[Note: I wrote this piece a long time ago but couldn’t post it until now, because I didn’t want to screw up a potential deal in progress.] Am helping a couple who are looking to buy an apartment building for roughly $1MM, all cash. Surprisingly, there’s not a lot out there. I did manage to … Continue reading “How not to price your building”
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Why there are vacant lots in Los Angeles
Have you ever wondered why there are vacant lots in Los Angeles? Blame Prop 13. Proposition 13 is an amazing law for California property-owners. Passed through CA’s referendum process in the late 1970’s, Prop 13 sets property tax at 1.25% of a property’s original purchase price and restricts increases to 2% per year (until the … Continue reading “Why there are vacant lots in Los Angeles”
The state of the West Hollywood apartment market
Today I spoke with a broker who has an eight unit property in West Hollywood listed at a somewhat reasonable $187,500 / door. I say somewhat reasonable because the gross rent multiple is 15x. At a list price of $1.5MM, that means the property is generating rents of $100,000 / year. The rents are obviously … Continue reading “The state of the West Hollywood apartment market”
Thanks for the amazing response
Wow – we got a lot of new visitors to the site yesterday. I’m very hopeful that some of them (you?) will stay on and join our conversation going forward. I’ve already set up meetings with several people who contacted me. If you’re sitting there reading this (incredibly boring!) blog and soaking up everything I’ve … Continue reading “Thanks for the amazing response”
Welcome
Looks like a lot of readers of the Eastsider are joining our conversation today… Welcome! In my day job, I work with investors to buy and fix up apartment buildings. I write this blog in order to meet like-minded people and also to share what I’ve learned from buying, renovating and selling 20 or so apartment … Continue reading “Welcome”
Los Feliz Rent Survey – July 2012
It’s time to continue our regular survey of Los Angeles rents. We do these surveys to give renters, landlords, developers, lenders, and appraisers access to up-to-date information on the rental market. This time, we’re focusing on Los Feliz. Things to note: This was a whopper of a survey, because Los Feliz is a huge neighborhood, … Continue reading “Los Feliz Rent Survey – July 2012”
What you do before buying land for development (part 1)
Little known fact: Under federal law, if you buy a parcel of land that’s polluted, you become responsible for cleaning up the pollution, even if you weren’t the one who polluted it. I once was in escrow to buy a huge, sweet parcel on Sunset to develop into apartments. It turned out to be the … Continue reading “What you do before buying land for development (part 1)”
What’s a NNN (triple net) real estate deal?
Mostly, this blog covers apartment investing. That’s because apartments are the easiest part of the real estate game for new investors to enter and also the part that I know best. But there are other parts, some of them pretty interesting. Take NNN investing, for example. NNN (“triple net”) refers to a kind of commercial … Continue reading “What’s a NNN (triple net) real estate deal?”
Incredible FHA opportunity in Echo Park
If you fit the following criteria, you should get in touch immediately: Want to live in Echo Park Want to buy a fourplex apartment building Have a good job and good credit Do not currently own property Have at least $60,000 in the bank This is the kind of deal that ensures a family’s financial … Continue reading “Incredible FHA opportunity in Echo Park”
How you get them to believe a $1MM building is now worth $2MM
When I re-position a building, the numbers often look something like this: I buy the building for $1MM, spend $500k on renovating it, and then ask a lender or buyer to believe that the building is now worth $2MM, based on the rents I am achieving from the new tenants. Now, obviously, the lender or … Continue reading “How you get them to believe a $1MM building is now worth $2MM”