Investor Sam Raffae outlines entry-level single-family housing prices and rental rates in the Palmdale, California market.
Disclosure
Raffae: Targets 10% gross yield to achieve 6–7% net ROI
“I, I'd like to get 10% gross. So I can end up with six to seven percent return on my investment.”
Disclosure
Raffae buys properties sight unseen based on local market familiarity
“Being familiar with the area and the neighborhood, I bought houses without even seeing them.”
Insight
Raffae: Working with friend realtors can cost deals due to over-caution
“When you're dealing with a realtor that is a friend, right? He's extra cautious. And sometimes that extra cautiousness could cost you a property. Like it's hard for me to, for example, to tell my friend, oh, this is a great investment because in case something…”
Insight
Raffae: Real estate beats businesses through leverage despite lower cash flow
“I mean, businesses is another way to invest, and businesses usually gives you much more cash flow than real estate does, but the business, in 99% of the cases, you gotta pay cash for the business. Real estate, you put five, 10, 15, 20% down, and the rest is th…”
Insight
Raffae: Storage facility brokers favor established operators over new investors
“What I mean by specialty is that even the realtors that they deal with storage units. They have their own clientele of storage unit owners, and they work together. And sometimes for you to come in, they, they'd rather deal with somebody that is familiar with t…”
Assertion Not checkable as stated
Title companies provide free owner data in exchange for future business
“The title company can give you that information, providing that if, when you buy The property use them. For the service. So, so it's a win-win.”