Real Estate Information |
|
How to Make Money from the California Real Estate Gold Rush
What do the Californians know that we don't? What is so special about California? Why is the average price of a house there five times higher than nationwide? Why on a salary of $100,000 per year, you can hardly afford to rent a decent apartment in the large cities there? It is true, Californians have a nice looking Pacific coastline. They also have a pleasant climate. But they are not the only one. Oregon to the north has a Pacific coast just as nice. The Oregon's climate is even better and their taxes are lower. Still everyone wants to live in California. The Californians are a special bunch. They must know something that other folks don't. Otherwise, how can they market themselves so successfully? Marketing, you said? It can't be that simple. Or is it? How the Gold Rush made California (or was it the other way around) ? California became a state in 1848. Almost at the same time the Gold Rush stories made California a world-wide symbol for instant riches. The stuff dreams are made of. How did it happen? How did the California myth started? If you were to discover gold, would you mine it yourself, or would you tell everyone in town about your discovery? Well, when we learn about it, the first Californians were not that stupid. They tried to mine the golden hills around San Francisco on their own. Very soon they discovered that mining gold is hard labor. Big nuggets were few and far in between. The miners had to crash tons of rocks for few specks of gold. What was the Californians' next step? Stories about gold nuggets lying on the ground started to appear in every newspaper in the world. If those stories were true or not, no one could care less. Those stories sold newspapers and they also started an avalanche of fortune seekers descending on California. While those new immigrants took upon themselves the hard labor of extracting the gold from the ground, the Californians enjoyed their new economic prosperity. They sold tools and services to the miners. Never mind that the miners had to pay for a head of lettuce about hundred times what it cost in New York. The real fortunes were built on services to the miners. Their profits built San Francisco. How to market houses built on an earthquake fault? Fast forward 150 years. California is still the most successful state in the Union. The value of their economy is comparable to China, which has 25 times more population. How do they manage to do that? Let's look at California's Real Estate. The most expensive are the houses that overlook the spectacular Pacific coastline. Those are the places, where small three bedroom bungalows can fetch millions of dollars. Yet the California coast is also the most problematic ground for building a Real Estate anywhere in the whole world. Numerous seismic fault lines run parallel to the coastal line of California. In simple terms - the California coast is slowly moving North, while the ocean bed of the Pacific is moving South. That contradiction produces the most powerful earthquakes. How do they manage to sell all those million dollar homes in spite of the dangers? Earthquake shocks are quite frequent, smaller ones happen few times a year. Chances are that one of them can happen during an open house. How do they deal with that? Their marketing tactics have not changed much from the times of the Gold Rush. They spread stories about California riches, then stand back and collect the money from the newcomers eager to make a fortune. The effect is a self-fulfilling prophecy. When the Gold nuggets are gone, sell the land For example, the San Francisco Examiner ran a story about an illegal Mexican worker, who bought an old house in East Palo Alto in 2002, very cheap. He rented it to other Mexican workers, and after a while was able to buy another cheap house in the same area. Three years later he is still an illegal immigrant, but his two houses increased in value by 300% and are worth now more than a million dollars. Stories like that make us dream of moving to California. What do the Californians do? Let's see another example. In 2003 a retired Spanish lady from San Jose bought a lot in the Montclair area of Oakland for just $18,000. The price was cheap, because the lot was on tax sale and $18,000 was the amount of back taxes owned to the county. Why would a previous owner abandon this lot? He discovered that it was impossible to build a house upon it, so he stopped paying taxes. The Spanish lady put it on the market only one year later, and it sold for $78,000 (yes, this is 433% profit in just one year). What did the buyer do? I remind you that it was still impossible to build upon this lot. The buyer immediately put the lot back on the market for $230,000 or three times more than he paid. For a lot in Montclair this is an attractive price. The last time I had seen it, this lot generated lively interest among prospective buyers, who were eager to join in the California Real Estate boom. P.S. All the numbers are accurate. I can give you this lot's APN number, so you can check for yourself in the Alameda county Tax Assessor office This is the introduction to my new book. For new chapters as they become available visit Money Management Forum at Wise-Investment.info
MORE RESOURCES: Prologis Warns of Slowing Industrial Real-Estate Market The Wall Street Journal Office market collapse: Commercial foreclosures spike 117% in a year Business Insider 21 Largest Real Estate Companies in the World Yahoo Finance Banks' Commercial Real Estate Risks Are Uneven Federal Reserve Bank of Kansas City Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate The Wall Street Journal Inked: Recent LI real estate deals Long Island Business News TikTok’s Origin Story: Court Files Show Role of GOP Megadonor Jeff Yass The New York Times Blackstone Earnings Rise as Investment Giant Projects Commercial Real Estate Recovery - CoStar Group Motley Fool: Investors could trust real estate The Spokesman Review Real Estate Minute – 04-18-2024 KFDX - Texomashomepage.com Real Estate Balance Announces Chair CoStar Group Real Estate Briefs | April 19 | News, Sports, Jobs Cape Coral Breeze Real Estate Transactions: April 19, 2024 The Recorder Real Estate: Q1 2024 - Coronado Real Estate Market Update Coronado Times Newspaper Southeastern Wisconsin industrial real estate market softens in Q1 BizTimes Milwaukee Inside PROFILEconnect 'A Night at The Museum' Real Estate Impact Conference at the Coral Gables Museum PROFILE Miami Google's Strategic Job Cuts Reflect Ongoing Cost-Cutting Measures, Affecting Real Estate and Finance Departments Yahoo Finance Bronx real estate sales drop across the board, though spring market may be more active: report – Bronx Times Bronx Times S.F. housing market: Still very few homes, selling even faster San Francisco Chronicle 'A Man in Full,' starring Jeff Daniels as an Atlanta real estate mogul, dropping May 2 FOX 5 Atlanta Inside Savannah Homes: $6.475M Historic Monterey Square home Savannah Morning News Will It Be a Pricier Housing Market in Spring 2024? Norada Real Estate Investments Mixing real estate & renewable energy to help build greener world NoCamels - Israeli Innovation News EquityMultiple Bullish on Industrial Real Estate Sector, Brings Opportunity to Individual Investors Newswire The Real Estate Top Performers share tips for buying or selling a house in today's market! WUSA9.com Why you might not need a real-estate agent when buying a home Business Insider Blackstone Real Estate Earnings up 15% in First Quarter The Real Deal Documentary shows roots of segregation were planted in Chicago Tribune AI in real estate discussed during virtual forum Westfair Online WHO?! This Southern Utah Town Is A Real Estate Hot Spot! Cat Country 107.3 and 94.9 Shelter Island Reporter real estate transfers: April 18, 2024 - Shelter Island Reporter Shelter Island Reporter 'It was surprising.' Metro Detroit man caught up in real estate scam; here's how to protect yourself My TV20 Detroit Palm Beach home-sale median price up sharply, new Q1 reports show Palm Beach Daily News Boise Real Estate Market Steady Amidst California's All-Time Low KIDO Talk Radio High Country Real Estate: First Quarter 2024 High Country Press Celebrity real estate agent Mauricio Umansky explains when housing prices will come down Fox Business ‘It doesn’t smell right.’ Michigan councilman linked to $69,000 marijuana real estate sale MLive.com Tiny California home the size of a hotel room will sell for 'considerably' more than its $1.7M asking price New York Post Real estate: Buyer’s agents’ role in today’s real estate market Main Street Media of Tennessee Will Hilton Head real estate pricing rules change this summer? Here’s what’s in play Hilton Head Island Packet Real estate mogul concerned how Americans will deal with squatters: ‘Something really bad is going to happen’ Fox Business A new real estate trend? Shopping malls converted into residential units in South Florida NBC 6 South Florida China home prices slumped in March as property crisis drags on Business Insider Fannie Mae, Freddie Mac clarify real estate commission rules National Mortgage News Retirees: Is it time to downsize, even in this real estate market? Effingham Daily News Homes for Sale in Manhattan and Queens The New York Times Who's Had a Harder Time Buying a Home: You or Your Parents? The New York Times Top residential real estate sales for April 1-5 in Sarasota, Siesta Key, Palmer Ranch, Osprey, Nokomis Your Observer |
RELATED ARTICLES
Secrets of Making Money from Real Estate - Part 2 Leverage: With real estate, people and companies will lend you money to invest. How much real estate can you buy with $20,000? Probably between $100,000-$300,000, depending on the lender. Real Estate Wealth Protection Through Short Sales Is a sharp correction in store for the real estate market?Fannie Mae, the largest buyer of mortgages in the US, is worried. They recently warned that the probability of a housing bust has risen sharply in certain parts of the country. Hey Landlord! Is Your Lease Legal? The longer you are a landlord the more you strive to create the perfect lease/rental agreement. Landlords learn in the school of hard-knocks that some tenants are certified trouble makers and we try our best to protect ourselves with a carefully structured restrictive lease. French Property - a Buyers Guide to Purchasing Property in France The CompromisThis document is the document you will sign agreeing to buy the property at the agreed price. It is signed by both vendor and purchaser and sets out all the details of the purchase price and fees. The Many Ways To Profit From O.P.P.s Multiple Cash Streams In a previous article we introduced you to the concept of O.P. Buying A Holiday Home in Rural Ireland Ireland has recently witnessed an upsurge in the number of investors buying holiday homes in some of the country's most scenic areas. With stars like Jeremy Irons and Daniel Day-Lewis popping up in the quaint villages of West Cork, prices in many of these areas are at a premium. Feel At Home Faster After You Move Moving to a new community can be a great adventure, if you go with the right attitude and a sound strategy for settling-in. Incorporate these tips into an action plan, and you'll stay focused, organized and proactive-just what's needed to put roots down fast. Dont Sell Your House--Ever! Keeping your existing house when you buy a new one could be THE most profitable financial decision you could make. Consider the following:1. The Bubble Effect Turn on the TV at almost any time day or night and you will find news and talk shows informing us that there is a Real Estate bubble. What is a "bubble" and how do they know? The simple principle of what goes up must come down is being applied in general thought now and many in the public are starting to buy it. Young Couple Buys Ranch with Government Money Kirk and Tina Sczepanik had a dream. They wanted a ranch of their own. Jacksonville Real Estate Listings With over 30,000 residents, Jacksonville in central Arkansas is a thriving city that offers many opportunities for both longtime residents and newcomers alike. About 20 miles from the state capital of Little Rock, the city is expanding in many ways. Selling Your Home on Your Own - Examples of Problems and Solutions What can go wrong? About a gazillion things, but this is true if you're working with a broker, too. A broker is probably more experienced than you, and may well have confronted and solved your problem on a previous home sale. Home Equity or Debt Trap? Are you using the equity from your home to purchase everyday things? This is a dangerous trend growing more popular every month as millions of Americans tap into the value of their home to fund a lifestyle.How many times have you heard the saying "Your home is the best investment you'll ever make"? How many times have you also heard that your home will be the most valuable asset you will ever own?Both of these are as true, if not truer, today than at any time in the past. Buying a Vacation Home You'd like to buy a vacation home, but you're not sure where to begin. Perhaps the single most important point to determine up front is why you are buying a vacation home. Realtors: Forget Your Address? It's a large real estate agency, and the company depends on a steady stream of leads. The website is classy, with delightful graphic elements and layout. Real Estate News Happy New Year,Make it a better world. "Pay it Forward" as in the movie. Curb Appeal First impressions do make a difference when selling your home. Oftentimes, before making the phone call to schedule an appointment, a homebuyer will drive by your home to determine if they may be further interested. What's Your Style? A Guide to America's Most Common Home Styles Styles of houses vary across the country. From the New England Cape Cod to the Victorians of San Francisco, the choices are almost endless. Five Ps of Selling Houses 1. Planning:Know Your Target BuyersThink about your neighborhood and the buyers purchasing homes near your property. Fixer Uppers: Dont Make This Mistake Making money with "fixer-uppers" isn't about repairing drywall or planting flowers. It's about using the right approach from the start. |
home | site map |
© 2006 TIGER MEDIA |