Had two conversations with people interested in buying condos for investment purposes yesterday, so figured I’d repeat what I told them here. The first thing to understand about buying condos (and single family homes) in Los Angeles right now is that doing so is not really an investment. Why? Because prices are so high relative … Continue reading “Should I buy a condo as an investment?”
Category: Brokerage
Yet another irritating appraisal issue
Just had an annoying issue pop up on an appraisal one of my agents commissioned and thought I would share. This is a deal where we are representing the buyer of a somewhat run-down fourplex in an improving area. The buyer intends to spend some money upgrading the property post closing. However, the appraiser is … Continue reading “Yet another irritating appraisal issue”
Why we pull the permits and how we share them with clients
Here’s an annoying catch-22 in which we often find ourselves in the brokerage business: Obtaining permits for a client. To understand why, you first need to understand how important it is to pull the permits on any building before buying it. The idea of the due diligence process conducted during the contingency period is to … Continue reading “Why we pull the permits and how we share them with clients”
Who cares if the tenants find out the building is for sale?
Pretty often, owners want to try to prevent their tenants from knowing the building is for sale. I get why this is a concern with market-rate tenants. They are paying full-whack and you want to keep them happy. But, with under-market tenants, this is just insane. What, exactly, are they worried about? That the tenants … Continue reading “Who cares if the tenants find out the building is for sale?”
Another off-market deal
We just went under contract to buy a reasonably large non-rent control building in an area we like. The price isn’t a steal by any means, but it’s fair. The reason is that there was no auction. The broker, a reader of this blog, has been managing the building for the seller for a long … Continue reading “Another off-market deal”
Using a tenants-in-common structure for 1031 proceeds
Over the past six months, we at Adaptive have got a crash course in tenants-in-common deals and I think this may open a new avenue for growth in our business. To understand why, you first need to understand what a TIC deal is: A tenants-in-common situation is one in which multiple owners possess a property … Continue reading “Using a tenants-in-common structure for 1031 proceeds”
The problem with portfolio sales
As the market heats up, am seeing more and more portfolio sales. That’s when an owner decides he’s ready to exit the market and offers up all of his properties for sale together, rather than individually. There are at least three reasons for an owner to do this: He’s not interested in selling part of the … Continue reading “The problem with portfolio sales”
Always always always check the estimated closing statement
Always, always, always check your Buyer’s estimated closing statement. Why? First, you have to understand what a Buyer’s estimated closing statement is. It’s a piece of paper that shows escrow’s calculation of how much money needs to come in from the buyer to get the deal closed. But wait, you ask, why do we need calculations? … Continue reading “Always always always check the estimated closing statement”
A new kind of deal for our brokerage
Today, one of the clients of our brokerage is closing on a really interesting fourplex deal. The minute I saw this one on the MLS, I liked it… it’s big, (mostly) non-rent controlled, in an interesting area, on a large lot (so plenty of parking and outdoor space), etc. The reason I’m writing about it … Continue reading “A new kind of deal for our brokerage”
Why we’re in emerging neighborhoods
Found myself talking about neighborhoods with a new agent of ours yesterday. We were discussing why our deals (both the ones we do for ourselves and the ones we broker) tend to be grouped in a few main areas, none of which are the Westside, Hollywood, or Miracle Mile. It’s not that we dislike working … Continue reading “Why we’re in emerging neighborhoods”