- Posted April 22, 2014 by
L.A. Real Estate Investor Barrington Malcolm Sees Trend of Billionaire Hedge Fund Groups Inflating Home Values
Barrington Malcolm, CEO of Dynasty Dynamics Inc., an experienced Real Estate Investor and expert in California real estate says that the trend he’s observing in the market is billionaire hedge fund investors have purchased so many properties it’s reduced the supply available, inflating home values. Barrington says eventually when they decide to sell these properties the market could suffer if there becomes too much supply and not enough demand.
As a real estate investor with more than 25 years of hands on experience in the southern California real estate he’s just about seen it all, from recession, to boom, to bubble, the burst and back to where we are today. An equally emerging trend finds International buyers purchasing luxury trophy properties and paying cash for them. Particularly in an area known as the “Platinum Triangle” consisting of Beverly Hills, Holmby Hills and Bel Air.
A recent LA Times article affirms, “After an International bidding war, a Westside mansion often described as a French palace has changed hands for $102 million, making it the most expensive residential sale ever recorded in Southern California.” The buyer was initially identified as a French billionaire who paid all cash and closed in 10 days. However, it is said the purchaser could be from the US, but the identity of the buyer is not truly known.
Barrington says these investment styles are great, however his investment flair is a little different and more hands on, having not been exposed to hedge funds or investors with unlimited capital, he started his career one deal at a time, one client at a time.
Although today he invests in multiple property types from single family to multifamily simultaneously, he would not trade the experience and the journey. His investment philosophy is different, being raised in Compton by a single hard-working mother connects him more to the real life experience, giving him a genuine heart for community and the passion he has for real estate.
He started at the young age of seventeen while still in high school after watching late night infomercials on buying real estate with no money down. He recalls his hunger for knowledge back then going to a real estate seminar at a local hotel; The things he heard in that seminar motivated him to begin knocking on doors and speaking with people.
After two decades, he admits to making mistakes along the way but never saw them as failure, just a part of the journey that he was able to build on and profit from. Barrington says although hedge fund investors are buying most of the properties that investors like himself look for, with patience and perseverance he is still able to find deals with equity. He renovates the property to add value for his tenants and potential buyers at a fair price making it a win-win situation.
Barrington Malcolm says that although real estate in the beautiful coastal city of Los Angeles can be volatile, regardless of trends or the ups and downs in the market, time brings on change. Nevertheless, real estate will always be the greatest opportunity for anyone to build genuine wealth.