Results for ‘Development’ category

How you get them to believe a $1MM building is now worth $2MM

When I re-position a building, the numbers often look something like this: I buy the building for $1MM, spend $500k on renovating it, and then ask a lender or buyer to believe that the building is now worth $2MM, based on the rents I am achieving from the new tenants. Now, obviously, the lender or

Inspection Day and Closing Day

Busy day today, so I thought I’d keep it kind of brief and just give you a run-down of what I’m up to: 1. Am helping clients with inspections on a beautiful 1920s fourplex they’re thinking of buying Boyle Heights using an FHA loan. We’ve been at this one once before, but one of the

LA’s crazy Metro system

Want to see something really insane? Check out the location of the Gold Line Extension stop at Pico / Aliso (the little red “A” on the map below): Can you figure out why I hate the placement of this station? Here’s a hint: Look at the use of the land on the north side of

Grandfathered zoning in LA

What does “grandfathered zoning” mean with respect to apartment buildings? To understand that, you first need to understand that zoning in Los Angeles has generally become stricter over time. For a long time, there wasn’t any zoning. You could just buy a few single family homes, rip them down, and put up an apartment building.

When a deal goes bad

If you make enough deals, eventually one goes sour. Here’s one that went sour on me… We were looking into developing some small-lot sub-division homes in Silver Lake. We found a lady selling a house on a properly-zoned  piece of land. We contacted her next door neighbor, whose duplex wasn’t for sale, and convinced him

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