We’re working with a reader of this blog to secure our first-ever loan from Freddie Mac, a so-called agency lender, on a project we recently stabilized. Previously, our experience with loans has been with banks. Back when I was first starting out, every broker warned me to avoid the agency lender and stick to banks, … Continue reading “Agency vs. banks”
Author: Moses Kagan
Truly insane appreciation expectations
Oh man, the brokers are at it again. Got a set-up a few days ago on a smaller, rent controlled apartment deal where the broker is pricing in 8% annual appreciation in order to estimate the profit a buyer can expect on the deal. To understand why this is so ridiculous, you need to understand a few … Continue reading “Truly insane appreciation expectations”
The banking time-sink
[Sorry for the paucity of posts; was on vacation with my family last week. Now I’m back in the saddle… eg, my desk chair.] Regular readers know that we take our fiduciary obligations to our investors, both actual and implied, very seriously. Among the most important of these is our responsibility to act as responsible … Continue reading “The banking time-sink”
Rain’s coming
Yesterday’s LA Times had a pretty strongly-worded article warning about this winter’s El Nino, which is shaping up to be a once-in-a-generation weather event. Why am I writing about this now, during the summer, on a real estate blog? Because now would be a good time to replace worn-out roofs on your buildings. Once the rain … Continue reading “Rain’s coming”
Are rents sustainable?
One of my agents was in my office yesterday wondering whether current rents are sustainable. She happens to be looking for a new apartment and can’t believe 1/1s are going for $1350 in City Terrace. In my opinion, rents are very sustainable and, if anything, likely to increase. Why? During the Great Recession, tons and … Continue reading “Are rents sustainable?”
There are still deals
Just quoted a 4plex fee-for-service deal for a long-standing client. The headline numbers are: All-in for ~$1.45MM, inclusive of all renovation expenses and an acceptable fee to Adaptive 10.7x GRM 7% cap $291 / sq ft When it’s done, I think the owner would be able to refi the property at 75% LTV, pull out … Continue reading “There are still deals”
A new kind of deal for our brokerage
Today, one of the clients of our brokerage is closing on a really interesting fourplex deal. The minute I saw this one on the MLS, I liked it… it’s big, (mostly) non-rent controlled, in an interesting area, on a large lot (so plenty of parking and outdoor space), etc. The reason I’m writing about it … Continue reading “A new kind of deal for our brokerage”
Looking for another leasing consultant
With so many projects in the pipeline, we’re looking to add another leasing consultant to the Adaptive team. This person will help us find nice people to live in our nice apartments. To be successful in this role, you need that elusive combination of hustle / salesmanship PLUS honesty / ethics. Not always easy to find, but … Continue reading “Looking for another leasing consultant”
Winning an auction by losing
Just had an interesting experience at probate court. Jon and I had signed a non-contingent deal to purchase 229 N. Burlington St., which is a triplex south of the 101. It’s on a big lot that’s zoned for six units. We were intending to renovate the existing building and build two more units… the numbers would … Continue reading “Winning an auction by losing”
An interesting deal we won’t win
I got a call about an interesting building in Highland Park a few weeks ago. Ordinarily, these are the types of calls I love… an interesting deal, a broker with whom I’ve done plenty of business, etc. But this one is almost definitely not happening, and here’s why: Because it’s a bankruptcy sale conducted under … Continue reading “An interesting deal we won’t win”