THE REAL ESTATE TAKEOFF
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What does a business plan look like in a market that has rent control, strict landlord-tenant laws, extremely low cap rates, the most expensive labor in the country, and low leverage? Today’s guest is going to explain how he’s able to navigate all of the downsides in Southern California to make huge profits.
Today’s guest is Brent Sprenkle. Brent is a commercial broker for Berkadia in Los Angeles county and also owns his own portfolio of multifamily in L.A. and San Diego. While Brent is intimately familiar with all the downside that comes along with investing in SoCal, he explains how all that downside risk is worth it for the long term appreciation SoCal real estate provides. It’s true you can’t cash flow significantly in SoCal, but it’s one of the safest bets in the country that rents will, in fact, continue to go up over time.
He details how investing in SoCal requires you to be a tenacious investor. Do you have long-term tenants where you can’t raise rents enough due to rent control and the tenant doesn’t want to leave? How about offering them $20,000 to relocate to a different apartment so you can rehab and raise rents? This is just one of the many strategies most investors might find outlandish but actually work in SoCal.
Listen in and learn the nuances of investing in a market like SoCal! This episode has some wild stories.