All Forum Posts by: Ray Johnson

Last night the Mayor signed new Renters protections that the LA City Council passed. This will now allow LA renters up to 12 months to settle back rent for Residential tenants, and 3 months for Commercial tenants, before a landlord can take ANY action.

Does anyone have the fine print on this new Renters protection? All I see is it says residential renters have 12 months to catch-up or "Settle" on ANY missed rent.

Does that mean they can go without paying a single dollar over the next 12 months before a landlord can take any action?

I guess if a tenant decides to pay One dollar ($1) a month for the next 12 months, the landlord gets to collect a whole $12 for the year of income.

LA is out of control with the backlash against landlords.

@Tom Maricle I'm expecting 100% of my tenants to pay April rent on time. None are in an industry that is laying off employees, so they are all teleworking, or Essential Personnel and going to work daily.

I'm confused by all the post about people losing their job, and not being able to pay rent for many months to come. With the Fed sending them $600 a week on top of their State unemployment check, most if not all of these people will make more money now than they did when they had the job and paying rent before COVID-19.

I would expect some of you to get rent later in the month as the incoming Fed checks start to roll in, but I don't see how so many people are seeing these economic doomsday scenarios when many will make more money now.

Also lets not forget about the one-time Stimulus checks based on income, and the other check for those with children. Come May, if you haven't received rent from your tenants, it most likely intentional.

The one caveat to this is the landlords who deal in the Specialized Sector of Low-income housing, I don't deal in this space, so I'm not sure what the expectations are in this client base.

One of my brothers an Accounting Clerk, got let go on Friday, he received a payout for his accrued vacation days, and all of his unused Sick time, with that large check, and the incoming unemployment checks, I have a feeling his landlord in North Hollywood will be getting paid the rent

@Tom Maricle I'm expecting 100% of my tenants to pay April rent on time. None are in an industry that is laying off employees, so they are all teleworking, or Essential Personnel and going to work daily.

I'm confused by all the post about people losing their job, and not being able to pay rent for many months to come. With the Fed sending them $600 a week on top of their State unemployment check, most if not all of these people will make more money now than they did when they had the job and paying rent before COVID-19.

I would expect some of you to get rent later in the month as the incoming Fed checks start to roll in, but I don't see how so many people are seeing these economic doomsday scenarios when many will make more money now.

Also lets not forget about the one-time Stimulus checks based on income, and the other check for those with children. Come May, if you haven't received rent from your tenants, it most likely intentional.

The one caveat to this is the landlords who deal in the Specialized Sector of Low-income housing, I don't deal in this space, so I'm not sure what the expectations are in this client base.

One of my brothers an Accounting Clerk, got let go on Friday, he received a payout for his accrued vacation days, and all of his unused Sick time, with that large check, and the incoming unemployment checks, I have a feeling his landlord in North Hollywood will be getting paid the rent

@Kevin Kim If you're set on staying local for your first property, you may want to consider the following

• Getting a Multifamily in a good area of Los Angeles will be difficult, I would caution against tight MF deals in tenant friendly, rent controlled Los Angeles.

• In Orange County, make sure you don't go too high on the purchase price of the SFR property, you can go lower than the 850K you're thinking about spending, you'll want to make sure your mortgage expenses are less than current rents in that area.

• The nice parts of OC will not allow you to add an ADU.

There are opportunities in OC, I just closed last month on a SFR in Aliso Viejo.

Stay away from the newly remodeled SFR's, the deals are in the properties where the owners don't have much equity, can't remodel or fix up the properties, and there's no room for anyone to do a Flip, so that competition is off the board, this is the target range.

@Alejandra Tapia My thoughts are it depends on your real estate investment strategy. Early on in my investment career, the strategy I used most was purchasing from HUD.

Since Owner Occupants get to purchase before the properties become available to the investor pool, I would buy a property, live in 12-18 months, then do it again.

I didn't look for any low down payment programs as a part of my strategy, Since I do Buy-and-Hold investing for the long-term, I would put in offers that included enough down payment so the mortgages were always low enough so when I moved out and rented the property, the rent would cover all the expenses.

@Jason Allen I've seen the photos online of the people that have hoards in their garages. One woman has 48 large cases, another woman 65 cases. Once the hoarders slowdown or stop the purchases, the shelves will start to fill again. Yesterday at the Walmart near my office, I asked the store Manager how often are they getting deliveries, he said daily, they usually sell out between 10-11am. Granted I live in a more civilized neighborhood where the hoarding isn't as insane as it is in Los Angeles where my parents live. Take action quickly while the demand is there

@Scott Trench I believe the key for most landlords will be finding out which resources are available to you as a small business, and how to obtain those resources. I received an email from Washington, DC notifying all DC small business owners that DC will start taking applications for the $25 Million Microgrants fund starting today March 24, 2020. Requirements to apply: 1) 2017 & 2018 tax Returns 2) 2019 P&L Statement 3) Schedule of Liabilities 4) Business is located in DC 5) Business License is up to date 6) At least 25% of your revenue must be lost due to COVID-19 More info: WWW.CORONAVIRUS.DC.GOV/RECOVERY I won't need this resource but posting in case someone in DC does. Luckily all but one of my properties in DC is leased by a Federal government employee and they are all still working. SBA also sent out an email to DC Small Business about their SBA Disaster Relief Loan for COVID-19.

@Denise James The seller sees you as a sucker they can take advantage of, It's up to you on whether you want to make him right or wrong about that assumption.

Like others have noted, the Tax Assessment has nothing to do with the sales price, current property value, or a place at the negotiations table.

@Jeff Greenberg why is the controlling GP asking him to take a 50% cut in equity and cash flow? The terms of his shares should not change because of the refinance. If they can't buy your friend out of the deal and he will have no personal cash in the deal or a requirement to guarantee the loan, sounds like he's in a perfect scenario and just needs to ride this out for the long-term profits.

Am I missing something?

Say no to the 50% cut and collect his profits.

The 50% cut is clearly to help someone else profit on this deal, is your friend not in this as a business?

@Christian Ivanov I just closed this past Monday on an 80% LTV with PenFed Credit Union.