As the Investing in San Diego Real Estate opening page suggested, there are really only two reasons the average person has missed out on the profits and safety inherent to investing in San Diego real estate: price and knowledge.
Price
First and foremost in most people’s minds, the astronomical prices have prevented all but the wealthiest from being able to purchase investment property in San Diego. One needed to have a tremendous cash reserve (or a long history of property ownership and equity appreciation) just to get in the door. Even if you did have the cash to qualify for a down payment, it was nearly impossible to purchase a property as a Small-Cap investor that would cash flow. The rents were just not great enough to match the cost of ownership. Of course that fact, along with the more widely reported mortgage crisis, led to the housing bubble.
Unfortunately for the economy (although it has been a great benefit to investors), the natural movement of the real estate cycle, caused in large part by the crash of that same bubble, has reduced most of the pricing roadblock. The benefit has been two-fold: prices in San Diego have dropped to the pre-bubble levels of 2002 and thanks to rental demand, the cash flow opportunity has returned to 1992 levels. These two factors alone put San Diego back in the forefront of real estate investment opportunities.
Knowledge
The second reason for missing out on San Diego real estate investments continues to be a much greater obstacle for the average person, derailing many potential investors before they ever really get started. It’s more than a lack of knowledge really; it’s a lack of framework. There is very little assistance or advice the Small-Cap investor can access. This is in large part due to the way real estate investing has been viewed… or more accurately: the way real estate investing has not been viewed and practiced in the same way we do other investments.
CQ Financial Group is changing that. My background is the stock and options industries and I understand how to analyze and compare various investment strategies. The tools required to do so have not existed or at least been available to the average investor. We are creating them right here… for you.
Action
The articles in this series are designed to show you the proper way to value investment properties, how to compare various opportunities using tools like Drop Amount and Arbitrage. You’ll discover how to make money, or at least prevent yourself from losing money, rehabbing properties. It is a wealth of information and like all educations, the best place to start is at the beginning. Read Real Estate Investing: Introduction first. Gain some insight into what the problems are and how they came to be so that you may fully understand the solutions. If you have any questions you are free to comment on the articles, email or call us. We are not just writing theories and creating books… we are active right now; advising clients on the best real estate investing San Diego has to offer. The time is right and the information is here; all you have to do is ACT.
Filed under: INVESTORS , knowledge, price, Real Estate Investing, San Diego
