[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”
Category: Buying
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”
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”
Inspection Day and Closing Day
Busy day today, so I thought I’d keep it kind of brief and just give you a run-down of what I’m up to: 1. Am helping clients with inspections on a beautiful 1920s fourplex they’re thinking of buying Boyle Heights using an FHA loan. We’ve been at this one once before, but one of the … Continue reading “Inspection Day and Closing Day”
Why do deposits need to be sourced?
Today’s question is quick: “Why do deposits need to be sourced?” I presume this question refers to the source of the downpayment for the purchase of a property. When you buy with a conventional loan (e.g. not an FHA loan), the bank lending you the money will very often want to know the source of … Continue reading “Why do deposits need to be sourced?”
How to avoid having to day trade your retirement account
Yesterday’s LA Times had an interesting piece about boomers day-trading their retirement accounts in an attempt to beef-up their nest eggs in advance of retirement. Here’s the money quote: “”A lot more frequent trading is happening,” said Chad Carlson, a financial planner based outside of Chicago. “People are saying, ‘I’m that much closer to retirement … Continue reading “How to avoid having to day trade your retirement account”
Kind of disappointed
I’m kind of disappointed in some of my readers. Sorry, guys. When I put out the word that I had a pair of amazing fourplexes that would really work for FHA buyers, not a single first-time buyer stepped up. Instead, the clients I’m working with on those deals are the kind of experienced investors who … Continue reading “Kind of disappointed”
How to buy an apartment building when you don’t have income
Sometimes people come to me with the following problem: They have a bunch of cash, but they don’t have much (declared) income. They want to buy an apartment building but they don’t know how. It turns out that it’s much easier to help these people buy 5+ unit buildings than it is to help them … Continue reading “How to buy an apartment building when you don’t have income”