Recently, I’ve noticed a new trend rearing its ugly head in apartment deals in LA: the Seller Addendum. What’s a Seller Addendum? It’s an addition to the normal sale and purchase agreement that severely limits Seller’s liability during and after the sale process. For example, the Seller Addendum might limit damages to which Buyer is … Continue reading “Attack of the killer Seller Addendum”
Category: Brokerage
How much is my apartment building worth?
The short answer is, if it’s in Los Angeles, its probably worth more now than it has ever been worth in the past. Why? Because everyone with cash and a brain is sick of getting 0.01% interest in his/her checking account and is therefore chasing yield by buying buildings, because even a so-so deal on … Continue reading “How much is my apartment building worth?”
Shoot first and ask questions later
There are a lot of buyers chasing deals right now. It feels like everyone woke up after New Year’s, realized they’ve been earning 0.1% in their money market accounts, and decided to buy apartment buildings. Many of them are doing really stupid deals, ones where I can guarantee they will earn basically no return for … Continue reading “Shoot first and ask questions later”
Non contingent offers
Am working on a potential deal to buy a fixer with a client. When I called the listing broker to get guidance on the offer, I was told they already had non-contingent offers and that my clients would need to make one themselves in order to have a shot at the property. What’s a non-contingent … Continue reading “Non contingent offers”
FHA loan limits
Have recently had a lot of buyers interested in using FHA loans. We’ve discussed why this is a difficult time to get these loans done before. But, obviously, being able to buy an apartment building with 5% down is pretty appealing. So I thought I’d post a quick FHA refresher. FHA is a program for first … Continue reading “FHA loan limits”
If you want to work with me…
Five things I absolutely need from you if you want me to help you buy an apartment building: 1. Communicate exactly what you want. Some people really want to buy a turn-key deal right near their home and don’t care about the financial returns. Obviously, this is not my preferred strategy and I will always … Continue reading “If you want to work with me…”
Thinking of going FHA?
We’ve talked a lot about the FHA program on this site. For those just joining us now, FHA is a federal government program that encourage homeownership by making it possible for non-owners to buy homes or small apartment buildings with as little as 3.5% down. Sounds pretty amazing, right? It was. I helped some friends … Continue reading “Thinking of going FHA?”
Who lists property today?
Just got an MLS alert about a somewhat decent deal in Highland Park. Was considering whether it would work for any of my clients (probably not) when the thought hit me: What kind of an idiot lists a property today? To understand why I think listing something today is so crazy, you need to understand … Continue reading “Who lists property today?”
What’s an earnest money deposit?
Lucy read my piece yesterday and wanted to know what an earnest money deposit is. I swore up and down I had already written about it. She disagreed. Turns out she was right. Anyway, an earnest money deposit (EMD) is the money the purchase contract requires the buyer to put into escrow immediately after the … Continue reading “What’s an earnest money deposit?”
If it’s such a good deal, why don’t you buy it?
I get asked this question a few times per week, so I figured I’d post my answer here so that I can just refer people and save my breath. Let’s start out by saying I fall in love with a lot of properties, many of which don’t necessarily have such great numbers on the surface. … Continue reading “If it’s such a good deal, why don’t you buy it?”