How do you feel about giving your tenants part ownership of your apartment building for free? Pretty terrible, right? If you own a rent controlled building in Los Angeles and don’t raise your rents by the amount allowed by the city each year, you’re effectively giving your tenants a stake in your building for free.
I was once in escrow to buy what I thought was a 16 unit building on Clinton St. in Echo Park, one unit in which was “non-conforming”. The owner had taken a common room and turned it into a studio apartment. The listing broker assured me that this was pretty normal in LA and, indeed,
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
We’re selling 1239 N. Westmoreland Ave. in East Hollywood in order to realize some profits for our investors. It’s a pretty great building: 5 units, 4 one bed, 1 two bed Totally rebuilt in 2009-10 with permits; no deferred maintenance Monthly rent is $7,980 For sale at $949,000 (9.9x grm) Here’s the listing on Loopnet: http://www.loopnet.com/lid/17621152
There are two basic strategies for selling property: Price it high and wait; or Price it low and have a bidding war The second one is much, much better. To understand why, let’s take a look at both. 1. Price it high and wait The theory behind price is high and wait is that, eventually,