Sorry for the late post today. I’m up to my eyeballs in work and my kid just barfed all over the place. On the plus side: Jon and I just opened escrow on a great new deal. More info later when I can share more.
Author: Moses Kagan
Due diligence questions
The due diligence period, also called the contingency period, is the buyer’s chance to learn everything he can about the building before making a decision about whether to buy it. If you don’t ask your questions during the diligence period, and something comes up later, it will be too late to back out. Remember: You’re … Continue reading “Due diligence questions”
Single family homes and rent control
Have been seeing a lot of searches coming through from owners of single family homes currently being used as rentals in Los Angeles. Want to clear up some confusion: If you own a single family home on its own lot, your property is not covered by the Los Angeles Rent Stabilization Ordinance (rent control). That … Continue reading “Single family homes and rent control”
2241 Branden is for sale
I am so bummed to part with this one that I’ve been putting off listing it. It’s the property in our portfolio that is best suited for a family to take down and hold for a long time. Wish it could have been my family, but I don’t have the dough! Anyway, here are the … Continue reading “2241 Branden is for sale”
Venice Rent Survey – September 2012
Time for another look at rents in a gentrifying (gentrified?) neighborhood in Los Angeles. This time, we’re heading over to the Westside to take a closer look at Venice. Here are the highlights: Median rent for studios was $1,275 (lower than I would have expected); Median rent for one bed / one baths was $2,575; Median … Continue reading “Venice Rent Survey – September 2012”
4443 Willow Brook – Sold!
We just exited another deal: 4443 Willow Brook, a 12 unit building in rapidly gentrifying East Hollywood. Here’s an exterior pic: Here are the numbers: Acquired for $925k in July 2010 Renovated for $700k All in for $1,625,000 Rent roll of approximately $217,000 / year when we stabilized it Extracted approximately $200,000 in cashflow while … Continue reading “4443 Willow Brook – Sold!”
Never, ever reduce unit count
One of the contractors I use a lot recently did a rehab of a small apartment building in Silver Lake. He bit a lot of our style, but that’s life. When I asked him about the project, what he told me shocked me. Apparently, the genius who bought the place paid my contractor to turn … Continue reading “Never, ever reduce unit count”
Congrats, Chris and Cat!
Just closed an incredibly difficult fourplex deal in Boyle Heights, involving vacating tenants, a bunch of rehab, and re-negotiating the price a few times (due to appraisal issues), with Chris and Cat, two clients and (now) friends. Some deals are smooth. Some aren’t. This one, frankly, wasn’t. I learned a ton (I’m always learning) and … Continue reading “Congrats, Chris and Cat!”
How long should the contingency periods be?
As we’ve discussed before, when you write an offer on an apartment building in Southern California using the standard purchase agreement, what you’re really doing is handing the owner a proposed purchase contract filled out with the terms upon which you are prepared to buy the property. Theoretically, the owner could just sign the offer … Continue reading “How long should the contingency periods be?”
Managing risk
The more deals I do, the more I realize the importance of managing risk. Buying a property is kind of like a teenage seduction. Each side shows a little skin, then waits to show more until the other side shows some. First the buyer offers a price. Then the seller counters. Then the buyer accepts. … Continue reading “Managing risk”