A lot of savvy investors are aware that there is a tidal wave of apartment construction coming towards us. In Hollywood, Glendale and Downtown, there are literally thousands of apartments in various stages of permitting, construction and lease-up. As an investor buying up buildings in gentrifying parts of LA, all of which are near the … Continue reading “Is the coming apartment glut going to hurt NE LA rents?”
Author: Moses Kagan
Surprise: An implicit development tax!
Recently, the plan checkers at Department of Building and Safety were issued the following edict: The only plans that can be approved over the counter are for additions of less than 500 sq ft and renovation / remodeling of single story buildings. Anything else goes behind the counter. What does “going behind the counter” mean? … Continue reading “Surprise: An implicit development tax!”
Moving…
Sorry for the lack of posts here in the last two days. We moved out of our rental and into the new fourplex on Wednesday and have been dealing with the aftermath since. Last time we moved, we had no children and it was still fairly painful. Now, with two kids and two dogs, it’s … Continue reading “Moving…”
A stupid email I get all the time
“Hi, I need a POCKET LISTING for an apartment building. I have a CASH BUYER with $x,xxx,xxx to spend. Need a high cap rate in a good area. Let me know if you have anything. Thanks, XXXXXX XXXXXXXX” So, let me get this straight: You’re looking for an off-market opportunity to buy something in a … Continue reading “A stupid email I get all the time”
Why we’re moving to the hood
My very patient wife Lucy and I are moving this week to a new home just north of Washington and just east of La Brea. When I tell people where we’re moving, they get sour looks on their faces and say things like “Oh, I guess it’s improving” or “It’s not that bad”. The truth … Continue reading “Why we’re moving to the hood”
What happens when you do a bad deal?
One of the saddest things about my business is watching people do deals which are undeniably stupid. Want an example: How about paying 13x rent for a 5+ unit deal with a bunch of leverage and no plan for removing the tenants / raising the rents? If you do a deal like that, here’s what … Continue reading “What happens when you do a bad deal?”
Silver Lake duplexes nearing completion
We’ve got two wonderful duplexes just south of Sunset nearing completion. When we help our client buy them, they were in rough shape. There was all kinds of deferred maintenance and the tenants weren’t paying much rent. The upside was that they were in a fabulous location, non-rent control and had parking, views, decks, and … Continue reading “Silver Lake duplexes nearing completion”
A thought about the Metro
I think properties near Metro stations are generally undervalued. Why? After all, even if you live near a station, it’s relatively unlikely that you will work near one, too. That fact dramatically limits the Metro’s value to most people in the city. But the trend for Metro is positive: More lines and more stops over the … Continue reading “A thought about the Metro”
Don’t be an ignorant seller
Building owners are usually some of the least informed market participant regarding the value of their own properties. Why? Well, compare them to: Brokers are in the market all the time, checking the MLS and Loopnet, looking at which properties sell and which don’t, etc. As long as they focus on a particular property type … Continue reading “Don’t be an ignorant seller”
Why I love rehabbing
Long term, I believe that more and more affluent people are going to choose to live in cities rather than in suburbs because of the greater economic and cultural opportunities available in cities. As a business person seeking to service this continued demand, there are basically two options: 1. Build ground up. This means finding … Continue reading “Why I love rehabbing”