Am going to be sending out an interesting Highland Park opportunity in the next few days. It’s a little different from our usual deals, but it’s one in which we strongly believe. So, if you are a qualified investor (eg have a net worth exceeding $1MM exclusive of your home and/or income of $200k+ for … Continue reading “Get on the mailing list”
Category: Buying
The essential passivity of the rehabber
By far the most annoying part of my business is this: I am at the mercy of the market. We’ve got every trick in the book for maximizing the rents, and therefore the value, of apartment buildings. We can take the ugliest building in the world and turn it into the kind of place that … Continue reading “The essential passivity of the rehabber”
When to order the appraisal
Recently, the question of when to order the appraisal has caused problems for us on two deals, so I thought I would address it here. Just so everyone is clear on what we’re talking about: When you use a loan to buy a building, the bank requires an appraisal be conducted. Depending on the size … Continue reading “When to order the appraisal”
A great real estate story
One of our agents just bought his first apartment building, it’s an awesome story, and I thought I’d share it with you. When David Brundige came to work with us a few years ago, I knew he was exceptionally smart and entrepreneurial, since we had gone to college together. On the other hand, he knew … Continue reading “A great real estate story”
Seeing the big picture
One of my agents is working with a client on an interesting deal and running into a problem. The building itself is great – big, recently built, non-rent control, in an improving area, fair price. The problem is that the current owners don’t have their act together. Missing leases, conflicting estoppels, deferred maintenance issues. None … Continue reading “Seeing the big picture”
The economics of buying a home in an improving neighborhood
You can now get regular financing on a house under $419,000 for up to 95% of the purchase price. These aren’t FHA loans with high mortgage insurance payments; they’re relatively standard bank loans. Thought I’d run the numbers on a standard, $350k house in an up-and-coming neighborhood to determine if it makes sense for renters to … Continue reading “The economics of buying a home in an improving neighborhood”
The gestation of an idea
I spend a lot of my time kind of aimlessly drifting. It’s pretty weird that I do this; I think most business people are much more focused than I am on a day-to-day basis. What I do is read a whole bunch of stuff and talk to people. I’m not necessarily specifically looking for an … Continue reading “The gestation of an idea”
A pretty amazing success story
Yesterday, I got a call from one of the first people for whom I ever brokered a deal. He is in the process of refinancing the mortgage on the small apartment building I helped him buy. He was calling to see if I had any tips for his upcoming appraisal. As I always do before an appraisal, I … Continue reading “A pretty amazing success story”
Where are interest rates going?
I have no idea and anyone who says they know for certain is either: A liar; or Should be trading interest rate futures on Wall Street That said, having a view on interest rates is pretty important in our business. Why? Because the price of income producing real estate is highly dependent upon the cost … Continue reading “Where are interest rates going?”
Ballpark returns
Had an interesting conversation today with a guy looking at building condos / small lot. One of the questions he had was what kind of returns a developer can expect. I’m far from an expert on ground up, but I’ve run the numbers on a lot of projects. Right now, here’s where I think you … Continue reading “Ballpark returns”