One of the issues that’s been popping up for me lately is how buyers handle the transition to owning once the deal is done. When you buy the kind of buildings I favor, the ones with low-paying, rent-controlled tenants in them, there is inevitably deferred maintenance that needs to be addressed. The kinds of things … Continue reading “What happens immediately after you buy”
Category: Brokerage
Banks and rents in LA
Right now, one of the biggest problems I see across multiple deals is the total lack of understanding of LA rent control among bank underwriters. Underwriters are the guys (and gals) who review the property and the borrower to help the bank decide whether- and how much- to loan on a given deal. Because they … Continue reading “Banks and rents in LA”
How to get a bad reputation as a principal
Claim you’re buying all-cash; then use a loan Attempt to chip price materially; blame lender When seller resists price chip, force your agent to take a commission reduction, even though he brought you an off-market deal Request an extension of closing Request another extension of closing When seller requests payment for delay, act surprised Ask … Continue reading “How to get a bad reputation as a principal”
Checking in on the East Hollywood income property market
I’m on the record repeatedly extolling the virtues of owning in East Hollywood. I generally think owners there underestimate the achievable rents and that buyers can therefore occasionally find deals that makes sense, even at today’s inflated prices. Today, I figured I’d check in on the income properties on the market in East Hollywood to … Continue reading “Checking in on the East Hollywood income property market”
Even more on dumb brokers
Regular readers know that I don’t necessarily hold my own profession in the highest regard. Yes, there are plenty of great people brokering real estate deals. But there are also tons of mo-mos. And, when I see a mo-mo move repeated over and over again, I get frustrated enough to write a post. So here … Continue reading “Even more on dumb brokers”
About to remove your appraisal contingency? Read this first.
You need to be very careful when you are considering removing your appraisal contingency, because it’s very easy to get burned. To understand why, we need to look at what an appraisal contingency is. Here’s the relevant language from paragraph 3I the California Association of Realtors multi-family agreement: “This Agreement is contingent upon a written … Continue reading “About to remove your appraisal contingency? Read this first.”
Why a quiet marketing period makes sense
When it comes down to it, most brokers who sell residential properties don’t know a lot about marketing income property. (One easy way you can tell is that most of them don’t include information that is absolutely critical to an income property investor – like the rents! – in their MLS listings.) But why does … Continue reading “Why a quiet marketing period makes sense”
Bank error in my favor; collect $1400
It is customary, in Southern California, for the seller in a real estate deal to choose the escrow company. Generally, when I’m representing a buyer, and the buyer asks me if she should be concerned about the company chosen by the seller, I give a speach about how I’ve closed 30 or 35 deals over … Continue reading “Bank error in my favor; collect $1400”
More on demands
We briefly discussed demands (the documentation provided by the lender of what the borrower still owes on a loan that’s about to be paid off) a few days ago, because I was dealing with a particularly irritating lender who was taking forever to issue a demand. You’re not going to believe this, but the lender … Continue reading “More on demands”
Getting a demand from a lender
I have an all-cash deal in escrow right now that’s being held up by escrow’s inability to get a demand from the existing lender. Since it’s irritating me, I thought I’d share the experience, so that you’re not surprised if/when it happens to you. First: What’s a demand? When a seller sells a property that … Continue reading “Getting a demand from a lender”