Southern California Market-Risk Analysis for the Turnkey Rental Buyer

Think Realty Parent Company Makes Equity Investment in OwnAmerica KANSAS CITY, MISSOURI On May 16, 2018, Think Realty parent company Affinity Worldwide announced it would make an equity investment in OwnAmerica, a leading platform that operates a national marketplace for single-family rental portfolios, deepening the partnership between OwnAmerica, Think Realty, and Affinity-owned National Real Estate Insurance Group (NREIG), which is now the preferred insurance program of OwnAmerica. For more information on this investment, OwnAmerica, and Affinity Worldwide entities, email Laura Chalk at SGF Contracting Services Inc. Becomes Radius Renovation Group

by Kathy Fettke

While there are still some opportunities for California rental owners to generate a little cash-flow inland, there are so many risks to being a landlord in California. You can still do pretty well with short-term rentals (vacation rentals and Airbnb options) near the coasts, but the laws can change at any time.

KANSAS CITY, MISSOURI On May 18, 2018, SGF Contracting Services Inc., a national provider of rehab and renovation services for real estate investors, asset managers, property management companies, and REITs, rebranded as Radius Renovation Group. The move underscores the company’s focus on providing clients with an all-encompassing, 360-degree solution for investor renovations from start to finish. Learn more about Radius Renovation Group at


INstate REIA Hosts First Annual Statewide Real Estate Conference INDIANAPOLIS, INDIANA On May 19-20, 2018, INstateREIA (Indiana State REIA) hosted its first annual conference. INstateREIA is a statewide organization of real estate investing groups with the primary missions of changing public perception of real estate investors and assisting Indiana investors in following and contributing to legislative issues relevant to real estate investing. As a founding sponsor, Think Realty supported INstateREIA’s goal of bringing investors’ importance in the housing market to the forefront while helping investors better understand how they impact the market to ensure lasting real estate legacy for communities and families. Learn more about INstateREIA at

Proposition 13

Extreme Tenant “Rights”

Excessive Optimism

Proposition 13 was approved in 1978 and caps property taxes at one percent of the purchase price with a two percent limit annually for raising those rates even if property values rise exponentially. Rates can go up more than that only when the property changes hands and is reassessed based on the new price. The Threat: In November, two ballot measures will go to vote. One will eliminate these protections completely for commercial properties.

California’s “tenant rights” make it extremely difficult to evict non-paying tenants and may even enable a tenant to deliberately cease paying rent while being fully protected from eviction for non- payment for an extended period. The Threat: Even if a tenant cooperates fully, it can take 90 days or more to evict a non-paying tenant. During that time, you risk property damage, are unable to collect rents, and may face lawsuits if you fail to adhere to a number of complicated eviction laws and policies.

Californians forget their history and believe real estate values never drop. That is just not true! If you buy at the height of the market and are forced to sell at the bottom, you stand to lose a lot of equity and you probably will not cash-flow either.

Think Realty-Sponsored NASCAR Driver Speaks in Republic of Georgia to Support Inclusive Education, Female Empowerment TBILISI, REPUBLIC OF GEORGIA Jennifer Jo Cobb, Think Realty-sponsored American NASCAR Camping World Truck Series driver, spent May 26-June 2, 2018, speaking in multiple locations throughout the Republic of Georgia about empowerment, leadership, entrepreneurship, overcoming personal obstacles, and the benefits of inclusive education to the Georgian economy and led a female-only race at the Rustavi International Moorpark to honor Georgia’s female soldiers, veterans, and cadets. “Jen is an inspiring role model who shows off the best of what America has to offer. Her message will

The Threat: California real estate is very volatile.

reach thousands of young women and men in this emerging democracy,” said Damian Wampler, cultural attaché at the U.S. Embassy Tbilisi. For more information on Think Realty Racing and Jennifer Jo Cobb, contact Dell Hamilton at

THE SOLUTION: ADVANTAGE TO THE CALIFORNIA INVESTOR Don’t despair! California real estate investors have a huge advantage in that they tend to be rich in investment capital. Invest your money in rentals where it makes sense anywhere in the country using the best strategies for you. You may choose to make private loans, purchase turnkey rental properties, or get involved in syndications for huge projects, like commercial developments, for example, that yield huge returns in exchange for access to that valuable capital.

September 22-23, 2018 | The Westin Buckhead Atlanta THINK PURPOSE : Investing with Impact ATLANTA

July 14-15, 2018 | The Marriott Irvine Spectrum THINK RESOURCES : Tech & Innovation IRVINE

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