We’ve previously discussed why active real estate investing can be challenging for individual investors here. And then we talked about investing in syndicated deals. This post is about investing in real estate funds, also called “blind pools”. The kind of funds we’re interested in today don’t start out owning any properties (the ones that do … Continue reading “Passive real estate investing part 3: Funds”
Category: How to
How to get started
What an amazing response to the Westmoreland sale post! Am really looking forward to working with a number of you who got in touch. For those who are thinking of dipping a toe in the market but don’t really know how to start, I suggest reading the following pieces: What does success in real estate look … Continue reading “How to get started”
Buying from foreclosure auctions
Is it worth getting involved in buying properties through county foreclosure auctions? The short answer is “maybe”. First, some background: When a borrower defaults on a loan in CA (usually by failing to pay), the trustee who holds title to the property in question is directed by the lender to hold a trustee’s auction. At … Continue reading “Buying from foreclosure auctions”
How to determine what your mortgage payment would be
As part of WordPress, the software that runs this blog, I can see the search terms that land people on my site. Almost every day, there is someone asking Google something like “what are my payments at 5% on $400,000”. Figured I’d share with you how I estimate those. If I’m doing a spreadsheet, I … Continue reading “How to determine what your mortgage payment would be”
The South LA Strategy
Just had lunch with a potential buyer (hi Bill!) who’s thinking of dumping around $1MM into LA apartment properties. He is comparing the opportunities available here with those available in Vegas, Florida, Phoenix and other depressed markets. He’s looking for a very high, 10+% cash-on-cash yield with room for lots of appreciation. Obviously, getting to … Continue reading “The South LA Strategy”
How to value a building that needs work
Rarely do you come across an apartment building in Los Angeles that’s in truly mint condition. Everything’s got a few dings on it; that’s just part of buying older buildings. For those normal, everyday buildings, you figure out a range for the multiples of annual rent in the neighborhood, multiply the annual rents times the … Continue reading “How to value a building that needs work”
Buying REOs (bank-owned properties)
Recently, I’ve written offers on REOs (“real estate owned” – this is short for “owned by a bank because they foreclosed on the last owner”) for three readers of this blog. A lot of people are interested in these kinds of properties, either as potential flips or to fix up and hold as income properties. … Continue reading “Buying REOs (bank-owned properties)”
Project Tour: Saturday, May 12
OK, team. Here’s the plan: On Saturday, May 12, at 1pm, my partner, Jon Criss, and I are going to lead a project tour. The idea is to show you how we do what we do. Here’s what we’ll cover: The math behind our business: We’ll do a quick, in person explanation of how you … Continue reading “Project Tour: Saturday, May 12”
Ethics for brokers
Being a good broker is about keeping two different, competing ideas in your head at the same time: I am in business and want to maximize the amount of money I make; and I want to do the best possible job for my clients. It’s amazing how difficult some brokers find it to balance these … Continue reading “Ethics for brokers”
How to choose a broker to sell your property
First things first. Don’t sell property if you can avoid it! But, if you must sell, use a broker. Choosing a broker and figuring out how to work with him* successfully is the most important part of any sale process. (*Note I’m using “he” and “him” here, but many of the best brokers are female. Just a … Continue reading “How to choose a broker to sell your property”