There are a lot of buyers chasing deals right now. It feels like everyone woke up after New Year’s, realized they’ve been earning 0.1% in their money market accounts, and decided to buy apartment buildings. Many of them are doing really stupid deals, ones where I can guarantee they will earn basically no return for … Continue reading “Shoot first and ask questions later”
Author: Moses Kagan
Non contingent offers
Am working on a potential deal to buy a fixer with a client. When I called the listing broker to get guidance on the offer, I was told they already had non-contingent offers and that my clients would need to make one themselves in order to have a shot at the property. What’s a non-contingent … Continue reading “Non contingent offers”
FHA loan limits
Have recently had a lot of buyers interested in using FHA loans. We’ve discussed why this is a difficult time to get these loans done before. But, obviously, being able to buy an apartment building with 5% down is pretty appealing. So I thought I’d post a quick FHA refresher. FHA is a program for first … Continue reading “FHA loan limits”
Silver Lake income property numbers from Q4 2012
Small apartment building pricing in Silver Lake continues to be very strong, driven by continued gentrification-driven demand, low supply and historically low interest rates. We ran the numbers on deals for 2-4 unit buildings in Silver Lake (as defined by the LA Times) that closed between September 1 and December 31, 2012, are here’s what … Continue reading “Silver Lake income property numbers from Q4 2012”
If you want to work with me…
Five things I absolutely need from you if you want me to help you buy an apartment building: 1. Communicate exactly what you want. Some people really want to buy a turn-key deal right near their home and don’t care about the financial returns. Obviously, this is not my preferred strategy and I will always … Continue reading “If you want to work with me…”
Thinking of going FHA?
We’ve talked a lot about the FHA program on this site. For those just joining us now, FHA is a federal government program that encourage homeownership by making it possible for non-owners to buy homes or small apartment buildings with as little as 3.5% down. Sounds pretty amazing, right? It was. I helped some friends … Continue reading “Thinking of going FHA?”
Yet another inspector!
A few days ago, I got notice of yet another type of inspection to which apartment buildings in LA are apparently subject. It turns out that the county Health Department makes it their business to inspect every building every year. Of course, despite owning and managing more than 20 buildings at various points over the … Continue reading “Yet another inspector!”
LA apartments need carbon monoxide detectors
As of the 1st of the month, all Los Angeles apartments are required to have carbon monoxide detectors in addition to smoke detectors. Regular readers know I’m not exactly the biggest fan of the way LA regulates landlords. That said, this one is kind of a no-brainer. There’s no reason people should be dying from … Continue reading “LA apartments need carbon monoxide detectors”
My surprising negotiating strategy
When I first broke off from my job in investment banking and went into business for myself, I negotiated like a jerk. I was convinced that winning the early rounds of negotiations about setting things up was incredibly important, because doing so would set a precedent for how things would be in the future. I … Continue reading “My surprising negotiating strategy”
New posts coming soon
Have been traveling the past week and have been lax about writing. Am going to do a big post on what we accomplished in 2012 and then one setting out some high level goals for 2013. Meanwhile, hope you had a wonderful holiday and best wishes for success in the New Year.