Will the City of Angels Keep Rising?

Will the City of Angels Keep Rising?

David Goldman, President of Goldman Financial Group tries to answer Laura's questions about the seemingly endless growth of the Los Angeles real estate market.

Opening: "I'm Laura Munoz and welcome to Let's Talk Commercial Real Estate a newly created video blog covering topics of interest for commercial brokers and borrowers sponsored by American Life Financial. We'll be chatting with members of the real estate community asking them questions that you use submit on social media."

Laura Munoz: "Hi I'm Laura Munoz welcome back to let's talk commercial real estate today we have David Goldman visiting from Los Angeles he is the president of a Goldman financial welcome."

David Goldman: "Thank you"

Laura Munoz: "Thanks for coming all the way from LA

David Goldman: "Yes

Laura Munoz: "LA seems to be a growing market continuously do you see there being any stopping at or you see it just continuing to grow

David Goldman: "You know I talked to some commercial lenders out there and about every quarter they tell me well the slowdowns coming we're gonna stop lending in certain categories so you know try another lender you know so I have to talk to multiple lenders when I get requests sent to me but my personal opinion is while people keep moving to Los Angeles the macro element means more population there's not enough real estate so prices are gonna keep rising over time you're gonna have like little dips but I just don't see the flaws that we had in the financial markets from eight years ago where there's that big debacle but I think like a lot of commercial lenders out there they're still so nervous about making the wrong decision so a lot of them always tread on this side of caution and then six months later the market just went up and what did they tell me six months before all they didn't think that so I think everybody likes to be that naysayer but I mean I think it's gonna rise continuously with you know its share of small dips but as long as they're lending with a good underwriting or thought process I think I think sound fundamentals should keep the market intact

Laura Munoz: "Sure it seems amazing that with California being so expensive and the cost of property taxes the cost of property being so expensive that it just continues to grow what are your thoughts on that

David Goldman: "Yeah it's crazy um you know because you travel across the United States and you have cost of living and you have other value you know you per value of what you can purchase or where you can live or what you can do with your money and it's just it's kind of mind-boggling but there's also a lot of opportunity there so that kind of offsets the expense, similar to New York I think is even more expensive San Francisco Northern California was just more expensive than Los Angeles so I think some of the the the pay is a little bit greater as well so it helps offset those expenses but my girl and I we often talk about moving or doing something different just because we travel and we we see value in other places when you're like you literally can't buy a house like a two-bedroom house for under a million dollars in the Greater Los Angeles area it's it's almost impossible.

Laura Munoz: "Yeah so it's just it's crazy.

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