We have a buyer inspecting one of the properties from Fund 1 today, so I thought this would be a good opportunity to discuss how you ought to behave when you, as a seller, attend a buyer’s inspection of your property. Here are the key things to keep in mind: Be honest. You never, ever … Continue reading “Inspection day (again)”
Category: How to
Why most Angelenos waste water
Our on-going drought was a big part of Gov. Brown’s State of the State speech today. One of the iron-clad rules of conservation is that people only conserve when they directly feel the cost of not doing so. And yet, in LA, the majority of households do not pay their own water bills, and therefore … Continue reading “Why most Angelenos waste water”
What do I think you should do?
Go buy a 2-4 unit apartment building in reasonable condition, at a reasonable price, with reasonable debt. Don’t sell it, even when the price goes up. Save money. When you’ve saved enough, buy another one. Do this four times, after which you won’t be able to get another 30 year fixed mortgage. Then move on … Continue reading “What do I think you should do?”
What is a good NOI?
I see what people search on Google that brings them to my blog. This was a question yesterday that I thought begged for an answer. First, let’s review what “NOI” is. It’s “Net Operating Income”, or what’s left over after you take in your rents and pay out all of your expenses, including property taxes, … Continue reading “What is a good NOI?”
Catching up
There are a lot of new readers here recently. Welcome. You may have noticed that the topics here jump around some. I tend to write about whatever I’m working on at any given moment, and that can vary. But it’s important to me that you get what you are presumably here for – an education … Continue reading “Catching up”
How not to act in a rising interest rate environment
We’re living in a world of rising interest rates, which are already fundamentally changing the real estate market. As discussed yesterday, as interest rates rise, prices should fall, all other things being equal. That’s because more expensive debt means reduced cashflow and lower returns at a given price. But, all things are not equal. In … Continue reading “How not to act in a rising interest rate environment”
Don’t buy apartment buildings if…
1. You don’t like confrontation. Inevitably, you are going to have tenants who screw things up and need to leave your building. No one is going to care about it as much as you do, so you’re the one with whom the buck is going to stop. If you can’t stick up for yourself / … Continue reading “Don’t buy apartment buildings if…”
FHA loan limits
Have recently had a lot of buyers interested in using FHA loans. We’ve discussed why this is a difficult time to get these loans done before. But, obviously, being able to buy an apartment building with 5% down is pretty appealing. So I thought I’d post a quick FHA refresher. FHA is a program for first … Continue reading “FHA loan limits”
How security deposits are handled in a sale
Have had this question a few times in the past few weeks so I figured I’d answer it for everyone: How are security deposits handled in a sale? First, owner typically do not maintain a separate account for security deposits. When a tenant moves into the building, he gives the landlord a check for the … Continue reading “How security deposits are handled in a sale”
Why a quiet marketing period makes sense
When it comes down to it, most brokers who sell residential properties don’t know a lot about marketing income property. (One easy way you can tell is that most of them don’t include information that is absolutely critical to an income property investor – like the rents! – in their MLS listings.) But why does … Continue reading “Why a quiet marketing period makes sense”