- Brett and Jason Oppenheim are the stars of “Sunset Sale” and owners of the show’s property collection.
- They buy real estate on a ‘perception’ basis, i.e. they buy poorly equipped homes where they can add value.
- They say poor supply, rising equity, and difficulty financing mean there is no housing bubble.
Brett and Jason Oppenheim, owners of the Oppenheim brokerage group, may be better known for their appearances as peacemakers and romantic interests for hack employees.
Show “Sunset Sale”.
But behind that lies a ruthless brokerage that handles hundreds of millions of dollars in real estate each year and has estimated total sales of nearly $2 billion since operations began in 2014.
From a bedroom office to Sunset Street
Although Jason hails from a legacy of estates going back to their great-grandfather, who sold farms in the 19th century, Jason started an Oppenheim group brokerage in his spare bedroom with one apprentice. They eventually moved to Sunset Boulevard in Los Angeles, California, and now have another California office in Newport Beach.
He said the brokerage has seen revenue growth of 20-25% each year since then, and that its smaller model has allowed it to build partnerships with agents and maintain quality with only a small number of employees, which they claimed protects them from economic downturn more than just typical, Extensive company.
If there is a file
“You will see a lot of big brokerages go bankrupt, or at least close to that,” Jason said. “While our model can continue.”
Search for “hidden value” and ignore “staging”
Brett and Jason always look for the hidden value in the list. While their standards and expectations are likely to be incredibly different from those of the average citizen in the United States, they argue that it is a downward strategy to first-time buyers who are increasingly priced outside a highly competitive market.
Jason said first-time buyers should first find a good agent in the area they want to own a home in, and then focus on the specifics of the property.
Jason described residential real estate as “emotional”, and that in addition to the “intrinsic value” found in square footage, property sizes and location, a home’s presentation can significantly alter its value.
“You can turn a $300,000 home into a $330,000 home with the right frame,” Brett said.
Taking pictures of your home on an iPhone, failing to tidy up, and poor “staging” — the home’s presentation — were red flags that the brothers said could reduce a home’s value to the seller, and where buyers might find a bargain.
‘I will try to pretend the place is unfurnished,’ said Brett, ‘look at the views, how bright it is, the floor plan, the size, the location, and don’t be fooled by the gradation, the paint, and the carpeting.’
Jason and Brett said they always buy poorly presented properties because they have the greatest potential to appreciate their value.
But Brett said these issues are often irrelevant if a buyer is willing to sit in a home for at least 10 years.
According to Jason, it’s nearly impossible to lose money in real estate if you can keep it for 10 years.
“The only time you get hurt in real estate is if you are in a situation where you have to sell,” Jason said. “If you are financially able to own real estate during an economic downturn, you will inevitably, at some point, achieve financial success with your assets.”
Why is a housing collapse unlikely?
This potential downturn has divided analysts, with annual price growth exceeding 15%, much higher than in the period leading up to the 2007-08 crash. Brett and Jason, perhaps inevitably, fall for the upside.
Brett argued that the recent bubble was the result of too many buyers accepting a mortgage, which is not the case now. Meanwhile, Jason highlighted the home shortage, about half the rate at the time of the housing crash, as a key difference now.
“You have record ownership in real estate right now, record low supply, and that will continue,” Jason said. “So I think the market will continue to stabilize for the foreseeable future.”