Some of you probably saw this on Friday. For those who didn’t: My friend Evvie, the LA editor at Daily Candy, asked me to do a piece on some off-the-beaten path Eastside neighborhoods for DC. Here’s a link to the article. The neighborhoods I discussed were Frogtown, Boyle Heights, Virgil Village (that’s the part of … Continue reading “Daily Candy piece”
Category: Buying
How being completely incapable of fixing anything can make you a great landlord
If you think that being a landlord is mostly about fixing things that break at your property, you’re wrong. Well, I mean, you can do that, if you want. You can learn how plumbing works, how to fix electrical sockets when they blow out, how to fix a leeky roof and on and on. You … Continue reading “How being completely incapable of fixing anything can make you a great landlord”
Mold inspection?
Am doing an inspection today on a building where the owners’ disclosures indicated that they previously had a mold problem. They also gave mold disclosures to some tenants. So we’re bringing a mold inspector to the inspection. Here’s how they work (I didn’t know this until yesterday): You pay an inspection fee (they quoted $750 … Continue reading “Mold inspection?”
How low interest rates are changing the multifamily market
Had a quick conversation with a loan broker last night about the loans available on 5+ unit apartment buildings right now. You can now get a 5 year fixed, non-recourse bank loan for 3.62% interest. Let’s take a look at what that means by using the example of a 5% cap deal, which is a … Continue reading “How low interest rates are changing the multifamily market”
Due diligence questions
The due diligence period, also called the contingency period, is the buyer’s chance to learn everything he can about the building before making a decision about whether to buy it. If you don’t ask your questions during the diligence period, and something comes up later, it will be too late to back out. Remember: You’re … Continue reading “Due diligence questions”
4443 Willow Brook – Sold!
We just exited another deal: 4443 Willow Brook, a 12 unit building in rapidly gentrifying East Hollywood. Here’s an exterior pic: Here are the numbers: Acquired for $925k in July 2010 Renovated for $700k All in for $1,625,000 Rent roll of approximately $217,000 / year when we stabilized it Extracted approximately $200,000 in cashflow while … Continue reading “4443 Willow Brook – Sold!”
How long should the contingency periods be?
As we’ve discussed before, when you write an offer on an apartment building in Southern California using the standard purchase agreement, what you’re really doing is handing the owner a proposed purchase contract filled out with the terms upon which you are prepared to buy the property. Theoretically, the owner could just sign the offer … Continue reading “How long should the contingency periods be?”
Managing risk
The more deals I do, the more I realize the importance of managing risk. Buying a property is kind of like a teenage seduction. Each side shows a little skin, then waits to show more until the other side shows some. First the buyer offers a price. Then the seller counters. Then the buyer accepts. … Continue reading “Managing risk”
Why you don’t close on Mondays
You never close real estate deals in California on Monday. Why? To close a deal, the escrow company generally needs to receive the funds from the buyer and the buyer’s bank the day before. Since you can’t wire money over the weekend, closing on a Monday would require that the buyer and the bank wire … Continue reading “Why you don’t close on Mondays”
Are apartments still worth buying?
This period of sustained, low interest rates is driving every sane person out of cash and into hard, income producing assets. Why? Because, after inflation, keeping your money in cash right now is basically like lighting 1-2% of it on fire each year. This has been true since 2009, but I think most people are … Continue reading “Are apartments still worth buying?”