LVM Attends Family Investment Roundtable Event at Chapman University

Last month, LVM attenphoto(18)ded Chapman University‘s Single Family Investment Roundtable, hosted by  The C. Larry Hoag Center for Real Estate and Finance, The George L. Argyros School of Business and Economics and Chapman University. It was an educational evening of networking and stimulating discussion, which include a presentation panelist of five established real estate experts in Orange County. The panelists included; Emile Haddad, President & CEO at FivePoint Communities, Greg Hebner, Managing Director at Community Rebuild, Gerd-Ulf Krueger, Principal Economist at Krueger Economics, John McMonigle, Principal & Founder at The McMonigle Group and Jan Brzeski, Managing Director & CIO at Arixa Capital Advisors, LLC. The group discussed the current state of the real estate market in Orange County, and what to expect in the coming days.

In response to the opening question; ‘Are Happy Days Here Again?’, Emile Hadaad responded: “These are sober happy days.  Not drunk happy days.” With many foreign buyers coming to the Orange County market and purchasing homes, a trend is beginning to emerge. Hadaad also said that there “is an escape of capital for safe haven in the U.S.  It is coming from Asia and the Middle East…and it isn’t considered money laundering.”

The economist on the panel, G.U. Krueger, said that there is “a lot of room for individual investors at the $500-$800,000 level and more in coastal communities like Venice and Newport Beach.” This was enlightening to many individuals and small business owners envisioning a move to the up-scale beach cities.

The panelists stressed attention to the fact that those lending money have “long memories,” meaning they are only continuing to lend capital to those who have paid back previous debts. Therefore making it more difficult for first-time buyers in the market. Eager home-builders and corporations should be patient and carefully stick with the age-old rule of supply and demand, keeping in mind that “if you build, they don’t necessarily come,” according to Hadaad.

Panelists agreed that the change of cycle that has begun is something that few expected to see happen so suddenly in the market. At what point in the cycle are we now, some may ask? Hadaad responded, “It is difficult to say that…but I will say that a trigger for a change in a cycle in the past was something that nobody predicted.  For example, in the ’90s it was the collapse of the Soviet Union and changes in the defense industry.  If I had to say, this cycle has another 5-6 years left…unless we have another trigger event.”

Overall the panelists discussion led to an informative and eye-opening view of what is going on in the real estate world of Orange County. Here at LVM we appreciate the opportunity to remain actively involved and informed both locally and state-wide of our current culture and financial state. We extend a heartfelt thanks to Chapman University Argyros School of Business and Economics and C. Larry Hoag Center for Real Estate and Finance for putting on a fantastic community event.