I’ve got an offer out on a 4 plex for a couple I’m working with. It’s a pretty amazing REO (bank-owned) property in Miracle Mile. Knowing that the list price was a bit low for the area, we offered $115,000 ABOVE list for the property. We also jumped through a series of increasingly annoying hoops … Continue reading “Brokerage Etiquette”
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Why would I sell real estate?
I often joke on this blog that you should never sell apartment buildings. The main reason is that the transaction costs of selling real estate are high (brokerage commission, transfer tax, etc.). Also, in CA, there’s a major benefit to holding on as your rents increase, because your NOI margin increases (see here for more … Continue reading “Why would I sell real estate?”
REAP / Code Enforcement / Eberly Company Summit Meeting
The LA Fair Housing Coalition, a group that fights for landlords, has arranged a meeting for members with officials from the LA Housing Department’s REAP and code enforcement offices and the Eberly Company, which was recently hired as a landlord outreach contractor by the city. The idea is to give landlords a chance to explain … Continue reading “REAP / Code Enforcement / Eberly Company Summit Meeting”
$500k flip opportunity
Am going to blast out a tasty small apartment flip deal at around 2pm PST today to the mailing list. I’m intimately familiar with the deal and I think it’s a winner for someone who can bring $500k in cash to cover acquisition and renovation. The upside is $60-125k in profits within six months or … Continue reading “$500k flip opportunity”
The Biggest Mistake LA Landlords Make
How do you feel about giving your tenants part ownership of your apartment building for free? Pretty terrible, right? If you own a rent controlled building in Los Angeles and don’t raise your rents by the amount allowed by the city each year, you’re effectively giving your tenants a stake in your building for free. … Continue reading “The Biggest Mistake LA Landlords Make”
Never Buy a Building with a Non-Conforming Unit
I was once in escrow to buy what I thought was a 16 unit building on Clinton St. in Echo Park, one unit in which was “non-conforming”. The owner had taken a common room and turned it into a studio apartment. The listing broker assured me that this was pretty normal in LA and, indeed, … Continue reading “Never Buy a Building with a Non-Conforming Unit”
Ethics for brokers
Being a good broker is about keeping two different, competing ideas in your head at the same time: I am in business and want to maximize the amount of money I make; and I want to do the best possible job for my clients. It’s amazing how difficult some brokers find it to balance these … Continue reading “Ethics for brokers”
1239 N. Westmoreland is for sale
We’re selling 1239 N. Westmoreland Ave. in East Hollywood in order to realize some profits for our investors. It’s a pretty great building: 5 units, 4 one bed, 1 two bed Totally rebuilt in 2009-10 with permits; no deferred maintenance Monthly rent is $7,980 For sale at $949,000 (9.9x grm) Here’s the listing on Loopnet: http://www.loopnet.com/lid/17621152 … Continue reading “1239 N. Westmoreland is for sale”
The right strategy for selling
There are two basic strategies for selling property: Price it high and wait; or Price it low and have a bidding war The second one is much, much better. To understand why, let’s take a look at both. 1. Price it high and wait The theory behind price is high and wait is that, eventually, … Continue reading “The right strategy for selling”
14 unit re-positioning deal
The 14 unit deal I mentioned late last week is going out to the mailing list around 5pm today. If you want to understand how the numbers work on a larger apartment project, this is a good one to take a look at. To join the mailing list, click here and follow instructions. Should take … Continue reading “14 unit re-positioning deal”