Results for ‘Due Diligence’ category

Taking apart a deal: An East Hollywood Duplex

Today, I’m going to try something new: Taking a look at a deal in one of our neighborhoods so that we can get a sense for what the numbers look like for the new owner. So, let’s take a look at an East Hollywood duplex that sold yesterday. I should start out by saying I didn’t offer

A terrifying Craigslist post

Just ran across this while checking up on the competition on Craigslist:   We obviously run all our applicants’ credit checks ourselves, so we’re not particularly vulnerable to this kind of behavior. But many landlords will take a credit check form provided by the tenant and that’s definitely unwise, given the above. With rent control

Just missed

I was trying to buy a small office building in East Hollywood. Because it was a former gas station, we were concerned it was contaminated. I spent an enormous amount of time trying to structure a deal that would put the risk on the owner, not me. Eventually, it became clear I couldn’t do it

The tenants are important

“When you’re buying a rent controlled building,” I said to the buyer during an inspection yesterday, “the tenants are at least as important as the physical condition of the building.” This is kind of counter-intuitive, right? After all, tenants come and go, but you plan to own the building for a long time. But, under

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

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