… for closing on their new 4-plex in West LA.
To secure the property, we had to beat out 12 other offers and agree to move very quickly through our inspections and diligence. The seller wasn’t totally prepared for the sale, so there was a lot of back-and-forth with the listing agent, but that’s life in the big city.
Having spent the last few days thoroughly reviewing the market, I think C and B got a steal. We paid approximately 12x the annual rents for the building. It’s very, very difficult to find anything on the Westside going for less than 14x.
Often, when you win an auction for a property, you have destroyed at least a little value (since, if you had to sell immediately, you’d be selling to the next highest bidder, who presumably offered less than you did). In this case, I’m pretty confident the buyers have a building worth 13-14x, meaning that they’ve created $70-140k. Not too bad, huh?
I’m so proud of C and B for taking down their first apartment building. Am pretty confident it’s going to be the start of a nice little province, if not a full empire! And I really appreciate the faith they put in me to represent them. Thanks, guys!