I’m a Redfin junky just like everyone else. I spend some time every day looking at single family houses in Eagle Rock, the Hollywood Hills, etc. I also look at properties in Big Bear and along the coast in Oxnard and Ventura. I even occasionally look at big spreads out west where land is ludicrously … Continue reading “A confession”
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More about wealth managers
Further to my previous post about wealth managers and why they’ve never called me, here’s an interesting NY Times article about the business practices of the wealth management team at JP Morgan Chase. It’s a pretty interesting piece and I would recommend giving it a read, but, if you’re busy, here’s the money quote: “These … Continue reading “More about wealth managers”
How banks (should) think about risk
Have you ever wondered why banks think in terms of debt service coverage ratio (DSCR) and loan-to-value ratio (LTV) when they’re considering whether to lend you money to buy property? They’re really thinking about two different things: 1. Whether you’ll be able to pay the mortgage (DSCR test). This is where the DSCR comes in. … Continue reading “How banks (should) think about risk”
Questions (redux)?
I’m still looking for more questions about apartment buildings from readers. I speak with many of you every day, so I know that you’re not all little real estate geniuses (not that I am, by any means!). There are definitely things you’re unsure of. And if you’re unsure, you can bet your bottom dollar a … Continue reading “Questions (redux)?”
Atwater Village Rent Survey – June 2012
Continuing our look at Eastside rents… As usual, we looked at ads posted on Craigslist for apartments within the boundaries of Atwater Village as defined by the LA Times neighborhood mapping project. A few things to note: These are asking rents; you could potentially negotiate them down This particular survey took place towards the end … Continue reading “Atwater Village Rent Survey – June 2012”
Questions?
I’d like to try something new: Asking for your questions. If you have a question about apartment buildings, either in LA or more generally, please either: Put it in the comments below, or (If you’re shy) email it to me at: moses [at] betterdwellings [dot] com At some point in the next few weeks, I’ll … Continue reading “Questions?”
Should you hold real estate in an LLC?
Lots of buyers ask me about holding properties within an entity like an LLC, instead of in their own names. I’ll share the advice I give them with you, but only if you promise to remember that I am not a lawyer and this is not legal advice. First, let’s be clear about why someone … Continue reading “Should you hold real estate in an LLC?”
All about earthquake insurance
Potential apartment building owners occasionally ask me about earthquake insurance, which is not included in a standard property insurance plan. It’s kind of scary for owners with commercial mortgages, because recourse loans require you to pay up, even in the event of the building being seriously damaged or destroyed. I’ve never bought EQ coverage … Continue reading “All about earthquake insurance”
Why you get the rents buttoned-up BEFORE listing a property
Recently, I closed on a deal where the seller inflated the rents in the marketing materials. It was an unpleasant experience for everyone involved, including the buyer, seller, agents and tenants. Here’s what happened: One of the tenants had applied to the landlord for permission to move a new occupant into his unit. Per LA … Continue reading “Why you get the rents buttoned-up BEFORE listing a property”
Beware of laundry leases!
When you first buy a building, you’re likely to be approached by someone, often the management company you hire, about signing a laundry lease. It will be pitched to you as a convenience for your tenants and an opportunity for you to make some extra cash. Be careful! What’s a laundry lease? It’s an agreement … Continue reading “Beware of laundry leases!”