Thought I’d share numbers for a deal we just stabilized. Not going to share the address, because I don’t want to tip anyone off re neighborhoods, etc. Anyway, here goes: Acquired in Spring 2015 Stabilized approx. 13 months later All in for ~$2.37MM Stabilized rent roll of $262k Implied GRM of 9x (!) Forecast NOI of $190k
One of my agents called me yesterday to see if I had any ideas to help her. She’s got a great client who has been making strong offers on single family homes and getting outbid. Everyone is frustrated. As it happens, my parents are in the market for a home on the Eastside (working with
Had someone yesterday email me asking why I think people are paying insane prices for Los Angeles apartment buildings. By insane, I mean 15-19x annual rents. At those prices, there’s basically no cashflow; in fact, at the upper end of the range, it’s likely you’ll pay to own the asset each month (instead of the
Just had a minor epiphany while walking over to the office from breakfast that I thought I’d share with you. It’s kind of embarrassing, in a “slap-myself-in-the-head-for-not-recognizing-this-earlier” kind of way, but I’m all about honesty on this blog, so here goes… Regular readers know I spend a lot of time thinking about the components of value.
Lately, have been thinking about what we mean when we say, for example, that we’re earning a 7% unlevered return on a property. The math is pretty obvious: Say we invest $2MM in a property between acquisition and renovation (assume this is cash and that there is no mortgage). If we generate $140k / year