Are you interested in taking down a 4plex in gentrifying Highland Park on a 13,000 sq ft. lot using an FHA loan and earning a pretty ridiculous return? Perhaps you should have been on my mailing list when I sent out just such an opportunity today. Feel cheated? If you sign up now, I’ll send … Continue reading “FHA Opportunity”
Author: Moses Kagan
Your good credit is incredibly important
In real estate, unless you have so much cash it’s coming out of your ears, your credit is perhaps your most important asset. Late last year, I refinanced our 16 unit building on Reno St. When we bought the property in 2008, our interest rate was locked at 6.3% for three years. Because I hadn’t … Continue reading “Your good credit is incredibly important”
Questions?
I’d like to try something new: Asking for your questions. If you have a question about apartment buildings, either in LA or more generally, please either: Put it in the comments below, or (If you’re shy) email it to me at: moses [at] betterdwellings [dot] com At some point in the next few weeks, I’ll … Continue reading “Questions?”
Should you hold real estate in an LLC?
Lots of buyers ask me about holding properties within an entity like an LLC, instead of in their own names. I’ll share the advice I give them with you, but only if you promise to remember that I am not a lawyer and this is not legal advice. First, let’s be clear about why someone … Continue reading “Should you hold real estate in an LLC?”
All about earthquake insurance
Potential apartment building owners occasionally ask me about earthquake insurance, which is not included in a standard property insurance plan. It’s kind of scary for owners with commercial mortgages, because recourse loans require you to pay up, even in the event of the building being seriously damaged or destroyed. I’ve never bought EQ coverage … Continue reading “All about earthquake insurance”
Why you get the rents buttoned-up BEFORE listing a property
Recently, I closed on a deal where the seller inflated the rents in the marketing materials. It was an unpleasant experience for everyone involved, including the buyer, seller, agents and tenants. Here’s what happened: One of the tenants had applied to the landlord for permission to move a new occupant into his unit. Per LA … Continue reading “Why you get the rents buttoned-up BEFORE listing a property”
Why writers should own apartment buildings
At first glance, the title above seems pretty crazy, right? After all, writers are creative types. They spend their days conjuring stories from thin air to delight the public. Why should people like that be involved in the nitty-gritty of owning and managing apartments? Like many things in life, it comes down to money. Writers, … Continue reading “Why writers should own apartment buildings”
Adding washers and dryers to your units? Careful!
One of the best ways to add value to an apartment building is to add washers and dryers to the units. Why? Because tenants will typically pay $100-150 / month in rent in order to avoid using shared laundry rooms or, worse, going to laundromats. The math is easy: $100 / month in extra rent … Continue reading “Adding washers and dryers to your units? Careful!”
Beware of laundry leases!
When you first buy a building, you’re likely to be approached by someone, often the management company you hire, about signing a laundry lease. It will be pitched to you as a convenience for your tenants and an opportunity for you to make some extra cash. Be careful! What’s a laundry lease? It’s an agreement … Continue reading “Beware of laundry leases!”
Congratulations to C and B…
… for closing on their new 4-plex in West LA. To secure the property, we had to beat out 12 other offers and agree to move very quickly through our inspections and diligence. The seller wasn’t totally prepared for the sale, so there was a lot of back-and-forth with the listing agent, but that’s life … Continue reading “Congratulations to C and B…”