All Forum Posts by: Nick Hedberg

@Ezichi Oha - The 3.3m is the after repaired value (ARV) or the price we will list it once it's rehabbed. It will probably cost about $350k to rehab.

@Tucker Singletary - I just did a quick MLS search and their are 0 SFRs under $650k in the areas you mentioned and the last one sold under $650k was in 2014.

At this point you have two options:

1. Either start looking East of the 405. There are some great areas with nice houses that will fit your budget. I think this could be a better investment since you won't have the HOA dues eating away at your cashflow.

2. If you want to stay on the Westside, Condos will be your best bet. There are currently 2 on the market under $650 in the areas you mentioned: http://www.themls.com/Share/YWFhYWZpZWlh

@Nabil Suleiman - I like it. Do you have any examples of creative deals you structured? I'm always curious as to how other's structure deals.

I was just involved in a deal where we negotiated a $2.65M house down to $2.15 and it was listed on market. We will re-list it at a VERY conservative $3.3M.

How are you finding your deals? I expect most people to say networking, but let's see what's working in this market.

• Networking
• Calling
• Doorknocking
• Postcards
• Social Media

Personally I cut back on my mailers and I'm mainly going direct to seller with door knocking and calling.  What's working for you?

Hi @Tucker Singletary, @Julian L. is spot on. That price range will barely buy you a condo in those areas. If you want multifamily you will really need to increase your budget. If you really want to stay in West LA or along the coast you need to consider AirBNB. However they are changing the laws so make sure to do your research. I'm currently working with an AirBNB client who is looking to buy in West LA and will AirBNB the other rooms in the property and convert the garage to an ADU. That's a great strategy for the coastal areas.

I'm an active agent, investor and my office in the Marina. Feel free to come by my office and we can have some coffee and bounce around ideas.

I have a 4plex in South City STL. Great cashflow!

I just got into contract on a OYO (Own Your Own) 'condo' in LA which is a fixer. Since it's OYO financing is very limited and all the units in this complex are well below market compared to normal condos where you can get traditional financing. I'm acting as an agent so I don't need financing

Does anyone have experience with OYO? More specifically converting an entire complex from OYO to a traditional HOA. I think there is potential for a group of investors to purchase a number of condos in a complex, rehab and then convince the condo owners to convert from OYO to a traditional HOA. Just the conversion is worth a considerably lift in value.

@Steve Knoll - You are correct, you aren't eligible for an ADU conversion since you have multiple units on the property. I talked to LADBS last month about this. I have a client with a 4plex who wanted to added another unit and they said its for SFRs only.

I would recommend giving them a call and seeing if you can squeeze any more SF onto the lot. You never know what options you have.

@Victor Viyuoh - The main zoning obstacles for ADUs are local setbacks and parking restrictions. I would call your local building department to get more information. Every city has it's own requirements.

Hi Andrew Yip These areas were hit hard compared to LA during the last downturn. Many people purchase in Palmdale/Lancaster because of the low cost of entry and decent rental return rates. The downside is these areas don’t have large economic engines and aren’t as resilient as Los Angeles. I talked to a landlord and agent who has 15+ properties in the area and he said it can be tough to find good tenants here. Housing prices fell significantly during the last downturn and many of his tenants lost their jobs and stopped paying rent. Make sure you have plenty of reserves and you have great tenants.