All Forum Posts by: Account Closed
Account Closed has started 1 posts and replied 41 times.
Post: Failed Leadership is why California is on fire.
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @Steve K.:
Quote from @Eric Bilderback:
What started the fires? Negligent forest management, drug addicts, or illegals? DEI policies along with environmental, immigration policies is not sustainable for a non 3rd world country (my guess that is the point). I read an article I thought articulated this very well, we are seeing the collapse of a very complex system and this the fruit.
Or it could be an arsonist/ arsonists.
c
Post: Failed Leadership is why California is on fire.
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @Bill B.:
How many of these fires are arson? I keep seeing videos of people starting fires. (Including the guy with the blowtorch neighbors detained who wasn’t charged with arson but instead jailed on a “separate parole violation”.)
Read two statistics today that seem insane.
267,000 cases of arson in 2023 nationwide.
13,900 fires in JUST LA in 2023. (It didn’t list causes)
Some of that ocean front destruction is really weird. 4-5 homes destroyed everything around it is fine, and then a few blocks down another 4-5 homes. They have 4+ lanes of traffic with no fire damage on the other side, and ocean behind them.
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I hate to be “that guy”. But it sure seems like as long as the federal government keeps bailing them out no policies will ever change.
I’m at ground zero homie. I can assure you it was wildfire. My 150’ eucalyptus is my weather vane. She cried all night. I saw over a dozen transformers explode, they should have cut power the afternoon this all started.
Post: "Non representation listing please call owner direct"
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @James Wise:
Most likely a "discount listing" Owner pays realtor a small amount upfront to add it to the MLS. Owner does everything else from that point on.
Ready or not, gonna find you and make you mine.
Post: Failed Leadership is why California is on fire.
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @James Wise:
California is on fire and they don't have enough water to stop it.
California is the richest state in the USA.
California has 3,427 miles of Coastline.
___
___
Make it make sense.
You seem like the type of person who feels untouchable, you don't get to **** on my people and walk away. Good luck bro!
Post: Failed Leadership is why California is on fire.
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @James Wise:
California is on fire and they don't have enough water to stop it.
California is the richest state in the USA.
California has 3,427 miles of Coastline.
___
___
Make it make sense.
You suck!!! I'm here near the burn scar trying to find rent gougers, and you're sitting on the sidelines laughing at us. I'm sure you'll get a comeuppance, Tundra pig.
Post: SB9 Urban Lot Split Los Angeles
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @Leah Miller:
Thank you. The lot works and ok with living in one unit, just trying to find people that have executed them in Los Angeles City. Spoken to a few people that have done them, but haven't found a real expert in the matter thus far.
The expert you are looking for is called a Land Surveyor, they're going to want 5k-15k, if you want to make any money on your project you need to build a house so you also need an architect, they will want 10k-50k, if you're in a hillside zone you will also need a geologist, they're going to want 10k, you will also need a biologist, they're going to want 2k-5k. These are all upfront soft costs before you break ground. $300sqft to build at least.
If you have any sort of mortgage on the property you will need an attorney to handle the mountain of paperwork the bank will give you for a lien release. 10k+, also probably some nightmare terms to have to build and sell immediately and god knows what.
At this point a year has passed and you have spent at least $60,000 cash, you're about to break ground on a structure that will cost you at the very least $400,000 to build, you are still 1 year away from cashing out because you have to now build a house. This is after all construction in Los Angeles, if you've never done it before add 50k.
If you have $500,000 in cash I suggest you use it elsewhere, this years long headache is likely not worth the 1000's of man hours you will also have to put into it running your very own team of scientists. If you can find someone to loan you money for this endeavor please share their information with us all. If you want to add another expert to do the whole thing for you add another $100k.
Post: Why I will no longer answer questions from the unknowledgeable
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @Don Konipol:
Quote from @Account Closed:
Quote from @Don Konipol:
For the last 15 years I have been answering questions from unknowledgeable wanna be investors who watched a guru on YouTube and now wants to know where to get the earnest money to tie up multi million dollar properties before he can flip them for $200,000 profits. After I provide a true, unbiased reasonable response more likely than not I’m “attacked” for (1) being a “hater”. (2) having “it in” for wholesalers or subject to buyers or lease option advocates or land flippers, or….. (3) not “understanding” the strategy or tactic in question (4) being out of touch with the way real estate works today. So, to separate the rare newbie who is willing to do the real work at educating himself on what really is necessary for success from the people who want to take what they perceive is the guru/mentor shortcut (or the “cheap” version in which instead of buying the program you hang around the edges seeking “free” information from those who have paid for those program) I will not answer specifically as to why the program they’re suggesting won’t work or is too risky or borders on illegal. Instead I will offer a simple suggestion. Read and study
Principles of Real Estate Practice: 6th Editionby Stephen Mettling (Author), David Cusic (Author
Or a similar text. IF you do I will be happy to answer any or all questions you may have. But if the newbie won’t put the effort in to learn (1) the principles of real estate (2) real estate law and basic real estate finance I won’t make the effort to share the benefit of my knowledge and experience.
Are there any other books you recommend? I abhor the guru/get rich quick books but that's what a lot of the literature on the topic seems to be. I'm just finishing up my second new build and will have a lot of time on my hands. I'm new to investing but not construction. Thought about the UCLA Extension School, but I'm not sure it's worth the time investment/relevant to my short term goals(BRRRR, Flip, etc.). Or are there courses that aren't snake oil? Any advice is welcome, thank you!
1. How I turned $5,000 into $3 million in real estate in my spare time by Bill Nickerson
2. Invest in Debt by Jimmy Napier
disclosure - Jimmy Napier was a good friend of mine and we partnered on a number of deals.
Thanks Don! I'll throw those in the cart as well. Invest In Debt appears to be about the same vintage as my copy of Iacocca, must mean it's good too!
Post: Why I will no longer answer questions from the unknowledgeable
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @Don Konipol:
For the last 15 years I have been answering questions from unknowledgeable wanna be investors who watched a guru on YouTube and now wants to know where to get the earnest money to tie up multi million dollar properties before he can flip them for $200,000 profits. After I provide a true, unbiased reasonable response more likely than not I’m “attacked” for (1) being a “hater”. (2) having “it in” for wholesalers or subject to buyers or lease option advocates or land flippers, or….. (3) not “understanding” the strategy or tactic in question (4) being out of touch with the way real estate works today. So, to separate the rare newbie who is willing to do the real work at educating himself on what really is necessary for success from the people who want to take what they perceive is the guru/mentor shortcut (or the “cheap” version in which instead of buying the program you hang around the edges seeking “free” information from those who have paid for those program) I will not answer specifically as to why the program they’re suggesting won’t work or is too risky or borders on illegal. Instead I will offer a simple suggestion. Read and study
Principles of Real Estate Practice: 6th Editionby Stephen Mettling (Author), David Cusic (Author
Or a similar text. IF you do I will be happy to answer any or all questions you may have. But if the newbie won’t put the effort in to learn (1) the principles of real estate (2) real estate law and basic real estate finance I won’t make the effort to share the benefit of my knowledge and experience.
Are there any other books you recommend? I abhor the guru/get rich quick books but that's what a lot of the literature on the topic seems to be. I'm just finishing up my second new build and will have a lot of time on my hands. I'm new to investing but not construction. Thought about the UCLA Extension School, but I'm not sure it's worth the time investment/relevant to my short term goals(BRRRR, Flip, etc.). Or are there courses that aren't snake oil? Any advice is welcome, thank you!
Post: How much new ADU build increase value of the home in california
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @Craig Jones:
I'm not familiar with the rules in LA, but in NorCal detached ADUs on single-family properties are required to have separate utilities. They can't be piggybacked off of the main residence. For sure PG&E requires this for gas and electric, and I think most jurisdictions require it for water and sewer as well. Trenching, utility connection charges and etc. add a huge cost handicap which makes the economics unworkable in almost every case. Unless it's owner occupied and they just don't care.
I am starting to see a lot of interest in putting small ADUs on existing multi-family properties though. Like small enough to be 100% prefab offsite and then trucked in. Often these go on lot area that's been converted from parking, but it sorta depends on the property configuration. Shared utilities are the norm for multi-family so that issue doesn't comp up. And the numbers are pretty good on the projects I've looked at.
No, its not that way in LA. You actually are technically not allowed to have a second drop for electrical. The city sees it as a safety issue, they will do it, but its rare. Water/Sewer/Gas are up to you.
Post: How much new ADU build increase value of the home in california
- Developer
- Los Angeles
- Posts 45
- Votes 16
Quote from @Dan H.:
Quote from @Account Closed:
Quote from @Greg M.:
Quote from @Alberto Cioni:
The ADU unit construction here is around $ 200K-250K for 2 bed and 2 bath. But then you can rent the ADU for about $ 40000-50000 per year. So in 5 years you have the money back and endless cash flow for the future.
Your numbers fail to take in account several things. That $250K cost needs to come from somewhere. Borrowing that money @ 8% is a $20,000/year cost. Don't forget about your property taxes going up to account for that ADU. A $250K ADU = ~$3,125 more in property taxes.
I'm not sure where you're getting $3,334 - $4,167 a month for a 1,200 sq ft ADU. Los Angeles's own numbers show that ADUs are not being built in high rent locations. They're being built in places like Sylmar, Panorama City, and Sun Valley. Lots of them available for under $2K. Even in the nice locations, most top out around $2,800.
Of course there is also your increased insurance, vacancy, repairs, CapEx, and the never mentioned reduced rent on the main house since having a stranger living in your backyard usually isn't appealing to most renters.
No way it's paid off in 5 years. You're likely cashflow negative for the first few years.
ADUs are a dud. One report I saw said that something like 80% of the ADUs built were to house parents/children of the homeowner and were not being rented out. They just aren't that profitable.
I'm calling for final on a converted garage next week. In NELA it will bring in over $2k/mo, it cost $110k to build(sweat equity obviously). Maybe this is neighborhood specific, but most of the SFH within a few square miles of me sell with ADU price per square foot the same as the main house.
>most of the SFH within a few square miles of me sell with ADU price per square foot the same as the main house.
Have you seen these appraisals? I have gone to numerous RE meetups and discussed numerous ADU appraisals and was heavily involved analyzing one (that gave a value of ~$50k for a ~400' garage conversion 1/1. This analysis was for my first protege and was more thorough than the appraisal). Most (virtually all) are giving values below the main ppsf.
Can you post a property with an ADU and the recently appraised amount? I will use comp tools to appraise property value without the ADU to determine cost added by ADU.
Thanks
A property two doors down from one I own with an old house shoved in the rear of the lot sold for $650k in 2018, the developer that bought it built a new house in the front and had the old house declared an ADU. The property sold for $2.6m in 2021(timing helped). I will DM you the address but prefer not to post it. I'm sure it didn't appraise for that. But I'm sure the developer made $1m. Obviously this is California spec building and not the traditional RE stuff I come to this website to read about :)
I should not have said same as main house. Though certainly they can sell for more than they cost to build.