How Safe is the San Diego Housing market in Q2, 2021, by Adrian Bates.

By Adrian Bates

Investing in Real Estate as a Real Estate Agent in LA.

Depending on the prevailing market conditions, the income you get from being a real estate agent is bound to fluctuate. For instance, according to Pinnacle.com, when the global pandemic hit and a stay-home order was issued, there was a significant drop in housing sales compared to even the housing crisis of 2007. This meant that with the few sales made, income for agents was greatly reduced.

Investing in real estate in LA, the entertainment hub, will offer you a great opportunity to make a passive source of income. Being a real estate agent already gives you an upper hand. You already possess a vast knowledge in the field, that perhaps will make it a lot easier for you to navigate LA’s highly competitive market. Besides, as a real estate agent you already have a great network of fellow realtors that will alert you on the best deals LA has to offer. You do not even need to waste money on fees as you can be your own agent.

But first, why is LA the best place to invest?

1. LA HAS THE 5TH LARGEST ECONOMY IN THE

US.

According to Ewddlacity.com, Los Angeles offers one of the most dynamic economies. It boasts of a fast-growing tech industry, a very creative

economy, a ton of venture capital investment in startups and cutting-edge transportation systems. This means that the employment rate in LA is also high. Should you choose to invest in LA, you will have access to income earners at any level.

With all the attractions in LA, it’s economy mainly thrives on its entertainment industry that so far shows no sign of slowing down. This guarantees a continued demand for housing. It would therefore be a wise decision to invest in rental properties.

2. A GOOD RETURN ON INVESTMENT.

Currently, the rent prices in LA, according to a recent article by FortuneBuilders, are rising faster than the median prices. These statistics imply that it is better to invest in rental properties such as condos than in stand-alone houses. According to Attom Data Solutions, renting is at the moment considered to be a cheaper option in 36 of the 43 counties.

This means that a lot of the potential buyers who can’t afford to buy homes are looking to rent rather than to buy. LA therefore has an abundance of tenants that will make the investment worthwhile.

3. DEMAND IN LA IS HIGH.

People in LA are still holding off from listing their houses on the market because of the uncertainty caused by the pandemic according to a CAR Realtor survey. This has resulted in a very competitive housing market because of the low supplies. However, the sale of the available inventory has gone up by 26.2% according to Nordanrealestate.com. The demand for houses is thus greater than what the market is able to service. This essentially makes LA a sellers’ market.

Ideally, if you decide to invest in real estate in LA, the time is now. The tight inventory and high demand are going to push the prices even higher. It is better to buy property now than to wait for the prices to appreciate further in a couple of months. Even though the prices may be high, you will not fail to make returns on your investment.

1. STEER CLEAR OF THE HOT AREAS.

When the demand is high for the same property, there’s bound to be bidding wars. It is better to walk away from those that you can’t negotiate down because you risk investing in an overpriced property. Consider therefore, to invest in the slower areas. You will get value for your money with good returns.

2. INVEST IN MULTI-FAMILY HOMES.

With a sizable capital, investing in multi-family homes is more profitable. With the current house shortages, there is a great demand for rentals. Since the revitalization of downtown, a lot of properties have popped up, driving the rental income low. It would be wiser to invest in other areas where occupancy rates are higher.

3. INVEST IN FORECLOSURES.

When people are unable to pay their monthly mortgage payments, the bank forecloses on the said properties. Banks usually look to get these properties off their hands quickly.

You therefore, are going to get a good deal investing in these kinds of properties.

Investing in LA’s real estate might seem intimidating because of its competitive nature. But as an agent, you already have the skill sets to make it an easy process. Investing in LA’s rental industry might be just what you need as it will give you good returns for your money.

Work cited.

https://ewddlacity.com/index.php/opportunity-zones-in-la/los-angeles-at-aglance. https://www.pinnaclepmc.com/blog/buying-investment-property-los-angeles. https://managecasa.com/articles/california-housing-market-report/. https://www.millionacres.com/real-estate-market/plan-getting-rich-real-estateagent-read-first/. https://www.rentecdirect.com/blog/why-agents-own-investment-property/. https://www.fortunebuilders.com/los-angeles-ca-real-estate-market-trendsanalysis/.