All Forum Posts by: Adam Phebus

Go to the CA Bureau of Real Estate website to find out the requirements to get and maintain a license. As for MLS, they're regional, so lookup the MLS that serves your area and inquire about their requirements. I'm on the Westside of LA, and we have a different MLS than the San Fernando valley and South Bay, however, our MLS reciprocate (share info). You may have to hang your license with a broker to get MLS access, but you need to verify with your local MLS.

@Brian Edson Check out Matt Allen of True Building. He's done stunning work for some of my clients. http://www.truebuilding.net

@Kevin Z. 22% ROI on $30k from rent and/or nearly 23% from the increased value at a 5 cap, sounds like cash for keys is a no brainer. I can't think of many places in LA where you could make $30k work so hard for you. Once the new tenant is in at the higher rate, could you also refinance to extract capital for other investments?

@Allen Resha, 

Thanks for sharing your analysis. According to Public Records, it was built in 1967 and it's city of LA, so it should be under RSO (rent control). It's a 7,013 SF lot zoned R3, so based on current zoning regs, it doesn't seem to be a good development project at that price: http://planning.lacity.org/zone_code/Appendices/sum_of_zone.pdf

Whether it's a good buy/hold investment, I will let more experienced investors advise on the underwriting and take notes myself. If you need another opinion, I can have an investor I know review the numbers (I won't share the address) and advise - let me know. 

@Greg Scott Unfortunately, cap rates for multi-family property on the Westside of LA are around 3%. Brokers point to the value-add opportunity to raise it to a 5-6% cap, but it seems most investors are buying here for appreciation/wealth preservation. BTW, I'm originally from Clarkston, Michigan. 

@Pandu Chimata

Nice! What part of LA, year built, and anticipated exit price? I have clients looking for off-market properties.  

@Allen Resha 

Even if it doesn't make sense for buy and hold, if zoning and lot size permits a large enough condo or apt building to be built, then it could be a great deal for a developer. A client of mine is selling a small apartment building on the westside for more $ than that bc the developer is going to raze it and replace with a 5 story condo building. It's rent controlled, but they're giving cash for keys. On the Westside, unless it's in Culver City or built after 10/1978, it's going to be rent controlled. 

What's the area, lot size, and zoning? 

@Josh Wallace I see you're on the Westside like me. Have you looked at North San Fernando Valley (Northridge, Granada Hills, Sun Valley)? Our area will be tough - the developers whom I work with here are starting to shift their business models away from just modernizing and maximizing the under-built "time capsule", because price of dirt and mass proliferation of $2-4mm stucco boxes in the flats are eating into margins. They see value now in challenging hillside view lots. The complexity creates a barrier to entry, and also huge opportunity bc people are willing to pay $1,200-3,000+ / SF for a view house in a prime neighborhood that's done, done, done. 

Great tip, @Kyle J.

@Miho Y. In CA, the seller is only obligated to disclose if the death occurred within the past 3yrs. If it was within that time period, you should have a case against the seller.   

Thanks, @Steve G.

I was hoping their might be an easier way to cross reference/merge the CSV files, but I appreciate your tactic. 

To check if a property has been sold, I've been checking our public records through my MLS - very similar to the link you sent, and how you check. Again, I was hoping there was an easier way bc it's so tedious checking 1,000s of properties 1 by 1. The list provider I use is supposed to exclude properties that have sold, but I've found a few have snuck through.

Please do continue to add guidance!