What’s a “short-sale”, and should you offer on them?

Recently, I’ve been working with a lot of buyers who bring me short-sale deals to potentially write offers on. Thought I’d take some time to explain what a short-sale is, how the process works, and what the pitfalls are in offering on them. A short-sale is a listing where the price asked for the property … Continue reading “What’s a “short-sale”, and should you offer on them?”

Why you always ask for a detailed rent roll

If you spend a lot of time looking at apartment building listings on the MLS, you will eventually notice an extremely annoying trend: Brokers who list the total amount of rent generated by the building but not providing a detailed, unit by unit breakdown. Why do they do this? It’s probably some combination of laziness … Continue reading “Why you always ask for a detailed rent roll”

Why you need to request estoppels on every apartment deal

Section 9C of the current California Association of Realtors Residential Income Purchase Agreement (“RIPA”) contains a check box which the buyer must check in order to require the seller to provide tenant estoppels as part of the sale process. Make sure you check it. (And if your broker doesn’t check it for you, get a … Continue reading “Why you need to request estoppels on every apartment deal”

Termite inspections are a racket

There, I said it. Almost every real estate transaction in Souther California involves a termite inspection and repair. Here’s what happens: The buyer’s agent includes a request for a termite inspection and repair in the purchase agreement. The seller agrees because he doesn’t know he can push back. The listing agent chooses a termite company … Continue reading “Termite inspections are a racket”

How to determine what your mortgage payment would be

As part of WordPress, the software that runs this blog, I can see the search terms that land people on my site. Almost every day, there is someone asking Google something like “what are my payments at 5% on $400,000”. Figured I’d share with you how I estimate those. If I’m doing a spreadsheet, I … Continue reading “How to determine what your mortgage payment would be”

One phrase you want to include in all apartment offers

Almost all contracts for the purchase and sale of apartment buildings in Los Angeles are created using the standard California Association of Realtors (CAR) form. Overall, I believe the terms of this standard contract are pretty fair for both buyers and sellers (with the exception of the seller’s ability to tie up the buyer’s deposit … Continue reading “One phrase you want to include in all apartment offers”

Follow Neal and Jodi’s Landlord Adventures

Jodi and Neal, friends who I helped buy a duplex in Echo Park a few months ago, are writing an awesome blog documenting their experiences as first time landlords: soweboughtaduplex.blogspot.com. The most recent entry describes their first landlord emergency, involving a clogged pipe and a weekend call to the plumber. It’s a great reminder that … Continue reading “Follow Neal and Jodi’s Landlord Adventures”