In this next episode of Hot Investor Trends, we turn to real estate, exploring how
investors are still building wealth through proven strategies that work in any market.
President of the Los Angeles County Real Estate Investors Association, I am a retired
attorney. You can tell I'm retired because I have gray hair. And now I'm mostly a
landlord. You can tell him a landlord because I have gray hair.
The good news is I successfully mediated two evictions today.
The bad news is I got at least four speeding tickets on the way here. So our
association is the oldest and largest in California. We started in 1996.
We now have 55 ,000 investor paying members, another 50 ,000 that are in our
database. so reaching over 100 ,000 investors.
bought one or two properties and are going to the next level. For us,
the most important thing is to try to, people realize it's a lot harder to get
invested started in California as opposed to in other places the United States.
I want to just read off quickly. We try to move into the most affordable areas
around the country, cities, that we can do investments. And we've set up sort of
chapters in 10 different cities for
open one in Baton Rouge, Louisiana. The reason why we're going into these cities is
because for new investors, I mean, don't get me wrong, I'm involved with a $10
million project shopping center here in L .A. But we're looking for cities where we
can get single family residences for under $100 ,000. So the idea is to get
investors in easy at $100 ,000 investment rather than at an $8 ,900 ,000 median price
of a home in L .A. County. That's the logic behind that. And what we're able to do
is have them involved with what we call the Burr method. I'll know any of what's
heard of that, BRRR, which stands for buy, rehab,
refinance, and repeat just like shampoo so the idea we've been really successful in
getting students to and members to buy into a property in one of these cities
providing them the realtors providing the escrow companies the title companies the
contractors to do the rehab and and what's happened then with that process with
doing a burr is the idea is you're not going to just buy one property you're going
to buy enough like you can't just eat one
real estate and to have them be successful one step or maybe I should say one
potato chip at a time. I love it. And how about one million dollar piece of
advice? It might be the Burr method. It might be those different niche areas that
you're going to. Yeah, I just gave the Burr method. I guess the other thing is
don't be a landlord.
And how about this? In those different areas, is there a specific way how you like
to be approached or that you like to approach those different opportunities since we
still have 30 seconds? What do you mean by that? For like those $100 ,000 homes or
things that way, there's certain ways that you're finding that or that you're
recommending people in those chapters to go locate them? Well, we have realtors in
each of those cities staked out now. We're looking for houses that you can buy for
under $100 ,000 that will be, anyone ever heard of the 1 % rule where you look for
rents to exceed 1 % of the value of property. You can only do that in certain
cities in the United States. Used to be when I was a kid, there'd be hundreds of
cities like that. Now you're lucky if you can just find 10 cities where your rent
will exceed 1 % of the purchase price. So on an easy superficial level,
that's the best way to do it. I'm out of time. Yeah, no, that's great. Everyone, a
little round of applause for Lloyd here.
Thanks for tuning in. In the next episode, we shift from real estate to portfolio
management, how elite investors protect before they grow.