Always, always, always check your Buyer’s estimated closing statement. Why? First, you have to understand what a Buyer’s estimated closing statement is. It’s a piece of paper that shows escrow’s calculation of how much money needs to come in from the buyer to get the deal closed. But wait, you ask, why do we need calculations? … Continue reading “Always always always check the estimated closing statement”
Category: How to
Rain’s coming
Yesterday’s LA Times had a pretty strongly-worded article warning about this winter’s El Nino, which is shaping up to be a once-in-a-generation weather event. Why am I writing about this now, during the summer, on a real estate blog? Because now would be a good time to replace worn-out roofs on your buildings. Once the rain … Continue reading “Rain’s coming”
An interesting deal we won’t win
I got a call about an interesting building in Highland Park a few weeks ago. Ordinarily, these are the types of calls I love… an interesting deal, a broker with whom I’ve done plenty of business, etc. But this one is almost definitely not happening, and here’s why: Because it’s a bankruptcy sale conducted under … Continue reading “An interesting deal we won’t win”
The benefits of being a good acquirer
Last week, we removed contingencies on the acquisition of a 16 unit building in an A area. The price is far from a steal, but it’s fair and, more importantly, works for us. The deal was never on the MLS or Loopnet. We didn’t win a bidding war. Instead, a broker with whom both buyer and … Continue reading “The benefits of being a good acquirer”
A real broker line
When discussing a deal with me today, a very good broker I know said the following, about a deal a client had in escrow at $1.1MM: “Well, it was listed at $1.3MM.” I don’t want to pick on this broker, because he’s good, but this is a bullshit broker line. As a buyer, you should not … Continue reading “A real broker line”
807 N Madison is leased up
We just finished leasing up the front structure at 807 N Madison, our most recently completed renovation project. Leasing the 10 units took us something like 31 days. We began construction in mid September of 2014, so the entire process took approx. 300 days (a little longer than we would like, due to some unanticipated … Continue reading “807 N Madison is leased up”
What’s going on today
Just in case anyone thinks what we do is glamorous, thought I’d give you guys a sense for what I’m working on today. Am working on securing four different loans: Refi of a stabilized property so we can return ~70-80% of the capital invested to our investors Two bridge / construction loans One line of credit … Continue reading “What’s going on today”
An irritating refinancing issue
Have just begun the process of refinancing 201 N Ave 55, a 12 unit property we renovated and recently stabilized. Thought I’d share with you an irritating issue I’m running into, so that you aren’t surprised when it happens to you. Let me begin by giving you some sample numbers. These aren’t actuals for the … Continue reading “An irritating refinancing issue”
Some advice I wish I had received
Going back to Princeton for reunions recently caused me to do some thinking about my personal network, which led me to thinking about advice I wish I had received when I was a kid. The advice is this: Your personal network is the most important factor in your career; Your highschool and college years are … Continue reading “Some advice I wish I had received”
Why I intentionally have a bunch of vacant apartments
Right now, I have a bunch of apartments sitting vacant. That sounds crazy, right? After all, we are in the business of renting apartments. Having vacancies means we’re intentionally not maximizing revenue, which means a lower return to us and our investors. So what’s going on? Well, we bought a bunch of buildings a few years … Continue reading “Why I intentionally have a bunch of vacant apartments”