As some of you know, I have been very busy helping clients buy property east of the 110 (i.e., Boyle Heights, Lincoln Heights, etc.). If you didn’t know, I vigorously avoided this part of town up until about nine months ago. In fact, through my entire history as a broker or a principal, I have conducted possibly one transaction there. Well, in the last nine months, that number has skyrocketed into the teens. Why?
In any market, whether we’re talking real estate or anything else, it is always a good thing to anticipate when something is about to be hot. Not “is hot right now,” as that is usually too late for it to be a real opportunity. But rather, and I cannot state it too emphatically or too many times,foreseeing when something is “about to be hot.” Well, that describes real estate east of the 110 in the above-mentioned neighborhoods.
I have several clients buying up a storm over there, buying properties—especially multi-units—for which they are paying (my very educated guess) approximately 75% of what they will be worth in a couple of years. Here is why: Many people who were renting just west of the 110 (Echo Park, Highland Park, etc.) can no longer afford to or simply don’t want to pay the rents being demanded there. As a result, they are gradually deciding renting east of the 110 is acceptable to them. And smart retailers are very busy buying and starting businesses there that cater to this new clientele. Of course, this is the story of gentrification that has repeated itself for decades, even centuries. Some people love it, some people hate it, but no one can really deny its inevitability, and the fact that itis happening.
What’s the moral of the story? Take advantage of an “about to be hot” local real estate market and let me get you a multi-unit across the 110 that cash flows today and increases in valuetomorrow. Let’s lay the foundation for your financial stability and viability.