Avoiding a pretty painful “oops”

A reader wrote in to ask me a question about yesterday’s piece, which argued for refinancing and holding, rather than selling, completed repositioning projects. The question: “Only thing I don’t understand is why not refi on a LTV more than 60% to get back all of your original 2million dollars.” It’s a reasonable question. After … Continue reading “Avoiding a pretty painful “oops””

How a good contractor handles inspectors

By now, we’ve had a LOT of experience dealing with city inspections. And we’ve seen how many different contractors handle them. And here’s what separates the contractors who get their permits signed off from the ones who get endless streams of corrections: Good quality work (obviously); and Confidence. The nature of renovating old buildings is … Continue reading “How a good contractor handles inspectors”

If I were a broker…

…who didn’t also renovate tons of apartment buildings, I would: Run rent surveys across all relevant neighborhoods, all the time Constantly poll my clients about construction costs for different finish levels and unit sizes Constantly poll my clients about eviction / tenant relocation costs Why would I do all these things? Because, without the above … Continue reading “If I were a broker…”

Taking apart a deal: An East Hollywood Duplex

Today, I’m going to try something new: Taking a look at a deal in one of our neighborhoods so that we can get a sense for what the numbers look like for the new owner. So, let’s take a look at an East Hollywood duplex that sold yesterday. I should start out by saying I didn’t offer … Continue reading “Taking apart a deal: An East Hollywood Duplex”

Why we don’t announce closings

If you’re at all active in real estate, your email account is spammed daily by brokers announcing the closings of their latest deals. Why do they do this? Because doing so: Shows everyone in the market how active the broker is Keeps the brokers’ name in front of potential clients, increasing the chances potential clients call … Continue reading “Why we don’t announce closings”