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To Sell or Not to Sell…That is the Question!

Nov 17, 2016
Being in the Real Estate industry, the number one question I am asked most frequently is, “Is this a good time to buy/sell?” Being the guy that wants to be your trusted resource and one you can lean on to make your Real Estate decisions, I struggle with giving this question an answer a lot!

So here is the mantra I constantly refer to when it comes to questions and/or scenarios like this: “Don’t try to time the market, let the market time you!” Its that simple. If it makes financial sense to buy, then buy. If it makes financial sense to sell, then sell! But for those that want more from me than this high-level advise, let’s dive in further…

et’s talk about the market today.  As you can tell from the table to the left, we’ve had some pretty great growth over the last handful of years!  So if you bought property locally in 2011, the market’s timing was in your favor.  In fact, if you purchased anytime in the last six years you’re sitting in a great position!  But where are we headed?  That’s the million dollar question, and the truth is, nobody knows for sure.  The only thing we can do is to study the past and present and make our best educated guesses.  Which is where I am currently sitting with a few of my properties within my portfolio today.  They have appreciated along with the rest of the properties locally, and I am now looking at unrealized substantial equity gains that could be captured and re-purposed should I decide to sell them in today’s market.  And so, the question I keep pondering is, “Are we near the top?”


Real Estate is on a continuous cycle.  Its almost always moving up or down, just seems to do so at different speeds in different portions of its cycle.  I’m sure most everyone remembers how fast it moved through 2002-2009.  It moved very fast in both directions up, and then down!  And although I say it moved fast, the reality is that it moved up for roughly five years, leveled off, and then down for roughly 3 years.  So fast is a relative term here.  But using the last cycle as a reference to the present cycle, we’ve had growth years from 2012-2016, five years.  And from the table referenced above, the median home price seems to be appreciating at a slower percentage than previous years.

Could this mean its starting to level off at the top?  My gut tells me that we’re not going to see the same kind of drop as last time, much like this last rise.  It has been slower and less dramatic than the previous up-cycle.  But I do feel like the market is showing me that its starting to level off.


So back to the questions at hand.  Do I buy now?  My short answer is no.  Not unless the deal cash-flows and makes financial sense to buy and hold for the long run.  This is not a time for speculation and trying to time the market to make a quick profit.


Do I sell now?  If you have a place to put the cash from the sale that will safely generate a decent return, I say yes.  That’s my plan with a few of my properties I currently hold in my portfolio.  In fact, I’ve just closed escrow on a condo that I purchased in 2012 for $150,000.00 and sold last month for $232,000.00.  I’ve taken the cash and placed it into another escrow to purchase a four-plex that should be closing within the next 30 days or so.  It gives me four doors for the price of one, creates monthly cashflow for my family, and provides better leverage with bank financing than the condo had.  This is the win-win scenario I’m constantly looking for.


I hope this post helps you progress in your Real Estate Investing journey!  Remember, one step at a time…

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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