Why are California investors moving to Tucson?
Nearly every day I get a call from a California investor asking about Multi-Family investor properties for sale in Tucson. The investors are in San Diego, Los Angeles, Newport Beach, San Francisco and most of the west coast cities. They tell me that investment properties in California are ridiculously overpriced. The expected returns on their investments is so low they are selling assets and coming to Tucson and other cities in Arizona to reinvest the same dollars. They are buying multiple properties in Tucson after selling just one in California.
Tucson has experienced months this past summer where $100,000,000. in sales have closed. This is a huge boon to our economy in several ways. First is the influx of investor capital to Tucson. The secondary benefit is that remodeling dollars are also being invested. Many of our Tucson real estate assets are outdated and need considerable rehab. Rehab equals jobs. Good paying jobs.
My clients who own multi-family assets are giddy with the possibilities to sell their properties, which have substantial deferred maintenance issues, to buyers willing to take on the challenge of updating and refreshing those properties. This is the best of both worlds for owners of Multi-Family assets who want to sell but don’t want to go through the brain damage of rehabbing their properties with deferred maintenance.
By the way, Private Equity Firms invested $20 Billion into Multi-Family Property in Two Weeks. Nationwide they have purchased 79,000 apartment units in just 4 deals. And the buyers weren’t REIT’s. They are Private Equity Firms like Starwood Capital Group and Equity Residential.
Why real estate and not the stock you ask?
DUH! I don’t really have to answer do I? But I will…you probably know that 7 of 10 fortunes are from Real Estate? 70% is a mighty good indicator of safety and higher yields.
Here’s a tip for you…Buying Real Estate With Bad Credit Or No Money Down
PS…The next real estate boom for Tucson will be Walgreen’s purchase of Rite-Aid and the commercial opportunities that spin off of that deal…Wait and see. J