Further to our earlier conversation about ways into the apartment business… Another good way into the business is through leasing. Technically, you are supposed to have a real estate license to lease apartments. However, many management companies use unlicensed leasing agents, in part because very few licensed sales agents are willing to work for the … Continue reading “Ways into the apartment business: Leasing”
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Ways into the apartment business
I met with a reader of this blog last week (hi Christina!) to discuss how she could get started in the apartment business. I spent a bunch of time blabbering to her and then realized that some of what I had said might interest those of you who are also considering making a career in … Continue reading “Ways into the apartment business”
Selling notes
Here’s an angle on real estate that some lenders pursue: Selling notes. I was trying to explain this business to Lucy two nights ago as we were lying in bed. Needless to say, it put her to sleep. So please stop reading if you have anything important to do this morning. Anyway, here’s how the … Continue reading “Selling notes”
More on the state of the apartment market
This is a verbatim quote from an email from an agent listing an apartment building in a nice part of the Valley: “Yes, it is available, but seller is now asking $50k over listing price. Need an offer all cash at listing price or above no contingencies. That is the only way.” I’m keeping the … Continue reading “More on the state of the apartment market”
Building an apartment brand
One of the coolest things about what we’ve done with the Better Dwellings apartment portfolio is that we’ve created an honest-to-goodness apartment brand without doing anything besides banging out distinctive projects over and over again. Need proof? Here’s a list of the keywords people have searched on Google over the last six months to find … Continue reading “Building an apartment brand”
Ground up construction rules of thumb
As you know, I’m not a developer; I do rehab deals. That said, I’m a curious guy and I used to spend a lot of time looking for construction deals. Pretty often, when I was looking at potential projects, I used to find myself wishing for some simple way to estimate the cost of building … Continue reading “Ground up construction rules of thumb”
What is the Los Angeles REAP program?
Spend enough time looking at Los Angeles apartment listings and you will find one that says something like “Property in REAP. Looking for an all-cash buyer”. Or, much worse, you might get a letter from the Los Angeles Housing Department (LAHD) threatening to place your property in REAP if you don’t comply with their demands. … Continue reading “What is the Los Angeles REAP program?”
Our latest project
We recently closed on a 5 unit property in Echo Park which we’re doing with a partner. They put up the dough and we’re handling all the work of buying out the tenants, designing the renovation, doing the actual construction, and then leasing the newly-renovated units. When all is said and done, our partners will … Continue reading “Our latest project”
How to be a bad broker (episode 387)
Am working with a client considering buying a duplex in LA. The listing broker has the building on the market at $500k. He has no idea what the rent is on the one occupied unit (in what is a rent control building). To illustrate how insane this situation is, let’s review the numbers: List price … Continue reading “How to be a bad broker (episode 387)”
I have a bone to pick with all of you
I’ve been recommending to every single reader that they check out my post on “How to value an apartment building” for six months now. In all that time, no one noticed that I had got the equation for calculating a cap rate wrong. Here’s the relevant text with corrections: “To calculate a CAP rate, you … Continue reading “I have a bone to pick with all of you”