER_00: And believe me, I read, I personally read the comments.
• 1:00
  SPEAKER_00: Thank you guys for everyone who reaches out.
• 1:02
  SPEAKER_00: Um, any suggestions on topics that you want us to cover?
• 1:05
  SPEAKER_00: Today I'm gonna cover a topic that's critically, critically important because every 12 months this moves.
• 1:10
  SPEAKER_00: And so here at Sage Real Estate, we're dedicated to mom and pop independent apartment owners.
• 1:15
  SPEAKER_00: Our channel is dedicated to teaching people how to build wealth because we believe that anyone has the ability to do so through investing in multifamily and uh properties.
• 1:26
  SPEAKER_00: And so I am uh listen, I talk the talk, I walk the walk.
• 1:32
  SPEAKER_00: I I come, I'm an immigrant.
• 1:34
  SPEAKER_00: I grew up picking garlic as a nine-year-old kid with my family in the Central Valley Fields in the hot summer because that's what we had to do to help survive.
• 1:43
  SPEAKER_00: And everyone had a pitch in.
• 1:45
  SPEAKER_00: I come from a family of eight.
• 1:47
  SPEAKER_00: And so I've I'm uh I'm living the American dream.
• 1:52
  SPEAKER_00: I had a chance to study, I had a chance to go to college, I had a chance to get a degree, and I had a chance to meet a lot of mentors, one specifically, Mr.
• 2:00
  SPEAKER_00: Mark Milan, who taught me that anyone could build well through real estate.
• 2:04
  SPEAKER_00: And so I'm an example of that.
• 2:06
  SPEAKER_00: Um I tell people that I am a housing provider first, a real estate investor first, and a broker second.
• 2:15
  SPEAKER_00: And so I think, and I have the mindset of a housing provider.
• 2:19
  SPEAKER_00: Um, a lot of real estate brokers, all they know is um they know the commission going in and then they know the commission going out, but they don't know that 10, 15 year spread of owning a property, dealing with tenants, dealing with maintenance insurance costs that are rising.
• 2:33
  SPEAKER_00: And I'll get into that as well.
• 2:34
  SPEAKER_00: And so um, it's I think I bring a unique perspective into anyone who's thinking about, well, how do you do it?
• 2:40
  SPEAKER_00: Can anyone do it?
• 2:41
  SPEAKER_00: Yeah, yeah.
• 2:42
  SPEAKER_00: My parents, Spanish speaking only, uh, they only had a sixth grade education.
• 2:46
  SPEAKER_00: And so if I could do it, guys, you could do it too.
• 2:49
  SPEAKER_00: So um, how much can a landlord landlord raise the rent?
• 2:53
  SPEAKER_00: Is a topic that we cover every single year.
• 2:55
  SPEAKER_00: It's one of our best performing videos um for this specific reason, is it's confusing.
• 3:00
  SPEAKER_00: And people want to make sure that they're doing the right thing.
• 3:02
  SPEAKER_00: So um, the way that the law was written, AB 1482, uh, 2019.
• 3:08
  SPEAKER_00: So this was all new to us.
• 3:09
  SPEAKER_00: We didn't have to deal with this in the past.
• 3:11
  SPEAKER_00: Uh, and again, this is all of California.
• 3:14
  SPEAKER_00: Um, there are going to be some cities that are uh exempt because they have their own rent control.
• 3:18
  SPEAKER_00: I'll talk about those in a little bit.
• 3:19
  SPEAKER_00: Uh, but the way that the law was written was uh the government said housing providers are able to raise the rent 5% plus CPI.
• 3:27
  SPEAKER_00: CPI is the consumer price index, and um, there is a website that the government provides us that we're able to find that.
• 3:34
  SPEAKER_00: And it does get a little confusing because the CPI, because there's nationwide CPI, there's statewide CPI, there's county city CPI.
• 3:44
  SPEAKER_00: And so today a lot of the show will be around Los Angeles because that's where I'm located here in Long Beach.
• 3:50
  SPEAKER_00: But I will show you, I will show you that if you're in Los Gatos, if you're in San Diego, Bakersfield, if you're in Lamore, shout out to my hometown of Lamore.
• 4:00
  SPEAKER_00: Um, there's data.
• 4:02
  SPEAKER_00: I'm gonna guide you guys to where that data is at, and then you could come up with the CPI.
• 4:06
  SPEAKER_00: So um in in LA specifically, there are certain cities that are exempt.
• 4:14
  SPEAKER_00: So let's get into the cities that have their own citywide rent control.
• 4:20
  SPEAKER_00: And so what's this mean?
• 4:20
  SPEAKER_00: So it gets confusing, right?
• 4:21
  SPEAKER_00: There's statewide rent control, there's city rent control.
• 4:25
  SPEAKER_00: Juan, what's that what's that mean?
• 4:27
  SPEAKER_00: It means that these cities, um, either before the state law or after the state law decided that they wanted more control over what rents could be raised by.
• 4:37
  SPEAKER_00: And so certain cities, and probably the biggest city of them all, is LA City.
• 4:41
  SPEAKER_00: LA City has really, really strict rent control laws.
• 4:45
  SPEAKER_00: And it makes it difficult.
• 4:46
  SPEAKER_00: It makes it difficult, in my opinion, if you're a a mom and pop independent apartment owner.
• 4:50
  SPEAKER_00: It's it's very tough in that area.
• 4:53
  SPEAKER_00: Santa Monica, um, Beverly Hills, Falm Springs, Inglewood, um uh Garden, San Diego, Sacramento, Baldwin Park, uh Hayward, Berkeley, Thousand Oaks, City of Commerce, Bell Gardens, and Santa Ana.
• 5:08
  SPEAKER_00: These are uh Bell Gardens, Santa Ana recently passed their own.
• 5:12
  SPEAKER_00: And so today's video does if you're in one of those cities, and I just named a few.
• 5:17
  SPEAKER_00: There's there's uh, you know, I don't know, like 17 cities in California that have their own.
• 5:21
  SPEAKER_00: So if you're in those cities, this video won't apply to you, and you're gonna have to specifically go check out that city uh that you might own in uh to figure out what's allowed there.
• 5:31
  SPEAKER_00: And so there's a few other exemptions too.
• 5:34
  SPEAKER_00: Um, we do get a lot of calls from people who will say, Hey, um uh I own this type of property.
• 5:42
  SPEAKER_00: Can I raise the rent?
• 5:43
  SPEAKER_00: And so here's what I want you guys to know is um if you have a single family home, just a house or a condominium, um, you're not subject to rent control.
• 5:54
  SPEAKER_00: Meaning uh you are able to raise the rents as you think that you can.
• 5:59
  SPEAKER_00: Now, ultimately, what I'll tell you is um, so yes, so there's no limit.
• 6:04
  SPEAKER_00: You could raise it as much as you you want.
• 6:06
  SPEAKER_00: Um, but really the market will tell you what you could raise it.
• 6:10
  SPEAKER_00: And so typically I'll tell people um if you own a house or a condominium, the best thing to do is look at similar properties, compare them to similar properties.
• 6:19
  SPEAKER_00: So if you have a three-bed two bath, compare it to a three-bed two bath in your area, not in the better area, not in an inferior area, in your area, very, very tight circle.
• 6:29
  SPEAKER_00: Call around.
• 6:30
  SPEAKER_00: Um, I look at Zillow.
• 6:31
  SPEAKER_00: If Zillow has, yes, you could look at for zale for sale on Zillow, but you could also look for rents.
• 6:36
  SPEAKER_00: And on the rents, you'll get a good idea on what rents could be.
• 6:40
  SPEAKER_00: And so that that's for single-family homes and condominiums.
• 6:43
  SPEAKER_00: Also, another exemption is um if you rent in a property that was built within the last 15 years, um, that is not going to be covered by rent control.
• 6:54
  SPEAKER_00: And you might be wondering why.
• 6:56
  SPEAKER_00: Well, the government, we don't have enough housing here in California.
• 6:59
  SPEAKER_00: In fact, that's the reason why people invest in housing is because we don't have enough and there's so much demand that um that's where wealth is being built.
• 7:08
  SPEAKER_00: So what ends up happening is if you what the government wants is they want to incentivize the developer to go build, say, like a 20-unit building or an 80-unit building.
• 7:19
  SPEAKER_00: And what they'll say is, hey, um for the first 15 years, you don't have to worry about the rent control laws.
• 7:27
  SPEAKER_00: And that incentivizes the developer to go ahead and build it.
• 7:31
  SPEAKER_00: Otherwise, there wouldn't be any new buildings.
• 7:34
  SPEAKER_00: It doesn't make financial sense to build a new building in California because it's so expensive.
• 7:39
  SPEAKER_00: It looks like um, well, it doesn't look like easy money, but it looks like it makes sense.
• 7:44
  SPEAKER_00: But when you look at the numbers, you're like, man, there's a lot of risk.
• 7:48
  SPEAKER_00: You could lose it all, and there's a lot of pressures.
• 7:52
  SPEAKER_00: And on top of that, there's not a whole lot of money at the end.
• 7:55
  SPEAKER_00: And so for anyone who's a developer, I think you probably agree with me.
• 7:58
  SPEAKER_00: And so, anyhow, because of that, they want to make it a little easier for the developer.
• 8:04
  SPEAKER_00: They won't have that cap.
• 8:05
  SPEAKER_00: So those are just a few exemptions.
• 8:07
  SPEAKER_00: Dorms and a few other things are exempted as well, but those aren't as popular.
• 8:11
  SPEAKER_00: Okay, so when you're trying to figure out how much you could raise the rent, um, and and the reason why I'm doing this video today, um, May 17th, is because the the government wants us to use the CPI for the month of April.
• 8:26
  SPEAKER_00: But in the month of April, it hasn't been announced, right?
• 8:29
  SPEAKER_00: Because they need to they need to track what um the cost that are increasing in just about everything bread, eggs, fuel, et cetera.
• 8:38
  SPEAKER_00: And they track everything.
• 8:39
  SPEAKER_00: And so they released it May 15th of 2024.
• 8:44
  SPEAKER_00: You guys know that here at Sage Real Estate, we try to keep you uh informed, up to date, so that as a housing provider and even as a tenant, you kind of know what can and can't be done.
• 8:55
  SPEAKER_00: I mean, so critically important that that you know your rights.
• 8:59
  SPEAKER_00: Sometimes I get calls from owners and they've raised the rents higher than they're allowed to.
• 9:04
  SPEAKER_00: And I'm like, you know, you weren't supposed to do that.
• 9:06
  SPEAKER_00: And and sometimes they legitimately didn't know, and sometimes maybe they legitimately didn't care.
• 9:12
  SPEAKER_00: And so it it's important that you play by the rules.
• 9:15
  SPEAKER_00: So, you know, so that these these are state laws.
• 9:18
  SPEAKER_00: One thing that's very interesting, um, I find it interesting.
• 9:23
  SPEAKER_00: I find it interesting that if um fuel cost goes up, it's not a problem.
• 9:27
  SPEAKER_00: Uh if insurance goes up.
• 9:29
  SPEAKER_00: And so right now, this week I had to deal with a lot of calls from my clients and they're telling me, hey Juan, um, can you refer me to a new insurance person?
• 9:38
  SPEAKER_00: They are cutting off my insurance.
• 9:39
  SPEAKER_00: This has been going on in all most like people who own multifamily properties, this is happening now, but also people who own single-family homes, then everyone's calling me.
• 9:50
  SPEAKER_00: And so it's interesting that, like, okay, if McDonald's wants to raise the price of their fries, they can.
• 9:56
  SPEAKER_00: Uh, if Target wants to raise the prices of some of their items, they can.
• 10:00
  SPEAKER_00: If Costco wants to raise their prices, they can.
• 10:02
  SPEAKER_00: If um, you know, water goes up, gas goes up, utilities go up, everything could go up.
• 10:08
  SPEAKER_00: If you're if if you're in the service business, a contractor, if you're a doctor, you could raise your prices if you want, but not you.
• 10:16
  SPEAKER_00: Not you, the housing provider.
• 10:18
  SPEAKER_00: Not you.
• 10:19
  SPEAKER_00: You they almost make it seem, no, they clearly make it seem that you, the housing provider, are public enemy number one.
• 10:26
  SPEAKER_00: You're on their crosshairs, and we're gonna limit you because you're the one who's responsible for the homelessness.
• 10:33
  SPEAKER_00: It's it's it's it's weird how they put everything on the back of the housing provider.
• 10:39
  SPEAKER_00: It's like, really?
• 10:39
  SPEAKER_00: It's it's our fault.
• 10:41
  SPEAKER_00: I mean, are we the ones passing laws?
• 10:43
  SPEAKER_00: Are we the ones preventing people from building more housing, which we clearly need?
• 10:47
  SPEAKER_00: No, we're not.
• 10:48
  SPEAKER_00: But somehow we're we're the victims.
• 10:49
  SPEAKER_00: And so it's just interesting that our industry, and we're very much different than other industries.
• 10:56
  SPEAKER_00: Um, there's caps and there's limits.
• 10:59
  SPEAKER_00: And so um I don't know necessarily that this is in the benefit of the tenants.
• 11:05
  SPEAKER_00: And let me give you guys a perfect example.
• 11:07
  SPEAKER_00: Um, traditionally, and you know, this this might sound like it uh it's not the case, but I deal with a lot of rental property owners, and typically they're independent mom and pop.
• 11:19
  SPEAKER_00: Okay, they're not these large corporations, they're not.
• 11:21
  SPEAKER_00: The majority of them are not.
• 11:24
  SPEAKER_00: And when I talk to them, they've not raised rents in 10 years.
• 11:29
  SPEAKER_00: And then what happened was in 2019, they passed this uh statewide rent control, and now they're they have no choice but to start raising the rents now every year.
• 11:40
  SPEAKER_00: And so I I think that they disrupted something that was happening.
• 11:44
  SPEAKER_00: Um because now an owner is gonna say, well, because of this new law, I now have to raise the rent.
• 11:51
  SPEAKER_00: Because of this new law, I have to do this.
• 11:54
  SPEAKER_00: Um, for some people who don't know, the um there's a direct relationship with the amount of income that your property brings in and what the value is worth.
• 12:01
  SPEAKER_00: And so the more income that you bring in in rental um uh rent, then the higher the value of the property.
• 12:07
  SPEAKER_00: It's it's a direct result.
• 12:08
  SPEAKER_00: So if you want a higher producing property, well, you need to bring it, bring in the income.
• 12:13
  SPEAKER_00: And so sometimes for someone who hasn't raised rents, it really affects the value and tremendously, like by hundreds of thousands of dollars, because ultimately the buyer, the buyer who's gonna buy the building is yeah, they're buying the asset, the units, the bedroom count, the bathroom count, their square footage.
• 12:32
  SPEAKER_00: Yeah, they're buying that.
• 12:33
  SPEAKER_00: But in their mind, they're really buying the income stream.
• 12:38
  SPEAKER_00: And when there's limits, as there is today because of state law, um, it prevents, it it really caps the potential of the property and caps the price of the property.
• 12:50
  SPEAKER_00: So let's get back to the CPI.
• 12:52
  SPEAKER_00: Uh, it's very important that people know about the uh Bureau of Labor Statistics.
• 12:57
  SPEAKER_00: This is BLS.gov.
• 12:59
  SPEAKER_00: Um for those of you who who struggle with that website, so what I do is I go BLS CPI Los Angeles.
• 13:09
  SPEAKER_00: Um so I recommend that you go BLS, CPI Bakersfield, BLS CPI San Diego, and go find the CPI for the month of April, because the month of April is the CPI that they want us to use.
• 13:22
  SPEAKER_00: So when I did that for Los Angeles this week, um, because it was announced, it said 3.9.
• 13:30
  SPEAKER_00: Okay, so we know that we could raise rents by 5% plus 3.9.
• 13:35
  SPEAKER_00: And so now moving forward, you could raise the rent by 8.9%.
• 13:41
  SPEAKER_00: Um, inflation is still high because last year, um, the prior 12 months, the allowable increase was 8.8.
• 13:49
  SPEAKER_00: And so you are allowed to raise rents just a little bit more, not much, uh, because now it's 8.9.
• 13:55
  SPEAKER_00: And so this is for most of Los Angeles.
• 13:57
  SPEAKER_00: Again, if you're in Santa Monica, LA City, Inglewood, Gardena, Belle Gardens, this doesn't apply to you.
• 14:04
  SPEAKER_00: You're you're you're capped at 4%, okay?
• 14:08
  SPEAKER_00: Because I know some people have been reaching out.
• 14:09
  SPEAKER_00: If you're LA City, that's uh that's playing under a different set of rules, not the statewide set of rules.
• 14:14
  SPEAKER_00: And so again, just a reminder, today's video is the statewide rent control.
• 14:18
  SPEAKER_00: And so um in the LA area, so we're talking Anaheim, uh, we're talking you know, Burbank, Long Beach, Lakewood, Bellflower, this type of area, owners moving forward can raise rents by 8.9.
• 14:32
  SPEAKER_00: Doesn't mean you have to.
• 14:34
  SPEAKER_00: It does not mean that you have to raise by 8.9.
• 14:37
  SPEAKER_00: Uh, you can, and I've seen the strategy.
• 14:39
  SPEAKER_00: Sometimes people say, well, for the first six months, I'll raise it half of that.
• 14:44
  SPEAKER_00: And then for the following six months, I'll do uh I'll raise it so that you get to the 8.9.
• 14:49
  SPEAKER_00: So you can break it up.
• 14:50
  SPEAKER_00: I don't suggest you do that.
• 14:51
  SPEAKER_00: I don't, I don't like giving notice more than um once a year.
• 14:55
  SPEAKER_00: And I and again, I don't give notice all the time.
• 14:57
  SPEAKER_00: I mean, that's this is just an option.
• 14:59
  SPEAKER_00: This is if um if you elect to, this is what you're allowed to.
• 15:03
  SPEAKER_00: So it's it's not like I'm telling people raise it by this amount.
• 15:06
  SPEAKER_00: I'm saying this is what the right uh the state law is saying that you can.
• 15:09
  SPEAKER_00: And again, you can break it up within a 12-month period.
• 15:13
  SPEAKER_00: Okay, so if you if you are someone who is thinking about selling, maybe you're frustrated with uh it's it's just getting tougher and tougher to manage units.
• 15:22
  SPEAKER_00: I mean, now you have to be involved at the political level, you have to know what's coming down at the city council level, state law, all these things are happening.
• 15:30
  SPEAKER_00: It's confusing, it's hard.
• 15:32
  SPEAKER_00: You might have a property manager and they don't always know.
• 15:35
  SPEAKER_00: And so for those of you who are in a situation where you're like, hey, I'm an owner, man, I'm Juan, I'm really getting frustrated with all that's happening here.
• 15:45
  SPEAKER_00: It's just, it's it's too hard for me.
• 15:47
  SPEAKER_00: I can't collect rents in some cases, I can't do an eviction in some cases.
• 15:50
  SPEAKER_00: The tenants don't have to go.
• 15:51
  SPEAKER_00: They've been there for a year without paying.
• 15:52
  SPEAKER_00: A lot of things are happening.
• 15:54
  SPEAKER_00: Um, in my opinion, the housing provider is not public enemy number one.
• 15:59
  SPEAKER_00: The housing provider should be looked at much differently.
• 16:01
  SPEAKER_00: The housing provider is providing housing, and there should be, they should be put on a different type of platform than you're to blame, which is the attitude of um so many people.
• 16:13
  SPEAKER_00: You're to blame.
• 16:14
  SPEAKER_00: Not really.
• 16:15
  SPEAKER_00: And I don't believe that for a second.
• 16:16
  SPEAKER_00: And I and I don't like it, quite frankly.
• 16:18
  SPEAKER_00: But if you're someone who says, I'm thinking that I'm done, reach out to me.
• 16:24
  SPEAKER_00: Uh, especially in a situation where maybe a tenant is moving out on their own.
• 16:28
  SPEAKER_00: Um, I I strongly encourage that we leave one or more than more than one unit vacant.
• 16:34
  SPEAKER_00: And I know that that goes against your principles.
• 16:36
  SPEAKER_00: I know you don't want to leave a property vacant because you want to be able to produce income quickly on it.
• 16:42
  SPEAKER_00: I understand that.
• 16:43
  SPEAKER_00: But just know this.
• 16:45
  SPEAKER_00: If you're thinking about selling, and if we could deliver a unit vacant because someone has elected to move out, that's a huge plus because a couple of things happen.
• 16:55
  SPEAKER_00: We could sell it for more, we could sell it quicker.
• 16:58
  SPEAKER_00: There's gonna be more offers.
• 16:59
  SPEAKER_00: And so what happens when there's more offers?
• 17:01
  SPEAKER_00: There's more offers, it puts you in this competitive advantage.
• 17:04
  SPEAKER_00: And so I know you as the owner say, well, let me fill it in quickly.
• 17:07
  SPEAKER_00: Don't do that.
• 17:08
  SPEAKER_00: Don't do that.
• 17:09
  SPEAKER_00: Don't do that.
• 17:09
  SPEAKER_00: You're gonna do yourself a disservice because you're gonna meet with me.
• 17:12
  SPEAKER_00: I'm gonna look at your rent, I'm gonna tell you your rents are low.
• 17:15
  SPEAKER_00: And you're gonna look at me and say, Yeah, I know, but that's the benefit for the new buyer.
• 17:19
  SPEAKER_00: No, it's not.
• 17:20
  SPEAKER_00: It's not a benefit for the new buyer.
• 17:22
  SPEAKER_00: The new, the, the, the new buyer has to play by the rent control laws.
• 17:26
  SPEAKER_00: They just can't raise the rents like they used to.
• 17:28
  SPEAKER_00: Those long, long are those, those days are gone.
• 17:31
  SPEAKER_00: Those days are gone.
• 17:32
  SPEAKER_00: So when you're an owner, sometimes take yourself out of the position of the I'm the owner.
• 17:38
  SPEAKER_00: Put yourself as is I'm the new buyer.
• 17:41
  SPEAKER_00: And guess what?
• 17:41
  SPEAKER_00: That new buyer, that new buyer in most cases has to put 25% down in larger buildings, 50, 60, 70% down.
• 17:51
  SPEAKER_00: This is five plus buildings.
• 17:53
  SPEAKER_00: Okay.
• 17:54
  SPEAKER_00: Uh, interest rates are in the sevens, seven and a half, uh, depending on how many doors, it could be 6.25, but regardless, expensive, except expensive interest rate.
• 18:04
  SPEAKER_00: And we need to put ourselves in the position of the buyer.
• 18:07
  SPEAKER_00: The buyer's gonna step into this building, the buyer is gonna have higher cost, higher insurance, higher property taxes, and you're low rents.
• 18:15
  SPEAKER_00: That's not a winning equation if you want to sell a property.
• 18:18
  SPEAKER_00: So critically important that um, if you're just kicking the tires of thinking that I want to sell, please reach out to me.
• 18:25
  SPEAKER_00: Okay, and let's have that discussion because this is a strategy play.
• 18:27
  SPEAKER_00: This is not easy.
• 18:28
  SPEAKER_00: If you want uh offers uh at the price and terms that are acceptable to you, there needs to be homework done behind.
• 18:35
  SPEAKER_00: Okay.
• 18:36
  SPEAKER_00: And sometimes it just needs having someone like me bouncing off ideas uh on saying this is how we got to position your property so that ultimately we get the offers um that are acceptable to you.
• 18:47
  SPEAKER_00: If you're a tenant and you're listening to this, and I said this message last time, um try to do everything in your power to save and to someday buy a property.
• 18:59
  SPEAKER_00: And I say this because listen, I I opened up the video telling you a little bit about my background.
• 19:06
  SPEAKER_00: Uh, I'm an immigrant.
• 19:07
  SPEAKER_00: My family, my family and I uh crossed the border in Mexico when I was four.
• 19:11
  SPEAKER_00: Okay.
• 19:13
  SPEAKER_00: Uh our first apartment, we lived in the in um in the living room.
• 19:17
  SPEAKER_00: There was 10 of us in the living room, and we shared an apartment with a family of six.
• 19:22
  SPEAKER_00: So there were 16 of us in a two-bedroom.
• 19:24
  SPEAKER_00: We had the living room floor.
• 19:26
  SPEAKER_00: Through the years, uh, my parents worked, they bought a house.
• 19:31
  SPEAKER_00: I saw them build equity through the house, meaning that the house went up in value.
• 19:35
  SPEAKER_00: They made money that they would have never been able to save.
• 19:39
  SPEAKER_00: But the most important thing that I've learned is um rents are never going to stop going up.
• 19:44
  SPEAKER_00: So let me repeat that.
• 19:46
  SPEAKER_00: Rents will never stop going up.
• 19:48
  SPEAKER_00: Okay.
• 19:50
  SPEAKER_00: And so the beauty of, and I'm not saying it's easy, and I'm not saying, but I'm saying that it takes sacrifice to save the money to have a goal to go buy a property.
• 20:01
  SPEAKER_00: And why do I say that?
• 20:02
  SPEAKER_00: When you buy that property, that payment will be higher than your rent.
• 20:06
  SPEAKER_00: I promise you that.
• 20:07
  SPEAKER_00: There's a lot of benefits too.
• 20:09
  SPEAKER_00: There's a lot of tax benefits that that that will help you, that will make that that larger jump in rent come down.
• 20:16
  SPEAKER_00: Okay.
• 20:16
  SPEAKER_00: And the reason why I say that is that if you buy a house, a condominium or duplex, um, you are gonna get 30-year financing.
• 20:25
  SPEAKER_00: And that means that your payment does not change.
• 20:28
  SPEAKER_00: So although the first couple of years it might be really difficult and you got to scrap and and maybe work um an extra job or extra hours or overtime, yeah, that's what it takes.
• 20:40
  SPEAKER_00: That's what it takes.
• 20:41
  SPEAKER_00: That's what it took my parents.
• 20:42
  SPEAKER_00: And again, these are Spanish-speaking parents that are pulling this off.
• 20:46
  SPEAKER_00: So it can be done, but it takes sacrifice and it takes hard work.
• 20:50
  SPEAKER_00: But when you're able to get a 30-year mortgage, you're capping your biggest expense.
• 20:58
  SPEAKER_00: Housing is your biggest expense, you're gonna cap it.
• 21:02
  SPEAKER_00: And I think that's that that's critically important because if you're of the mindset of um, well, I I I can't do it, I don't think I could pull it off.
• 21:12
  SPEAKER_00: Those are limiting beliefs.
• 21:14
  SPEAKER_00: And I want to help you guys get over that.
• 21:16
  SPEAKER_00: It's um yeah, I see a lot of people that we've been able to help that had limiting beliefs, they've reached out and we've been able to coach them through the process of getting started.
• 21:27
  SPEAKER_00: And so I know that it could be done, but the the problem with with with being a tenant is that you're not capping your biggest expense.
• 21:37
  SPEAKER_00: And that you don't know what your rent's gonna be five years from now.
• 21:41
  SPEAKER_00: But like for someone who bought a house this year, they know exactly what their payment's gonna be five, seven years from now.
• 21:47
  SPEAKER_00: And that's what I mean.
• 21:48
  SPEAKER_00: Capping your biggest expense is is critically important.
• 21:50
  SPEAKER_00: So so there you have it.
• 21:52
  SPEAKER_00: I hope you guys enjoyed this um this video, this podcast.
• 21:57
  SPEAKER_00: Uh, you got to learn a little bit about me, kind of what motivates me.
• 22:00
  SPEAKER_00: I do want to educate, I love doing this.
• 22:02
  SPEAKER_00: Uh, make sure to like, comment, and subscribe our YouTube channel, uh Sage Real Estate in Long Beach.
• 22:09
  SPEAKER_00: We also own Sage Trust Mortgage.
• 22:11
  SPEAKER_00: And so if you're someone who's saying, you know what, one, that resonated with me.
• 22:16
  SPEAKER_00: And I'll tell you this: it doesn't cost you any money to find out if you qualify for a loan.
• 22:22
  SPEAKER_00: It doesn't cost you anything.
• 22:24
  SPEAKER_00: Nothing.
• 22:25
  SPEAKER_00: Nothing.
• 22:25
  SPEAKER_00: Doesn't cost you anything.
• 22:26
  SPEAKER_00: So why not find out?
• 22:28
  SPEAKER_00: Why not find out?
• 22:29
  SPEAKER_00: Why not partner up?
• 22:30
  SPEAKER_00: Why not ask your parents to co-sign and uncle to co-sign?
• 22:34
  SPEAKER_00: Why not look into the option of saying, can I become a property owner?
• 22:38
  SPEAKER_00: Okay.
• 22:39
  SPEAKER_00: Is it possible?
• 22:40
  SPEAKER_00: It's worth knowing.
• 22:42
  SPEAKER_00: And again, so Sage Trust Mortgage is our mortgage company, Sage Real Estate is our brokerage company, and that's where we help people buy and sell properties.
• 22:50
  SPEAKER_00: And if you have any questions, please send us a message.
• 22:52
  SPEAKER_00: Uh, make sure that you're checking out uh bls.gov, that's the Bureau of Labor Statistics.gov.
• 22:59
  SPEAKER_00: And make sure that you're checking out the CPI for the month of April in your area.
• 23:04
  SPEAKER_00: In your area, there's there's 26 metropolitan areas in California alone.
• 23:10
  SPEAKER_00: And so what I quoted today, the 3.9, is the CPI for April in the LA area.
• 23:15
  SPEAKER_00: So this covers most of us here moving forward.
• 23:18
  SPEAKER_00: Um, I want to say thank you, and that's all for now.