One of the issues that’s been popping up for me lately is how buyers handle the transition to owning once the deal is done. When you buy the kind of buildings I favor, the ones with low-paying, rent-controlled tenants in them, there is inevitably deferred maintenance that needs to be addressed. The kinds of things … Continue reading “What happens immediately after you buy”
Author: Moses Kagan
Banks and rents in LA
Right now, one of the biggest problems I see across multiple deals is the total lack of understanding of LA rent control among bank underwriters. Underwriters are the guys (and gals) who review the property and the borrower to help the bank decide whether- and how much- to loan on a given deal. Because they … Continue reading “Banks and rents in LA”
How to get a bad reputation as a principal
Claim you’re buying all-cash; then use a loan Attempt to chip price materially; blame lender When seller resists price chip, force your agent to take a commission reduction, even though he brought you an off-market deal Request an extension of closing Request another extension of closing When seller requests payment for delay, act surprised Ask … Continue reading “How to get a bad reputation as a principal”
Sometimes what I do feels like public service
We’re in the diligence process on an interesting, mid-size project in Silver Lake. The units are pretty great. But there are a load of shitheads who hang out in front of the building drinking beer all afternoon, every day. Periodically, we drive by and see one or more of them zooted on something much stronger … Continue reading “Sometimes what I do feels like public service”
Warning: Tough plumbing inspector on the prowl
If you’re rehabbing in the Silver Lake / Echo Park area, beware! There is a really tough plumbing inspector handling all commercial (5+) unit inspections right now. We had an inspector two years ago who delayed us on four separate projects (and took years off my life!). Among his greatest hits were: Running a ruler … Continue reading “Warning: Tough plumbing inspector on the prowl”
Tweeners
In basketball, a tweener is a player who’s between positions, like a slow, 6’6″ forward with a strong post game. He’s too strong for small forwards and too quick for power forwards. But, he’s also too slow to guard small forwards and too short to post-up power forwards. There’s value there, but it comes with significant … Continue reading “Tweeners”
Checking in on the East Hollywood income property market
I’m on the record repeatedly extolling the virtues of owning in East Hollywood. I generally think owners there underestimate the achievable rents and that buyers can therefore occasionally find deals that makes sense, even at today’s inflated prices. Today, I figured I’d check in on the income properties on the market in East Hollywood to … Continue reading “Checking in on the East Hollywood income property market”
Even more on dumb brokers
Regular readers know that I don’t necessarily hold my own profession in the highest regard. Yes, there are plenty of great people brokering real estate deals. But there are also tons of mo-mos. And, when I see a mo-mo move repeated over and over again, I get frustrated enough to write a post. So here … Continue reading “Even more on dumb brokers”
About to remove your appraisal contingency? Read this first.
You need to be very careful when you are considering removing your appraisal contingency, because it’s very easy to get burned. To understand why, we need to look at what an appraisal contingency is. Here’s the relevant language from paragraph 3I the California Association of Realtors multi-family agreement: “This Agreement is contingent upon a written … Continue reading “About to remove your appraisal contingency? Read this first.”
Anyone know a Chinese speaking lawyer in LA?
Am looking for a lawyer who is also a native Chinese speaker to help me with a tenant negotiation in Los Angeles. We’re probably talking about 3-6 hours worth of work total and I’d be willing to throw in a bonus for success. If you know of anyone who might fit the bill, please shoot … Continue reading “Anyone know a Chinese speaking lawyer in LA?”