241: Developers Are Ditching This State as Regulations Rise

On The Market

Why are developers ditching California NOW? Is commercial real estate still struggling, and what’s up with all those empty office buildings all over town? Does it seem like everyone is overpaying for properties nowadays? It’s not just you; we’ve been seeing it, too, but there’s a reason why they’re doing it. Today, we’re touching on hot topics from the BiggerPockets Forums and giving our takes on what investors are seeing in today’s housing market.

First, everyone has another reason to bag on California real estate as developers decide to move out of the state, thanks to rising construction costs, long permitting times, and bureaucratic inefficiencies. But in a state with such massive appreciation and high rents, is it really the right move to make?

Next, we’re back to the commercial real estate crash, specifically, the office investing space crash, as more and more buildings sit vacant. There’s one way to solve this, and doing so could make you a LOT of money. Who’s got the guts (and the money) to make something out of all those empty offices? Finally, we’re discussing WHY investors commonly overpay for properties and how they may be making money EVEN when you think their offers are ridiculous.

Do you have an investing question? Ask it on the BiggerPockets Forums!

In This Episode We Cover

The developer departure from California and why builders are ditching the Golden State

Changing regulations and how it’s getting harder to build rental units

Office space’s continued struggles and the one way investors can solve this problem

Overpaying for properties and why investors commonly offer over the ARV (after repair value)

How to audit your construction/renovation costs to know if you’re throwing away money on your rehabs

And So Much More!

Links from the Show

Ask Your Question on the BiggerPockets Forums

Join the Future of Real Estate Investing with Fundrise

Join BiggerPockets for FREE

Find an Investor-Friendly Agent in Your Area

See Henry, James, and Kathy at BPCON2024 in Cancun!

Henry's BiggerPockets Profile

James' BiggerPockets Profile

Kathy's BiggerPockets Profile

A New California Law Just Increased Regulations On Home Flippers

Real Developers Leaving California

What Does the Future Hold for the Office Market?

So many value add buildings selling at higher total project cost then ARV

Grab Henry’s New Book “Real Estate Deal Maker”

Jump to topic:

(00:00) Intro

(01:14) Investors Quit on California

(10:11) CRE Continues to Suffer

(19:28) Overpaying for Properties?

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-241

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