When I buy apartment buildings (or help other people buy them) I am ruthlessly focused on the cashflow they generate in year one. I don’t factor in rents increasing, nor do I factor in price increases stemming from rent increases. I want to know what the cashflow is RIGHT NOW. Many buyers to factor in … Continue reading “How apartment investing can turn ugly right now”
Author: Moses Kagan
More on demands
We briefly discussed demands (the documentation provided by the lender of what the borrower still owes on a loan that’s about to be paid off) a few days ago, because I was dealing with a particularly irritating lender who was taking forever to issue a demand. You’re not going to believe this, but the lender … Continue reading “More on demands”
Getting a demand from a lender
I have an all-cash deal in escrow right now that’s being held up by escrow’s inability to get a demand from the existing lender. Since it’s irritating me, I thought I’d share the experience, so that you’re not surprised if/when it happens to you. First: What’s a demand? When a seller sells a property that … Continue reading “Getting a demand from a lender”
Grabbing talent where you find it
Almost forgot to post, which would have broken my streak! We’re in the process of selling a 16 unit building we rehabbed over the past few years. The buyer brought along an inspection company we’ve never seen before. After watching them work for an hour or so, without planning it, both Jon and I separately … Continue reading “Grabbing talent where you find it”
How bad credit restricts opportunity
A word of warning: This piece is going to sound patronizing or overly earnest, depending on what you think of me. Just know the sentiment is genuine. Here goes: Whenever we negotiate a tenant relocation, where we pay the tenant an agreed amount in exchange for the tenant leaving the building, I make it my … Continue reading “How bad credit restricts opportunity”
Today we are…
1. Negotiating and hopefully signing a purchase agreement addendum for a client. 2. Putting in a counter to a counter on a big building. 3. Trying to buy out three tenants. 4. Writing an offer for a client on a medium sized building. 5. Touring two development sites.
Real estate speculators wouldn’t let me sleep last night
Los Angeles was developed as a giant real estate speculation by speculators looking to lure mid-Westerners out here for the weather. The great thing about the business model was that, because the weather is so mild, they could build houses pretty cheaply (out of wood and stucco, instead of brick and steel). The developers didn’t … Continue reading “Real estate speculators wouldn’t let me sleep last night”
North Hollywood Rent Survey – October 2012
This month, we’re taking a look at North Hollywood rents, mostly because I’m curious about why people are paying such high prices to buy apartment buildings there. A few things to keep in mind: North Hollywood is huge; there are way more apartments there than in other neighborhoods we’ve looked at previously, so the numbers … Continue reading “North Hollywood Rent Survey – October 2012”
Remember the BATNA!
What’s a BATNA? Jabba tried to feed Skywalker to it. Just kidding. It’s the acronym for “best alternative to negotiated agreement”. BATNA is a term of art in the world of negotiations. It’s intended to represent your best choice besides taking whatever deal is on the table. For example: Let’s say you have only one … Continue reading “Remember the BATNA!”
Estoppels estoppels estoppels
Regular readers have heard me bang on about the importance of estoppels for months now. But two brokers have recently asked me to have my clients remove contingencies before providing them, so I feel like it’s a good time for a reminder… NEVER REMOVE CONTINGENCIES WITHOUT SEEING ESTOPPELS At this point, new readers are probably … Continue reading “Estoppels estoppels estoppels”