Q: What’s Your Real Estate Investment Journey?

If you’re thinking about investing in real estate, think about ADUs, too.

I’ve been building wealth through real estate for years, and today I’m going to share my journey  with you. 

Cited below for your convenience are timestamps that will direct you to various points in the video. Feel free to watch it in its entirety, or use these timestamps to browse specific points at your leisure:

0:55- Why my property’s location doesn’t allow me to take full advantage of the ADU laws

2:00- How our tight market factors into investors’ plans

3:30- The different costs investors should take into account when calculating their cap rate

4:45- Why building an ADU or two can significantly increase your profit margins and cash flow

7:30- What your investment could look like 10 years down the road

8:15- Wrapping things up

If you have any questions for me about investing in real estate, ADUs, cash flow, or anything else, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Q: Is This a Good Market to Build Wealth in Real Estate?

Here’s what the market looks like for homeowners who want to build an ADU.

Continuing my series about how to create wealth through real estate via an ADU, I’m going to shift my focus to the market and how it is right now for investors. I’ll take a look at the second quarter numbers of 2020 and compare them to the second quarter numbers of 2019.

In April of 2019, we had 2,500 new listings come on the market, and 1,787 homes went under contract. That means 71% of the listings were going to escrow each month, and that gave us 1.4 months of inventory. These figures were pretty steady throughout May and June 2019 as well.

In 2020, we saw a big drop in homes under contract in April. There were 1,344 homes listed in April and 869 of them went under contract. That’s a 65% drop.

However, since then, we have seen a recovery. In May 2020, we had 1,828 new listings and 1,435 homes that went under contract. That was a 65% jump from April, which is great news.

You can benefit from adding an ADU because demand for housing is so strong.

In June, we saw a 6% increase in the number of listings from what we saw in June 2019. That’s a great sign for the future of our market. This is a result of pent-up demand being released as stay-at-home restrictions slowly lifted.

How’s pricing? In June 2019, the average price per square foot was around $378. Right now, we have an average price per square foot of $387. We haven’t seen a big jump, but we’ve seen a healthy increase, which is a good sign.

If you ask me, it’s a great time to invest in building an ADU for your home. Many sellers aren’t selling, so you can benefit from adding housing to your home because there is demand for it.

If you have any questions about the market, investing, or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you.

Q: How Can I Get an ADU If I Don’t Have the Cash?

Today I’m explaining how to get an ADU even if you don’t have the cash. 

This is my first week back to work in my regular office after more than three months of lockdown! In my last video, I discussed ADUs (accessory dwelling units) and received a ton of feedback from people who are telling me they’re interested but don’t have the cash and want to know how they can pull it off. Today I’m going to be sharing all the information about the Fannie Mae program that can assist with this. I’ve helped clients use this program before with great success. This program can also help you refinance, too. To learn more about this excellent program, watch my latest video above.